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Legislative
& Regulatory Alerts - 2003/04 Archive
2004 Alerts
Archive:
Minimum price replaces uniform price
for spirits.
[NOVEMBER, 2004]
The Liquor Control Commission issued a
News Release stating that PA 407 of 2004 took immediate
effect November 30, 2004 allowing liquor licensees the
flexibility of pricing spirit products above a statewide
minimum. The change to section 229 of 1998 PA 58, replaces the
previous requirement of a "uniform" price for spirit products,
with a "minimum" price that can be altered upward by retail
sellers. The state markup at 65% remains unchanged. The statute
change effects primarily the licensees who hold a Specially
Designated Distributor (SDD) for the sale of spirit products for
off-premises consumption (i.e., grocery stores, party or
convenience stores). Back to Top

Ad-Tabs Licensee Alert - Sales Must Cease Immediately
[OCTOBER 2004] The
Michigan Liquor Control Commission and the Michigan Bureau
of State Lottery have been involved in a lawsuit with
F.A.C.E. Trading, Inc., which produces and distributes
Ad-Tabs, a pull-tab type lottery game. MLCC and Lottery
have always contended that Ad-Tabs are an illegal pull-tab
game tantamount to a lottery contrary to the state penal
code. On June 30, the Honorable James R. Giddings, Ingham
County Circuit Court Judge rules that Ad-Tabs do constitute
a lottery or a gift enterprise forbidden by the Michigan
Penal Code. The Michigan Court of Appeals and Michigan
Supreme Court have denied a stay of the Circuit Court ruling
pending appeal. Accordingly, Judge
Gidding’s decision is immediately effective and the selling
or possessing of Ad-Tab game pieces is illegal and subject
to enforcement action.
MLCC licensees
are hereby advised that:
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Ad-Tab sales should cease immediately. |
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All Ad Tab games pieces must be removed
from licensed premises no later than October 17, 2004. |
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Failure to cease sales and remove all
Ad-Tab tickets by October 17, 2004 will result in
enforcement action by MLCC. Failure to comply with
this directive may result in a fine of up to $300 per
charge, and/or license suspension, and/or license
revocation.
Back to Top |

Nursery/Plant Dealer & Grower License Renewals Due October
31
[OCTOBER 2004]
The Michigan Department of Agriculture (MDA)
reminds retailers that Nursery/Plant Dealer & Grower
License renewals are due on or before October 31. The
Insect Pest and Plant Disease Act requires that any
person, firm, partnership, association or corporation
engaged in the business of growing, selling or
re-shipping nursery stock or herbaceous perennials must
be licenses in the state of Michigan.
A Plant Dealer License covers the
sale, at a permanent business location other than the
growing location, of hardy plants including perennials
such as soft-stemmed flowering
plants and Hostas, small fruit plants, rhubarb and asparagus, or
hardy bulbs. If a retailer sells rose bushes, they need
to obtain a Nursery Stock Dealer License. If you
hold a Nursery Stock Dealer License, a Plant Dealer
License is not required.
A license is not required for the sale of
cut flowers, annual flower or vegetable plants or
non-hardy tropical types, including houseplants such as
African violets, Ficus trees or philodendrons. The
sale of mums depends on the type and intended use.
According to MDA policy, garden mums, which are often
planted outdoors, are considered to be part of the
perennial group and therefore require a dealer license
to sell them. Florist or gift mums (often sold as
table decorations) would be exempt because they are
usually discarded and represent less overall pest-risk.
If you are not sure if you need a
license, contact your local
MDA regional office staff who can make an on site
determination.
Fees for the Plant Dealer or
Nursery Stock Dealer licenses have each
increased from $20 to $100 annually beginning October 1,
2003 to September 30, 2007. Beginning October 1, 2007,
the license fee will drop back to $20 annually. Visit
the "Licensing,
Certification & Registration" section of MDA's
website for more information and to download the
Nursery/Plant Dealer & Grower License Application Form
PI-017 (PDF file).
Back to Top

What you need to know about
Streamlined Sales and Use Tax
Changes
[AUGUST 2004]
Substantive Changes to the Sales and
Use Tax Statutes to Comply with the Agreement
Food: Prior to Streamlined, Michigan
taxed "prepared food intended for immediate consumption."
Other food was exempt. The Agreement definition of "prepared
food" differs slightly from the previous definition. This will
result in a slight expansion of the exemption.
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EXAMPLE:
Prior to Streamlined, bakery goods were exempt if purchased
for "off premise" consumption, and taxable if purchased for
"on premise" consumption. Under Streamlined, bakery goods
are exempt unless they are sold with an "eating utensil."
"Eating utensils" are defined to include knives, forks,
spoons, glasses, cups, napkins, straws, or plates.
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EXAMPLE:
Prior to Streamlined, Michigan law provided that food
arranged on a plate or platter, whether intended for
individual or multiple servings and whether sold by the
pound or by the serving was taxed as "prepared food intended
for immediate consumption." "Deli trays" were generally
subject to tax. Under Streamlined, food sold in an unheated
state by weight or volume as a single item is taxable only
if sold with eating utensils. Under Streamlined, "deli
trays" will generally not be subject to tax. |
Has the Due Date
Changed for Payments of Sales, Use and Withholding Taxes?
Yes. Beginning with the September
2004 file period, the due date for monthly or quarterly sales,
use and withholding tax payments is the 20th of the
month following the tax period (the September payment and
Combined Return for Michigan Taxes is due October 20th).
This change is effective for all three taxes (sales tax, use
tax and withholding tax).
If you pay your
taxes using electronic funds transfer, or are required to file
your sales and use tax or your withholding tax on an
accelerated basis, click below for additional due date
information.
Is the Sales and Use
Tax Early Payment Discount Date and Timely Payment Discount
Changed?
Yes. The sales and use tax early payment discount is moved
from the 7th of the month to the 12th of
the month. The early payment discount is not available on
accelerated sales and use tax payments. The sales and use tax
timely discount is moved from the 15th of the month
to the 20th of the month.
If I Only Pay
Withholding Tax, Did the Change in Due Dates for Streamlined
Sales Tax Compliance Affect My Withholding Tax Payment Due
Date?
Yes. Beginning with the September 2004 file period, the due
date for monthly or quarterly Michigan withholding tax payment
is the 20th of the month following the tax period
(the September payment and combined Return for Michigan Taxes
is due October 20th). This change was made so that
the due date for sales tax, use tax, and withholding tax is
the same date.
What is the First
File Period Affected By the Change In Due Dates?
The first file period
affected by the change in due dates is September 2004. The
September 2004 Combined Return for Michigan Taxes is due
October 20, 2004. The August return due date remains September
15, 2004.
Do I continue to use
my existing tax return(s)?
Yes. Continue to use your
pre-identified returns for 2004. The only change to the return
is the due date that is printed on the form. The Combined
Return for Michigan Taxes will be updated to reflect the
correct due date for 2005.
Does the Due Date
for the Annual Return Change?
No. The due date for filing Form 165, Annual Return for Sales
Use and Withholding Taxes continues to be February 28th.
How Does This Affect
Payment of Tax Using Electronic Funds Transfer (EFT)?
The due date for monthly payment of sales, use and withholding
tax is changed to the 20th of the month following
the tax period (the September payment is due October 20th).
If the due date falls on a weekend or state holiday, the due
date is the next business day. To comply with Streamlined
Sales Tax, Michigan now recognizes Columbus Day as a banking
holiday and will accept payments as timely the following
business day, if the due date falls on Columbus Day. To assure
timely receipt, EFT payments must be initiated by 4:00 p.m.
one (1) business day prior to the due date.
How does
this affect accelerated Sales and Use Tax filers?
The due date
for the first 50% payment made by a taxpayer required to file
Sales and Use Tax on an accelerated basis has changed from the
15th to the 20th of the current month.
The second 50% payment remains due on the last day of the
month. The reconciliation payment is now due on the 20th
of the following month. This change is effective with the
first 50% payment due for the September 2004 tax period. The
reconciliation payment for the August 2004 tax period remains
due September 15, 2004.
To
comply with Streamlined Sales Tax, Michigan now recognizes
Columbus Day as a banking holiday and will accept payments as
timely the following business day, if the due date falls on
Columbus Day. To assure timely receipt, EFT payments must be
initiated by 4:00 p.m. one (1) business day prior to the due
date.
Have the Accelerated
Withholding Tax Due Dates Changed?
No. Accelerated Withholding
Tax filers are still required to remit withholding taxes
electronically accordingly to the same schedule as the federal
withholding payments. To assure timely receipt, EFT payments
must be initiated by 4:00 p.m. one (1) business day prior to
the due date.
For additional information, visit
Treasury’s website at
http://www.michigan.gov/treasury.
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