Michigan does not issue a Michigan resale certificate online through a single portal. The process has two parts: register online for a Michigan sales tax license through Michigan Treasury Online, then download Form 3372, the Michigan Sales and Use Tax Certificate of Exemption, fill it out, and hand it to each supplier you buy from. Your suppliers then sell to you without charging the state’s 6% sales tax on items you plan to resell.1Michigan Department of Treasury. Sales and Use Taxes
What the Certificate Is For
Michigan charges 6% sales tax on retail sales of tangible personal property.1Michigan Department of Treasury. Sales and Use Taxes Under the General Sales Tax Act, a retail sale is a sale for any purpose other than resale.2Michigan Legislature. Michigan Compiled Laws 205.51 Inventory and raw materials you’re buying to resell don’t count as retail purchases, so sales tax shouldn’t apply.
Your supplier has no way of knowing that on its own. Form 3372 is how you tell them. By giving a completed form to a vendor, you’re declaring under penalty of law that the purchase qualifies for the exemption. The vendor keeps it on file, and the eventual retail customer is the one who pays sales tax on the finished product.3Michigan Department of Treasury. Michigan Sales and Use Tax Certificate of Exemption
Step 1: Register Online for a Sales Tax License
You need a Michigan sales tax license number before you can claim the resale exemption. That number goes on every Form 3372, and most suppliers will refuse an exemption claim without it. The license itself is free.4Michigan Department of Treasury. Sales Tax License FAQ
Registration happens through the Department of Treasury’s Online New Business Registration. You’ll get a confirmation number when you submit, and the license typically arrives within about seven business days.5Michigan Department of Treasury. Online Business Registration
Have these ready before you start:
- Your Federal Employer Identification Number (EIN)
- Your business entity type
- Physical and mailing addresses for the business
- The name and Social Security number or ITIN of the responsible party
If you don’t have an EIN yet, the IRS issues one for free through its online application, and the number is assigned immediately.6Internal Revenue Service. Get an Employer Identification Number
Step 2: Fill Out Form 3372
Form 3372 is a fillable PDF you download from the Michigan Department of Treasury website. You do not send it to the state. You complete it and give it directly to each vendor you’re buying tax-exempt inventory from.7Michigan Department of Treasury. Michigan Sales and Use Tax Certificate of Exemption
All four sections have to be filled in for the certificate to be valid:3Michigan Department of Treasury. Michigan Sales and Use Tax Certificate of Exemption
- Seller information: the name and address of the vendor you’re buying from.
- Reason for exemption: for resale purchases, select “For Resale at Retail” and enter your sales tax license number.
- Scope: whether the certificate covers a single purchase or works as a blanket certificate for all qualifying purchases from that vendor.
- Purchaser information: your business name, address, signature, and date. If the form is delivered electronically, a signature is not required.
A blanket certificate saves paperwork if you buy from the same supplier regularly. One form covers every qualifying purchase from that vendor going forward. Just remember it only covers items you’re actually reselling. Using it to buy things you’ll consume in your own operations creates a tax problem you’ll have to answer for later.
Single Purchase or Blanket?
For a one-time buy from a wholesaler you may never use again, a single-purchase certificate is cleaner. For your regular distributors, a blanket certificate is standard. Many suppliers will ask which one you want when you first open an account with them.
Other Certificate Formats Michigan Accepts
Form 3372 is not the only option. Michigan also accepts two other formats:8Michigan Department of Treasury. Exemptions FAQ
- The Multistate Tax Commission’s Uniform Sales and Use Tax Certificate, useful if you buy from vendors in several states and want one form they’ll all recognize.
- The Streamlined Sales and Use Tax Agreement Certificate. Michigan is a full member of the Streamlined Sales Tax Agreement, so vendors in other member states should accept it.9Streamlined Sales Tax Governing Board. Home
All three ask for the same core information: business details, sales tax license number, and the reason for the claim. Which one to use usually comes down to what your vendors prefer.
Keeping Records and Updating Your Certificate
Keep a copy of every Form 3372 you issue, along with the related purchase orders, invoices, and sales records. Michigan’s rules require sales and use tax records to be preserved for as long as the tax assessment period remains open, which is generally four years from when the return was filed or due.10Legal Information Institute. Michigan Admin Code R. 205.4113 – Records Retention-Time Period Digital copies are fine as long as they’re legible and you can pull them up on request.
If your business name, address, ownership, or license number changes, update your records through Michigan Treasury Online and send fresh certificates to your regular suppliers.11Michigan Treasury Online. Michigan Treasury Online An outdated certificate can be treated as invalid during an audit, and the underlying transactions can be reclassified as taxable. Vendors whose files show a license number that doesn’t match Treasury’s records lose their audit protection on those sales, which is why you’ll sometimes get a call asking you to resubmit.
What the Certificate Is Not For
A resale certificate covers items you buy to resell. It does not cover office furniture, cleaning supplies, equipment you’ll use in your own warehouse, or anything else you’ll consume in running the business. Using it on those purchases is a misdemeanor under Michigan law. A first offense carries a minimum fine of $500 plus prosecution costs. A second or subsequent offense runs from $500 to $5,000 in fines, up to one year in jail, or both.12Michigan Legislature. Michigan Compiled Laws Chapter 205
On top of criminal exposure, an improper claim makes you liable for the full unpaid tax plus interest and civil penalties.7Michigan Department of Treasury. Michigan Sales and Use Tax Certificate of Exemption Form 3372 spells out that you accept “full responsibility for the payment of tax, penalty and any accrued interest, including, if necessary, reimbursement to the vendor.” Signing the form puts that liability on you personally. The most common problems are not fraud but sloppiness: an employee uses the company’s certificate for supplies the business consumes. Training whoever handles purchasing on what qualifies is the simplest fix.