Michigan charges a flat 6% sales and use tax on retail sales statewide, with no city or county add-ons, per the Michigan Department of Treasury. A missing or incomplete exemption certificate leaves the seller liable for that 6% tax in an audit. Michigan Treasury handles every exemption with one document: Form 3372, the Michigan Sales and Use Tax Certificate of Exemption.
There is no separate resale certificate in Michigan. The same Form 3372 covers resale, nonprofit, government, agricultural, and contractor claims. Buyers hand it to sellers, and sellers keep it as audit proof.
What Is the Michigan Sales Tax Exemption Certificate (Form 3372)?
Form 3372, the Michigan Sales and Use Tax Certificate of Exemption, is the single Michigan Treasury form that covers every exemption claim in the state. An exemption certificate is a document a buyer gives a seller to purchase tangible personal property without paying sales tax. The seller retains it as proof. The current version is Form 3372, Rev. 02-25, issued February 2025.
Does Michigan Have a Separate Resale Certificate?
No. Michigan does not issue a standalone resale certificate. The Michigan resale certificate is Form 3372 with the resale box checked, either “Resale at Retail” or “Resale at Wholesale,” plus a valid Michigan Sales Tax License Number. Michigan Treasury’s sales and use tax exemptions guidance confirms it issues no separate “tax exempt numbers,” so a number cannot replace a completed certificate.
What Is Exempt From Sales Tax in Michigan?
Michigan recognizes six entity- and use-based exemptions, all claimed on Form 3372: resale, nonprofit, government, agricultural, contractor purchases for nonprofit hospitals or housing, and contractor purchases for a church sanctuary. Each requires specific documentation. This page covers entity and use exemptions. For product-level exemptions like groceries and prescription drugs, see the Commenda Michigan sales tax guide.
| Exemption type | Who qualifies | Required documentation | Source |
|---|---|---|---|
| Resale | Retailers and wholesalers buying goods to resell | Form 3372 marked “Resale at Retail” (needs a Michigan Sales Tax License Number) or “Resale at Wholesale” | Form 3372 instructions |
| Nonprofit | 501(c)(3), 501(c)(4) entities, schools, churches, nonprofit hospitals | Form 3372 plus IRS determination letter; uses the FEIN (Federal Employer Identification Number) | Michigan Treasury exemptions FAQ |
| Government | US government, State of Michigan, its subdivisions, departments, and institutions | Form 3372 plus a government purchase order or a warrant paid directly from government funds | Form 3372 instructions |
| Agricultural | Producers using property in crop or livestock production | Form 3372 specifying agricultural production, plus FEIN or Michigan Sales Tax License Number | Form 3372 instructions |
| Contractor: nonprofit hospital or housing | Contractors affixing materials as a structural part of a nonprofit hospital or nonprofit housing | Form 3372 plus a signed statement from the nonprofit | Form 3372 instructions |
| Contractor: church sanctuary | Contractors buying materials for the sanctuary portion used predominantly for public worship | Form 3372 plus a signed statement from the church | Form 3372 instructions |
How Do You Get a Michigan Sales Tax Exemption Certificate?
You do not apply to the state. Download Form 3372 from Michigan Treasury, complete it, attach supporting documents (an IRS determination letter for nonprofits, a signed statement for contractor exemptions), and give it to the seller at the point of sale. No state-issued exemption number exists; nonprofits use their FEIN (Federal Employer Identification Number). Sellers verify details through Michigan Treasury Online (MTO).
Do You Need a Michigan Sales Tax License to Use a Resale Certificate?
Yes, for resale claims. A resale-at-retail exemption on Form 3372 requires an active Michigan Sales Tax License Number in Section 3, per the form instructions. Nonprofit, government, and agricultural buyers use a FEIN instead. You need a license to sell and collect tax, and a certificate to buy tax-free. Register for a license through the Michigan Treasury sales and use tax page, then set up your account with the Commenda Michigan sales tax permit guide.
How Do You Fill Out Form 3372?
Complete Form 3372 in five parts: choose the transaction type, list the items covered, check the exemption basis, enter buyer information, then sign. Paper and electronic certificates are equally valid; digital copies are acceptable if complete and legible. An incomplete certificate is invalid in an audit.
- Transaction type. Mark a one-time purchase or a blanket certificate for recurring purchases.
- Items covered. Describe the property, or indicate that all purchases from the seller are exempt.
- Basis for exemption. Check the correct box (resale, nonprofit, agricultural, government, or contractor).
- Buyer information. Enter name, address, and FEIN or Michigan Sales Tax License Number.
- Certification and signature. The buyer signs to certify the claim. The signature requirement is waived for electronic submissions.
An incomplete certificate carries no protection. If any required field is blank, the certificate is invalid during a Michigan Treasury audit and the seller owes the tax.
How Does the Michigan Nonprofit Sales Tax Exemption Work?
501(c)(3) and 501(c)(4) organizations, schools, churches, and nonprofit hospitals claim exemption with Form 3372 plus a copy of the IRS determination letter, per Michigan Treasury guidance. Michigan issues no separate exemption number and uses the organization’s FEIN. A nonprofit’s FEIN alone is not sufficient proof; the IRS determination letter must accompany the completed form.
How Do Churches Claim the Michigan Nonprofit Exemption?
Two routes apply. A church buying goods for its own operations, such as office supplies or equipment, claims the nonprofit exemption itself with Form 3372 plus its IRS determination letter. A contractor buying building materials for the sanctuary portion uses the separate contractor route below. That route requires a signed statement from the church and covers only the sanctuary, not the whole building.
Who Qualifies for the Michigan Agricultural Sales Tax Exemption?
Purchases of tangible personal property used directly or indirectly in tilling, planting, caring for, maintaining, or harvesting crops, or in breeding, raising, or caring for livestock, poultry, or horticultural products qualify. The buyer claims the exemption on Form 3372 by specifying agricultural production and entering a FEIN or Michigan Sales Tax License Number.
How Does the Michigan Sales Tax Exemption for Contractors Work?
Contractors are generally the consumers of the materials they install and pay tax on them. Two narrow exceptions exist: materials affixed to and made a structural part of a nonprofit hospital or nonprofit housing, and materials for the sanctuary portion of a church used predominantly for public worship. Both require Form 3372 plus a signed statement from the exempt entity.
The scope is deliberately narrow. The church exception covers the sanctuary only, and the hospital or housing entity must not be operated for profit.
Are Government Purchases Exempt From Michigan Sales Tax?
Yes. Sales to the US government, the State of Michigan, and its political subdivisions, departments, and institutions are exempt. The buyer pairs Form 3372 with a government purchase order or a warrant paid directly from government funds, per the Form 3372 instructions. No prior registration is required.
Do Michigan Sales Tax Exemption Certificates Expire?
A single-purchase certificate covers one transaction. A blanket certificate covers recurring purchases from the same seller for up to four years, per the Form 3372 instructions, or a shorter period the buyer specifies. It becomes invalid earlier if the buyer’s eligibility changes.
| Rule | Period | Source |
|---|---|---|
| Blanket certificate maximum coverage | 4 years (a recurring relationship means no more than 12 months between sales) | Form 3372 instructions |
| Seller record retention | 4 years | Michigan Treasury / Form 3372 instructions |
Eligibility changes that void a certificate include revoked or lapsed 501(c)(3) status, an expired or cancelled Michigan sales tax license, or a change in the use or nature of the business. Michigan does not require sellers to re-verify eligibility on a set schedule.
Does Michigan Accept Out-of-State or Multistate Exemption Certificates?
Yes, within limits. Michigan Treasury’s Revenue Administrative Bulletin 2022-19 (RAB 2022-19) lets sellers accept Form 3372, the Multistate Tax Commission (MTC) Uniform Sales and Use Tax Certificate, or the Streamlined Sales and Use Tax Agreement (SSUTA) Certificate of Exemption. Form 3372 remains Michigan Treasury’s preferred form.
| Certificate | Accepted in Michigan | Scope | Source |
|---|---|---|---|
| Form 3372 | Yes (preferred) | All exemption types | Michigan Treasury RAB 2022-19 |
| MTC Uniform Sales and Use Tax Certificate | Yes | Resale exemptions only | Michigan Treasury RAB 2022-19 |
| SSUTA Certificate of Exemption | Yes | All exemption types | Michigan Treasury RAB 2022-19; Streamlined Sales Tax Governing Board |
Michigan has been a full member of the Streamlined Sales and Use Tax Agreement since October 1, 2005, per the Streamlined Sales Tax Governing Board. That membership is why the SSUTA certificate is valid here.
What Happens to Exemption Certificates in a Michigan Sales Tax Audit?
In an audit, the seller must produce a complete, valid certificate for every untaxed sale. Missing or incomplete certificates make the seller liable for the uncollected 6% tax plus penalties and interest. Under MCL 205.62 (Michigan Compiled Laws), a seller who accepts a properly completed certificate in good faith, or captures the required data within 120 days of the sale, is relieved of liability. A seller who accepts a certificate it knew was false is not protected.
The common audit failures are avoidable: incomplete fields on Form 3372, using a resale certificate for own-use items like office equipment, and lost or disorganized records.
How Should Sellers Manage Michigan Exemption Certificates?
Collect the certificate at the time of sale, validate every required field before accepting it, store it for the full four-year retention period, and re-collect blanket certificates before their coverage period lapses. Periodic re-collection is an industry best practice, not a Michigan legal requirement.
- Collect Form 3372 before completing the sale.
- Check every field: names, addresses, FEIN or license number, exemption reason, and signature.
- Store paper or digital copies securely for four years.
- Refresh blanket certificates before the four-year period ends.
How Commenda Handles Michigan Exemption Certificates for You
Commenda’s indirect tax software collects, validates, and stores Michigan exemption certificates and keeps them audit-ready alongside your sales tax filings. It connects to your systems through 100+ ERPs, APIs, and custom integrations, so certificate data lines up with your sales records. For Michigan rates, use the Commenda Michigan sales tax guide and the sales tax calculator, which looks up rates but does not check nexus exposure.
Book a demo for a free review of your exemption certificate exposure before Michigan Treasury audits it.
