- Michigan and Wisconsin have different treatments of technology items for sales tax purposes
- SaaS in Michigan is generally not subject to sales tax unless it involves downloadable software, while in Wisconsin it is non-taxable if the customer does not have physical access to the server
- Prewritten software delivered electronically is taxable in both Michigan and Wisconsin, but custom software delivered electronically is not taxable in Michigan
- Digital goods like e-books and music are not taxable in Michigan, but certain digital products are taxable in Wisconsin
- Both states do not have sales tax holidays
- Michigan is known for its automotive industry, agriculture, and manufacturing, while Wisconsin leads in dairy production and agriculture
- Cloud computing services are likely nontaxable in Michigan, while SaaS arrangements are nontaxable with exceptions in Wisconsin
- Prewritten computer software sold electronically is subject to sales and use tax in Michigan, but custom software is not taxable
- Prewritten computer software delivered electronically is taxable in Wisconsin as tangible personal property
Source: taxconnections.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
