How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ed Johnson Your Own Question
Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience:  GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
Type Your Tax Question Here...
Ed Johnson is online now
A new question is answered every 9 seconds

Mich Sales tax on Mobile phone service

Resolved Question:

My cell phone company is located out West somewhere ( they keep their address under cover all contacts are by phone) The company is Virgin Mobile. They charge my credit card 6% Michigan sales tax for their monthly service charge.
        (1) Isn't Phone service a "service" Mich. Sales tax is not on services how come they are collecting it? Is this legal?
        (2) Are they turning in this money?
Submitted: 10 years ago.
Category: Tax
Expert:  Ed Johnson replied 10 years ago.


They really are not charging sales tax. They are charging use tax. Sales tax is on tangible property. However, michigan and others have a use tax which is charged for services and tangible product purchased outside the state for use in Michigan. The rate is the same as sales tax. The correct sales tax terminology in Michigan law is Sales and Use TAx.

The only way you can know if they are paying, is to check with the Michigan Sales tax deivision of the treasurery and ask them.

You can also demand that you be provided a copy of the sales tax certificate for Virgin Mobile (demand it of Virgin Mobile, not the treasurey).

Ed Johnson and 2 other Tax Specialists are ready to help you