PDF document

- 1 -

Michigan Department of Treasury
5095 (Rev. 04-22), Page 1 of 1
DO NOT FILE
2023 Sales, Use and Withholding Taxes Monthly/Quarterly
Reset Form
and Amended Monthly/Quarterly Worksheet
Business Account Number (FEIN or TR Number) Return Period (MM-YYYY)

PART 1: SALES AND USE TAX A. Sales B. Use: Sales & Rentals
1. Gross sales for tax period being reported. Carry amount from line 1A to
line 4A ...................................................................................................... 1.

2. Rentals of tangible property and accommodations ................................. 2.
XXXXXXX
3. Telecommunications services .................................................................. 3.
4. Total gross sales, rentals, accommodations and telecommunications XXXXXXX
services: Carry amount from line 4A to line 1a on Form 5080 or Form 5092.
Add lines 1B-3B and enter total on line 4B of this worksheet. Carry this
amount to line 1b on Form 5080 or Form 5092 ................................................ 4.

5. ALLOWABLE DEDUCTIONS A. Sales Tax B. Use Tax

a. Resale, sublease or subrent ............................................................. 5a.

b. Industrial processing exemption ....................................................... 5b.

c. Agricultural production exemption .................................................... 5c.

d. Interstate commerce ......................................................................... 5d.

e. Separately itemized nontaxable service charges ............................. 5e.

f. Bad debts ......................................................................................... 5f.

g. Food for human/home consumption ................................................. 5g.

h. Government exemption .................................................................... 5h.

i. Michigan motor fuel tax .................................................................... 5i.
XXXXXXX
j. Direct payment deduction ................................................................. 5j.

k. Other exemptions and/or deductions (see instructions) ................... 5k.

l. Tax included in gross sales............................................................... 5l.
XXXXXXX
m. Total allowable deductions. Add lines 5a - 5l .................................... 5m.

6. Taxable balance. Subtract line 5m from line 4 ......................................... 6.
7. Gross tax due: Multiply line 6 by 6% (0.06) and carry amount to lines
2a and 2b on Form 5080 or Form 5092................................................... 7.

PART 2: USE TAX ON ITEMS PURCHASED FOR BUSINESS OR PERSONAL USE

8. Purchases for which no tax was paid or inventory purchased or withdrawn for business or personal use .... 8.
9. Use tax on purchases due: Multiply line 8 by 6% (0.06) and carry to line 7 of Form 5080 or
Form 5092 ...................................................................................................................................................... 9.

IMPORTANT: Record the account number and return period at the top of the form. DO NOT FILE. Retain this worksheet in the business
records. This worksheet may be subject to audit.

- 2 -

2023 Form 5095, Page 2

Instructions for 2023 Sales, Use and Withholding Taxes Monthly/Quarterly
and Amended Monthly/Quarterly Worksheet (Form 5095)

PART 1: SALES AND USE TAX transactions, of tangible personal property. However,
Lines 1 through 4: Nexus and Reporting Requirements: marketplace sellers should not report sales made through a
For information about determining whether a person marketplace facilitator.
has nexus with Michigan, see Revenue Administrative Line 2B: USE TAX - Rentals of Tangible Personal
Bulletins (RAB) 2021-21 and 2021-22. Also visit Property and Accommodations.
www.michigan.gov/remotesellers for guidance for remote
• Marketplace sellers: Do not report sales made through a
sellers and marketplace sellers, including FAQs.
marketplace facilitator.
Tax Included in Gross Sales Method (“TIGS method”):
• L essors of tangible personal property: Lessors that
Michigan sales tax (and use tax reported in this section,
have made a valid election under MCL 205.95(4) and
if applicable) is imposed on the seller. However, a seller
MAC R 205.132(1) should report receipts from rentals of
is authorized to collect the tax at the point of sale from the
that tangible personal property under the election.
customers. Sellers that separately state the tax (for example,
on a receipt) and track their sales and tax separately in their • P ersons providing accommodations:This includes but
books and records should report sales in this section without is not limited to total hotel, motel, and vacation home
tax included and should leave line 5l blank. Other taxpayers rentals, and assessments imposed under the Convention
prefer to charge their customers one amount that includes and Tourism Act, the Convention Facility Development
tax (they do not separately state the tax) yet still account Act, the Regional Tourism Marketing Act, and the
for the tax in their books and records. These taxpayers are Community Convention or Tourism Marketing Act.
allowed, but are not required, to use the TIGS method. The Line 3B: USE TAX - Telecommunications Services. Enter
TIGS method means that the taxpayer reports its gross sales gross income from telecommunications service.
on lines 1 through 4 with the tax included and uses line 5l to Line 5a-5l: Allowable Exemptions and/or Deductions. Use
calculate and deduct the tax that was included. See line 5l for lines 5a - 5l to deduct from gross sales the nontaxable sales
further instruction. A seller that did not collect the tax at the included in line 4. Deductions taken for tax exempt sales
point of sale from its customers is not permitted to use the must be substantiated in business records. A completed copy
TIGS method. of Michigan Sales and Use Tax Certificate of Exemption
Line 1A: Total Gross Sales for Tax Year. This line should (Form 3372) or the same information in another format
be used by sellers with nexus to report sales of tangible must be obtained from the purchaser. For more information
personal property where ownership transfers in Michigan. on exemption documentation, see Revenue Administrative
This includes sellers with nexus through physical presence or Bulletin (RAB) 2016-14.
economic presence (remote sales). Line 5a: Resale, Sublease or Subrent. Enter resale, sublease
Enter total sales, including cash and installment transactions, or subrent exemption claims.
of tangible personal property. Line 5b: Industrial Processing Exemption. The sale
Include: or lease of tangible personal property ultimately used in
• Any costs incurred before ownership of the property is industrial processing by an industrial processor is exempt.
transferred to the buyer, including installation, shipping, “Industrial processing” is the activity of converting or
handling, and delivery charges. conditioning tangible personal property by changing its
form, composition, quality, combination, or character. In
• Trade-in allowances if you are a vehicle dealer. general, all of the following must be met:
Do not report: • Property must be used in producing a product for
• Nontaxable services that do not involve the sale or lease ultimate sale at retail,
of tangible personal property. • Property must be sold or leased to an “industrial
• Sales made through a marketplace facilitator, if you are a processor,” including a person that performs industrial
marketplace seller. processing on behalf of another industrial processor or
This performs industrial processing on property that will be
Line 1B: USE TAX - Total Sales for the Tax Year:
line should be used by: incorporated into a product for ultimate sale at retail, and
• Sellers with nexus to report sales of tangible personal • Activity starts when property begins moving from raw
property sourced to Michigan, for which ownership materials storage to begin industrial processing and ends
transfers outside Michigan, or when finished goods first come to rest in finished goods
inventory.
• Remote sellers without nexus who voluntarily collect
Michigan tax. If property is used for both an exempt and a taxable purpose,
the property is only exempt to the extent that it is used for
Enter total sales, including cash, credit, and installment an exempt purpose. In such cases, the exemption is limited

- 3 -

2023 Form 5095, Page 3

to the percentage of exempt use to total use determined by a the completion of transfer of ownership of the property.
reasonable formula or method approved (but not required to Line 5f: Bad Debts. Bad debts may be eligible for a
be pre-approved) by Treasury. For exceptions and exclusions, deduction if the following criteria are met:
see MCL 205.54t and 205.94o.
• The debts are charged off as uncollectible on business
Line 5c: Agricultural Production Exemption. Property books and records at the time the debts become worthless
must be directly or indirectly used in agricultural production.
Generally, the following non-exhaustive list may be exempt: • The debts are deducted on the return for the period during
which the bad debts are written off as uncollectible
(i) Tangible personal property sold or leased to a person
engaged in a business enterprise that uses or consumes the • The debts are or would be eligible to be deducted for
property for either: federal income tax purposes.
• Tilling, planting, draining, caring for, maintaining, or A bad debt deduction may be claimed by a third-party lender
harvesting things of the soil, or if the retailer who reported the tax and the lender financing
the sale timely execute and maintain a separate written
• Breeding, raising, or caring for livestock, poultry, or election designating which party may claim the deduction.
horticultural products. Certain additional conditions must be met. See MCL 205.54i,
(ii) To the extent that the property is affixed to and made 205.99a. and RAB 2019-3.
a structural part of real estate for others and used for an Line 5g: Food for Human/Home Consumption. Enter the
exempt purpose in (i), tangible personal property sold to a total of retail sales of grocery-type food, excluding tobacco,
contractor that is one of the following: marihuana products, and alcoholic beverages. Prepared food
• Agricultural land tile is subject to tax. See MCL 205.54g and MCL 205.94d for
• Subsurface irrigation pipe more information.
• Portable grain bins Line 5h: Government Exemption. Direct sales to the
United States government or the state of Michigan or its
• Grain drying equipment and its fuel or energy source political subdivisions are exempt.
However, the following sales from (i) or (ii) are not exempt: Line 5i: Michigan Motor Fuel Tax. Motor fuel retailers
• Food, fuel, clothing, or similar property for personal may deduct the Michigan motor fuel taxes that were included
living or human consumption, or in gross sales on line 1 and paid to the State or the distributor.
• Property permanently affixed to and becoming a Line 5j: Direct Payment Deduction. Enter sales made to
structural part of real estate unless it is agricultural land purchasers that claimed direct pay exemption from sales
tile, subsurface irrigation pipe, a portable grain bin, or and use taxes. With the exemption claim, the purchaser must
grain drying equipment. Certain property that can be include the following statement: “Authorized to pay use tax
disassembled and reassembled may be exempt. on purchases of tangible personal property directly to the
Some specific types of exempt property and exempt uses of State of Michigan under Account Number [listing either the
property are clarified in the statute. If property is used for Federal Employer Identification Number or the Michigan
both an exempt and a taxable purpose, the property is only Treasury Registration Number]”. If using Michigan Sales and
exempt to the extent that it is used for an exempt purpose. Use Tax Certificate of Exemption (Form 3372), check the box
In such cases, the exemption is limited to the percentage of in Section 3 for “Other” and include the above statement as
exempt use to total use determined by a reasonable formula the explanation. MCL 205.98.
or method approved (but not required to be pre-approved) Line 5k: Other Exemptions and/or Deductions: Identify
by Treasury. For more information, see MCL 205.54a and exemptions or deductions not covered in items 5a through 5j
205.94. on this line. Examples of exemptions or deductions are:
Line 5d: Interstate Commerce. Enter sales made in • When the trade-in value of a motor vehicle is less than the
interstate commerce. To claim such a deduction, the MI trade-in allowance, use the trade-in value for the
property must be delivered by the business to the out-of-state allowable deduction. When the trade-in value of a motor
purchaser. Property transported out-of-state by the purchaser vehicle is equal to or greater than the MI trade-in
does not qualify as interstate commerce. Documentation of allowance, use the MI trade-in allowance amount for the
out-of-state shipments must be retained in business records to allowable deduction. Trade-ins of RVs and watercraft are
support this deduction. not subject to limitation. See FAQs for trade-in limits.
Line 5e: Separately Itemized Nontaxable Service Taxes paid to Secretary of State are not reported here.
Charges. Enter separately itemized labor or service Instead, they are reported on the Vehicle Dealer
charges involved in maintenance and repair work on Supplemental Schedule (Form 5086, e-file only).
property owned by others if these charges were included • Credit for the core charge attributable to a recycling fee,
in gross sales on line 1. Do not subtract any other service deposit, or disposal fee for a motor vehicle or recreational
necessary to complete the sale of taxable property or any vehicle part or battery if the recycling fee, deposit, or
delivery or installation charges that were incurred before disposal fee is separately stated on the invoice, bill of sale,

- 4 -

2023 Form 5095, Page 4

or similar document given to the purchaser. • V ehicle sales to non-reciprocal states for which no tax was
• D irect sales, not for resale, to certain nonprofit agencies, paid to Secretary of State.
churches, schools, hospitals, and homes for the care of • Q ualified nonprofit organizations with aggregate sales in
children and the aged, to the extent the property is used to the calendar year of less than $25,000 may exempt the
carry out the nonprofit purpose of the organization. For first $10,000 of sales for fundraising purposes. Separately,
sales to certain nonprofit agencies, the exemption is veterans organizations exempt under IRC 501(c)(19) may
limited based on the sales price of property used to raise exempt sales for the purpose of raising funds for the
funds or obtain resources. All sales must be paid for benefit of an active duty service member or veteran, up to
directly from the funds of the exempt organization to $25,000 per event.
qualify. Line 5l: Tax Included in Gross Sales. Complete this line
• A ssessments imposed under the Convention and Tourism only if you reported sales on lines 1 through 4 with the
Act, the Convention Facility Development Act, the tax included and you collected tax that was not separately
Regional Tourism Marketing Act, or the Community stated from your customers (you used the Tax in Gross Sales
Convention or Tourism Marketing Act. Hotels and motels Method—see above line 1). If these conditions apply, all tax
may deduct the assessments included in gross sales and will be deducted on this line so that line 7, “Gross tax due”,
rentals provided use tax on the assessments was not calculates correctly. Subtract lines 5a through 5k from line 4,
charged to the customers. then divide the difference by 17.6667. Enter the result on line
• C redits allowed to customers for sales tax originally paid 5l.
on merchandise voluntarily returned, provided the return PART 2: USE TAX ON ITEMS PURCHASED FOR
is made within the time period for returns stated in the BUSINESS OR PERSONAL USE
taxpayer’s refund policy or 180 days after the initial sale,
Line 8: Unless a specific exemption applies enter purchases
whichever is earlier. Repossessions are not allowable
for which no sales or use tax was paid, including property
deductions.
withdrawn for business or personal use. See Michigan
• S ales to contractors of materials which will become part Use Tax Act, 1937 PA 94, for information on various
of a finished structure for a qualified exempt nonprofit exemptions. For questions contact Michigan Department of
hospital, qualified exempt nonprofit housing entity or Treasury at 517-636-4357. For Manufacturer/Contractors,
church sanctuary, or materials to be affixed to and made a alternative measures of the use tax base should be reported
structural part of real estate located in another state. The (see MCL 205.93a(1)(f) and (g) and RAB 2016-24 for more
purchaser will provide a Michigan Sales and Use Tax information). For all other taxpayers, report the “purchase
Contractor Eligibility Statement (Form 3520). See RAB price” as defined in MCL 205.92(f).
2016-18.

PDF file checksum: 4014002063

(Plugin #1/9.12/13.0)