Michigan Department of Treasury Replaces SUT RAB 2000-4 – Industrial Processing

Written By: Baden Tax

On May 14, 2024, the Michigan Department of Treasury issued Revenue Administrative Bulletin (RAB) 2024-7 – Sales and Use Tax – Industrial Processing, to replace RAB 2000-4. RAB 2024-7 is retroactive to all periods that are open under the statute of limitations. RAB 2024-7 incorporates legislative changes and legal principles from binding precedent decided after the issuance of RAB 2000-4. This new RAB provides an updated definition of industrial processing to include:

• Affixing tangible personal property to a structural part of real estate in another state or for the exempt purposes described in MCL 205.54t or MCL 205.94
• Processing of aggregate materials.

The bulletin also provides updated examples of persons that can claim the exemption, activities & property eligible for the exemption, and examples of activities & property that are not eligible for the exemption.

This bulletin does not replace other RABs that address the industrial processing exemption as applied to a particular industry or item of tangible personal property.

For more information about this topic, please contact Gary Schleinkofer at 260-969-2576 or gschleinkofer@badentax.com