Western Michigan, Grand Rapids, MI

  • 1.  Michigan Water Pollution Control Tax Exemption Certificate

    Posted 05-24-2024 11:04
      |   view attached

    Hello, fellow CFMA members - 

    We recently had a subcontractor approach us about filling out a MI Department of Treasury Form 891, Application for Water Pollution Control Tax Exemption Certificate, for equipment they are purchasing to be installed at a tax-exempt entity's facility. We had some internal discussion about this, and some folks believe that this exemption certificate would only be applicable if the sub was merely purchasing the equipment on behalf of the client, and the client was completing the install. But in the event that the sub is involved with install in any way, then the equipment loses its "tax exempt" status. 

    Does anyone have experience with this form or the scenario, and if so, how have you handled this in the past?



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    Rio Vale
    Controller
    F&V Companies, Inc.
    Grand Rapids MI
    (616) 942-3639
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    Attachment(s)

    pdf
    Application.pdf   226 KB 1 version


  • 2.  RE: Michigan Water Pollution Control Tax Exemption Certificate

    Posted 05-25-2024 09:44

    Rio-

    I would take a look at the State of Michigan Form 3520.  This form shows the exemptions that apply for contractors in the state of Michigan and a Water Pollution Control Facility is on there.  If the owner can fill this form out and qualifies, the sub can buy the material tax exempt and install it.

    Hope that helps some.



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    Jennifer Murphy, CCIFP
    CFO/Treasurer
    Pleune Service Company
    Grand Rapids MI
    (616) 243-6374
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  • 3.  RE: Michigan Water Pollution Control Tax Exemption Certificate

    Posted 05-28-2024 08:07

    Generally the installation contractor is responsible for use tax on equip/materials/supplies during installation, but can be tax exempt if proper documentation is acquired from the client for tangible personal property - but the exempt claim must be made by the client.

    This being a tax-exempt facility, I would think the owner wouldn't want to pay tax on the equipment, but if no claim by the owner, then the contractor does have to collect and pay the use tax.

    That said, I am not sure form 891 is the proper form for the sub to use though.  Check out forms 3520 and 3372.



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    Lucrezia Esteban
    Controller
    East Muskegon Roofing and Sheet Metal Co., Inc.
    Certified Building Solutions, LLC
    Certified Sheet Metal, LLC
    Muskegon MI
    (231) 744-2461
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