This month, we continue our “compare and contrast” blog series with a couple of Great Lakes states – Michigan and Wisconsin – specifically their treatment of technology items for sales tax purposes.
Here’s what you can discover:
- SaaS in Michigan vs. SaaS in Wisconsin:
- Michigan: SaaS is generally not subject to sales tax unless it involves downloadable software.
- Wisconsin: SaaS is non-taxable as long as the customer does not have physical access to the server or control over it.
- Software in Michigan vs. Software in Wisconsin:
- Michigan: Prewritten software delivered electronically is taxable; custom software delivered electronically is not taxable.
- Wisconsin: Prewritten software delivered electronically is taxable; custom software delivered electronically is not taxable.
- Digital Goods:
- Michigan: Digital products, such as e-books and music, are not taxable.
- Wisconsin: Certain digital products, like streaming video and digital audio works, are taxable.
- Sales Tax Holidays:
- Michigan: No sales tax holidays.
- Wisconsin: No sales tax holidays.
- Economy:
- Michigan: Renowned for its automotive industry, agriculture, and manufacturing, particularly in the Detroit metropolitan area.
- Wisconsin: Leading in dairy production and agriculture, especially cheese, cranberries, and ginseng, with a strong manufacturing sector focused on transportation and food processing.
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