Exemptions based on status of purchaser:

• property purchased for resale, for demonstration, or for lend-lease to a public or parochial school offering drivers education;
• property of a nonresident brought into Michigan on a temporary basis and not used in non-transitory business activity for a period exceeding 15 days;
• property sold to the federal government or to an instrumentality thereof, the American Red Cross and its chapters and branches, and departments, institutions, or subdivisions of state government;
• property sold to nonprofit organizations used primarily for the organization's purposes;
• property sold to churches for noncommercial purposes and certain vans and buses used to transport persons for religious purposes;
• certain property sold to commercial radio and television station licensees;
• vehicles purchased in another state by nonresident active military personnel and upon which a sales tax was paid in the other state;
• vehicles not purchased for resale which are used by nonprofit corporations organized exclusively to provide a community with ambulance or fire department service;
• property donated by a manufacturer to certain tax exempt organizations;
• property purchased by a specified relative of seller;
• parts, excluding shop equipment and fuel, affixed to certain passenger and cargo aircraft owned or used by a domestic air carrier;
• the storage, use, or consumption of certain trucks, trailers, and parts affixed thereto used by interstate motor carriers.
• the storage, use, or consumption of a passenger or cargo aircraft purchased by, or leased to, a domestic air carrier with a maximum certified takeoff weight of at least 6,000 pounds.
• employees of resturaunts for food provided by their employer;
• motor vehicles, recreational watercraft, snowmobiles, or all terrain vehicles, and mobile homes sold to resident tribal members if the purchased item is for personal use and is to be used on the resident tribal member's tribe agreement area.

Exemptions based on item purchased:

• property which Michigan is prohibited by federal law from taxing;
• copyrighted motion picture films, newspapers, and periodicals classified as second class mail;
• vehicles purchased in another state and delivered to Michigan or purchased in Michigan but for use outside Michigan;
• hearing aids, contact lenses if prescribed for a specific disease precluding the use of eyeglasses, prosthetic devices, and eyeglasses prescribed by an ophthalmologist, optometrist, or optician;
• water delivered through water mains or bulk tanks of at least 500 gallons;
• certain components of water and air pollution control facilities;
• aircraft operating under a federal certificate which have a maximum takeoff weight of at least 12,500 pounds and used solely to transport cargo or commercial passengers;
• railroad cars, locomotives, and accessories;
• certain property purchased for resale as promotional merchandise;
• prescription drugs for human use;
• food for human use not prepared for immediate consumption;
• deposits on returnable beverage containers;
• international and WATS line telephone calls;
• commercial advertising elements;
• assessments for hotel or motel rooms imposed pursuant to accommodations taxes;
• partial exemption (from two percentage points of the tax rate): consumption for residential use of electricity, natural gas, and home heating fuel;
• prepaid telephone cards, prepaid authorization numbers, and charge for Internet access;
• storage, use, and consumption of investment coins and bullion;
• certain aircraft and aircraft parts temporarily located in Michigan.

Exemptions based on status of seller:

• property in corporate sponsor contracts sold by the organizing entity of the Ryder Cup, the Super Bowl, the Professional Golfers Association Championship, the men's college basketball championship, and the men's college hockey championship;

Exemptions based on transaction type:

• property upon which the Sales Tax has been paid;
• property upon which sales or use tax was paid in another state or local unit of another state if that tax was at least equal to the Michigan Use Tax and the other state has a reciprocal exemption for Michigan taxes paid;
• property, possession of which was taken outside Michigan and the value of which does not exceed $10 during one calendar month;
• certain food or tangible personal property purchased with federal food stamps;

Exemptions based on the use of the property or service:

• tangible personal property purchased by a person engaged in constructing, altering, repairing, or improving real estate if it is to be affixed or made a structural part of a sanctuary;
• property used in production of horticultural or agricultural products as a business enterprise;
• property used or consumed in industrial processing;
• specially-ordered commercial vessels of at least 500 tons engaged in interstate commerce, and fuel, provisions, and supplies therefor;
• certain machinery and equipment used to provide any combination of telecommunications services;
• certain products, equipment, machinery, and utilities used or consumed by an industrial laundry after December 31, 1997;
• computer equipment for data transfer by companies whose business includes publishing doctoral dissertations and information archiving and sells the majority of its products to non-profit organizations exempt from the federal income tax.