Mich. Admin. Code R 205.127 — Water

Rule 77. (1) Sales of water are taxable except when delivered through water mains,
sold in bulk tanks in quantities of not less than 500 gallons, sold as bottled water, or
sold for an exempt use.
(2) The sale of equipment, tools, machinery, pipes, fittings and supplies to a
person for consumption or use in distributing and carrying water is taxable. Sales of
tangible personal property for installation as a component part of a water pollution
control facility are exempt if the facility was issued a tax exemption certificate under part
37 of the natural resources and environmental protection act, 1994 PA 451, MCL
324.3701 to 324.3708.
(3) As used in this rule, “bottled water” means water that is placed in a safety sealed
container or package for human consumption, including water that is delivered to the
buyer in a reusable container that is not sold with the water. Bottled water is calorie free
Courtesy of Michigan Administrative Rules
and does not contain sweeteners or other additives except that it may contain 1 or more of
the following:
(a) Antimicrobial agents.
(b) Fluoride.
(c) Carbonation.
(d) Vitamins, minerals, and electrolytes.
(e) Oxygen.
(f) Preservatives.
(g) Only those flavors, extracts, or essences derived from a spice or fruit.