(1) The tax levied shall not apply to property purchased from a seller or transferor if the property is part of the purchase or transfer of a business.
  (2) The exemption provided by this section shall not apply to all of the following:

Terms Used In Michigan Laws 205.94g

  • Business: means all activities engaged in by a person or caused to be engaged in by a person with the object of gain, benefit, or advantage, either direct or indirect. See Michigan Laws 205.92
  • Personal property: All property that is not real property.
  • Purchase: means to acquire for a consideration, whether the acquisition is effected by a transfer of title, of possession, or of both, or a license to use or consume; whether the transfer is absolute or conditional, and by whatever means the transfer is effected; and whether consideration is a price or rental in money, or by way of exchange or barter. See Michigan Laws 205.92
  • Sale: means a transaction by which tangible personal property or services are purchased or rented for storage, use, or other consumption in this state. See Michigan Laws 205.92
  • Seller: means the person from whom a purchase is made and includes every person selling tangible personal property or services for storage, use, or other consumption in this state. See Michigan Laws 205.92
  • shall not apply: means that the pertinent provision is not operative as to certain persons or things or in conjunction with a particular date or dates. See Michigan Laws 8.4c
  • Tangible personal property: means personal property that can be seen, weighed, measured, felt, or touched or that is in any other manner perceptible to the senses and includes electricity, water, gas, steam, and prewritten computer software. See Michigan Laws 205.92
  • Tax: includes all taxes, interest, or penalties levied under this act. See Michigan Laws 205.92
  • Use: means the exercise of a right or power over tangible personal property incident to the ownership of that property including transfer of the property in a transaction where possession is given. See Michigan Laws 205.92
  (a) The purchase or transfer of tangible personal property that is stock-in-trade or other property of a kind which would properly be included in the inventory of the seller or transferor if on hand at the close of the seller’s or transferor’s tax period or property held by the seller or transferor for sale to customers in the ordinary course of its trade or business.
  (b) The purchase or transfer of a motor vehicle, ORV, mobile home, aircraft, snowmobile, or watercraft.
  (3) As used in this section, “purchase or transfer of a business” means 1 or more of the following:
  (a) The purchaser or transferee has acquired and intends to use the seller’s or transferor’s trade name or good will.
  (b) The purchaser or transferee intends to continue all or part of the business of the seller or transferor at the same location or at another location.
  (c) The purchaser or transferee acquired at least 75% of the seller’s or transferor’s tangible personal property at 1 or more of the seller’s or transferor’s business locations.
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