Mich. Admin. Code R 205.95 — Leased departments

Rule 45. (1) Where an established business leases a portion of its shelves,
counters, or floor space to other persons selling tangible personal property to
consumers, the sales of tangible personal property by the leased departments shall be
included in the tax return of the lessor, who shall pay the tax thereon to the state. A
lessor not otherwise subject to the tax shall obtain a license in behalf of the lessee.
(2) When the lessee conducts the leased department in the same manner as an
established like business, and gives evidence to the public that he is conducting his
department separately from the lessor's business, or if separate business records are
kept, the lessee may apply for a sales tax license, if the lessee keeps separate records
of his business and files separate returns. The lessor shall be responsible for the tax
unless the lessee obtains such a license.
(3) The word "lease," as used in this rule, includes permitted occupancy,
regardless of consideration. The liquor commission restrains persons licensed by the
commission from subleasing or surrendering any part of the business conducted at or
on the licensed premises.