Do I have to pay sales tax on parts when leased to a carrier?

It's called the Rolling Stock Exemption. Here's Michigan: Michigan’s Rolling Stock Exemption - Avalara

Most states that have it will be similar.

If your truck is leased onto a motor carrier, you're covered.

 

You are exempt for sales tax on parts, as long as it's for the leased on truck. He specially asked about sales tax. I fill out a form and the vendor keeps it on file. Not asking about 2290 or income tax. But have known some that thought they were exempt from paying income tax. They were eventually educated.

 

Yes now I see. Here in TN we also have Sales Tax Exemption, for Interstate Commerce Motor Vehicles and Trailers, mostly the same as your rolling stock. When I purchased my used truck I used the exemption. Here in TN, I believe, its for the total of the truck and or trailer, if you meet the requirements. I don't think we have the exemption for the "parts", I could be wrong. I see in MI, you can deduct for bungee cords and chain binders, that is what I couldn't understand to not pay tax on parts. Does that mean you don't pay state tax on tires? they are affixed to the truck. How about if you buy a door or windshield, no tax? I'm just curious. Like I said here in TN we also have it if the equipment is over 16K pounds of above used in interstate and leased on to a carrier with IRP. I learn something new everyday. Thanks

 

In Mi. A Truck, or any parts, supplies, etc. is exempt.Not all states have the exemption, I didn’t know Tn. Had it, they always charge me at Dealer. Mi. has had it since, late 90s, as Truck Dealers lobbied for it,because of losing sales to Indiana, Ohio and Illinois. The forms I’ve used I always put my Co. Info, EIN# and designate Rolling stock. I was at a Wal mart recently, and someone was using it. I need to look into that, as many vendors claim they don’t participate. BS, I think it’s the law. Going to investigate further, when I get time, Lol. I use it at Tractor Supply always. Same as the Farmers do, for all supplies.Your lease agreement supports your Exemption, if ever challenged.

 

I have over the years, been contacted by vendors, needing a form filled out, due to them either losing the original, or not having a current one on file.They were obviously being audited.Seems it’s more of a liability ( proof) for them, not Us.