Mich. Admin. Code R 205.13 — Casual or isolated sales

Rule 13. (1) Sales at retail must not include an isolated transaction made other than
in the ordinary course of repeated and successive transactions of a like character, which
includes, but is not limited to, a situation where an individual sells personal household
furniture, a farmer sells farm machinery or other farm equipment, or a merchant sells a
cash register, counters or other store fixtures at auction or otherwise. These sales are
casual or isolated transactions and are not subject to tax. However, any individual who in
any manner or at any time advertises, solicits, or offers tangible personal property for sale
for the purpose of repeated sales is determined to be regularly engaged in business and
those sales are not considered casual or isolated, even though they may be few or
infrequent.
(2) Vehicles, aircraft other than a qualified aircraft under section 11 of the
streamlined sales and use tax revenue equalization act, 2004 PA 175, MCL 205.181,
ORVs, manufactured housing, snowmobiles, and watercraft acquired in an isolated
transaction from a person that is not a retailer are subject to an equalization tax. The
equalization tax on vehicles, snowmobiles, and watercraft must be paid to the secretary of
state before the transfer of a vehicle title, snowmobile registration, or watercraft
registration. The equalization tax on the transactions is imposed at a rate of 6% of the
retail dollar value of the item at the time of acquisition. The equalization tax on the
transfer of aircraft, other than a qualified aircraft under section 11 of the streamlined sales
and use tax revenue equalization act, 2004 PA 175, MCL 205.181, must be paid directly
to the department of treasury by the purchaser. The equalization tax on manufactured
housing must be collected by the secretary of state before the transfer of the certificate of
title. All use tax exemptions also apply to the equalization tax. Credit is given for any use
tax paid against equalization tax that is due on the same transaction.
(3) A person that is not licensed as an automobile dealer by the secretary of state is
presumed to be in the business of making retail sales when selling or offering for sale 3
or more used vehicles in the previous 12 months.
Courtesy of Michigan Administrative Rules
(4) A person that holds a single sales event per calendar year, such as a garage or
yard sale to sell personal household items, that lasts no longer than 3 consecutive days, is
not making sales at retail and is not liable for tax on the transactions.
(5) The tax base under the streamlined sales and use tax revenue equalization act,
2004 PA 175, MCL 205.179, is the retail dollar value of the property as listed in an
industry accepted pricing guide applicable to the property. It is solely within the
department of treasury’s discretion to determine if a pricing guide is industry accepted.