statement: “Direct pay authorized under Account Number
[listing either the Federal Employer Identification Number or
the Michigan Treasury Registration Number].” MCL 205.98.
Line 5k: Other Exemptions and/or Deductions. Identify
exemptions or deductions not covered in items 5a through 5j
on this line. Examples of exemptions or deductions are:
• Allowable trade-in values on vehicle sales. Motor vehicle,
recreational vehicle, and watercraft dealers may be eligible
to deduct a limited trade-in value under MCL 205.51(d).
Taxes paid to Secretary of State are not reported here.
Instead, they are reported on the Vehicle Dealer
Supplemental Schedule (Form 5086, e-file only).
• Direct sales, not for resale, to certain nonprofit agencies,
churches, schools, hospitals, and homes for the care of
children and the aged, to the extent the property is used to
carry out the nonprofit purpose of the organization.
Limitations apply to vehicles. All sales must be paid for
directly from the funds of the exempt organization to
qualify.
• Assessments imposed under the Convention and Tourism
Act, the Convention Facility Development Act, the
Regional Tourism Marketing Act, or the Community
Convention or Tourism Marketing Act. Hotels and motels
may deduct the assessments included in gross sales and
rentals provided use tax on the assessments was not
charged to the customers.
• Credits allowed to customers for sales tax originally paid
on merchandise voluntarily returned, provided the return
is made within the time period for returns stated in the
taxpayer’s refund policy or 180 days after the initial sale,
whichever is earlier. Repossessions are not allowable
deductions.
• Sales to contractors of materials which will become part
of a finished structure for a qualified exempt nonprofit
hospital, qualified exempt nonprofit housing entity or
church sanctuary, or materials to be affixed to and made a
structural part of real estate located in another state. The
purchaser will provide a Michigan Sales and Use Tax
Contractor Eligibility Statement (Form 3520). See RAB
2016 -18.
• Vehicle sales to non-reciprocal states for which no tax was
paid to Secretary of State.
• Qualified nonprofit organizations may take a deduction
for the sale of the first $10,000.00 of tangible personal
property in a calendar year for fund-raising purposes if
the aggregate sales at retail in the calendar year are less
than $25,000.00. For qualifications, see RAB 1995-3.
Line 5l: Tax Included in Gross Sales. If you have tax
included in your gross sales, divide your gross sales by
17.6667 and enter the amount.
Line 8: If more tax was collected than the amount on line 7,
enter the difference.
Line 10: Total Discount Allowed.
• Annual filers: Enter $72 if the tax due on line 9 is $108 or
more. If tax due is less than $108, calculate the discount
by multiplying line 9 by 2/3 (0.6667).
• Accelerated/Monthly/Quarterly filers: Enter total
discounts allowed for the year.
Line 12: Enter total payments plus credits from 2019 Fuel
Supplier and Wholesaler Prepaid Sales Tax Schedule
(Form 5083), 2019 Fuel Retailer Supplemental Schedule
(Form 5085), and 2019 Vehicle Dealer Supplemental
Schedule (Form 5086), if applicable, made for the current tax
year.
Note: all prepaid sales tax schedules are e-le only.
PART 2: USE TAX ON ITEMS PURCHASED FOR
BUSINESS OR PERSONAL USE
Line 13: Enter purchases for which no tax was paid,
including property withdrawn from inventory for business
or personal use. For Manufacturer/Contractors, alternative
measures of the use tax base should be reported (see
MCL 205.93a(1)(f) and (g) and RAB 2016-24 for more
information). For all other taxpayers, report the “purchase
price” as defined in MCL 205.92(f).
PART 3: WITHHOLDING TAX
Line 17: Enter the number of your W-2 and 1099 statements.
Line 18: Enter the total Michigan income tax withheld for
the return year.
Line 19: Enter the total Michigan income tax withholding
previously paid for the return year. (Do not include penalty
and interest).
PART 4: SUMMARY
Line 24: Enter the amount of overpayment from line 22 to be
refunded. Refunds will not be made in amounts of less than
$1.
Line 25: If line 21 (tax paid) is less than line 20 (tax due),
enter the additional tax due. Pay any amount greater than or
equal to $1.
Line 28: Total Payment Due. Add lines 25, 26 and 27. Make
check payable to “State of Michigan.” Write the account
number, “SUW Annual” and the tax year on the check. Do
not pay if the amount due is less than $1.
How to Compute Penalty and Interest
If the return is filed after February 28 and no tax is due,
compute penalty at $10 per day up to a maximum of $400.
If the return is filed with additional tax due, include penalty
and interest with the payment. Penalty is 5% of the tax due
and increases by an additional 5% per month or fraction
thereof, after the second month, to a maximum of 25%.
Interest is charged daily using the average prime rate, plus 1
percent.
Refer to www.michigan.gov/taxes for current interest rate
information or help in calculating late payment fees.
Wage Statements and Reporting
Wage statements are federal forms and include W-2s and
1099s. W-2 statements must be furnished to employees by
January 31. See IRS form instructions to determine the
deadline to furnish 1099 forms to recipients. State copies of
wage statements are due to the Department of Treasury on
2019 Form 5081, Page 4
