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Michigan Department of Treasury issues guidance on claiming use tax refunds for certain cloud computing services

The Michigan Department of Treasury released guidance on Jan. 6 regarding claiming refunds for use tax paid on certain cloud computing services based on Auto-Owners Insurance Co. v. Department of Treasury. In this case, the Michigan Court of Appeals held that transfers of data to a company resulting from the third-party use of prewritten computer software weren't subject to use tax because there was no delivery of software to the company. Several additional transactions that involved the delivery of prewritten computer software or other tangible personal property were exempt from use tax because they were incidental to the rendering of professional services.

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