What are the laws regarding sales tax on newspaper components?
Briefly, any newsprint or ink that becomes a component part of a newspaper is exempt from sales or use tax. Here is the state law on the issue: MCLA 205.54a. Deductible sales Sec. 4a. A person subject to tax under this act may exclude from the amount of the gross proceeds used for the computation of the tax, a sale of tangible personal property: (g) To the following: (i) An industrial processor for use or consumption in industrial processing. Property used or consumed in industrial processing does not include tangible personal property permanently affixed and becoming a structural part of real estate; office furniture, office supplies, and administrative office equipment; or vehicles licensed and titled for use on public highways, other than a specially designed vehicle, together with parts, used to mix and agitate materials added at a plant or jobsite in the concrete manufacturing process. Industrial processing does not include receiving and storage of raw materials purchased or extra
