• Appointment of Agent form (TR-128)
  If an individual purchasing a vehicle is not available to sign the RD-108 and completes an Appointment of Agent form to have an agent sign the RD-108 on their behalf, the purchaser must provide a photocopy of their valid Michigan driver's license or state ID card. Please refer to the Dec. 2, 2012 issue of Fast Facts or call MADA at (800) 292-1923 for more information. View the form online here.

• Cash transactions

Any transaction involving $10,000 or more in cash must be reported to the Internal Revenue Service (IRS) by completing FinCen Form 8300. This is revised version of the Cash Reporting Form due to the passage of the USA Patriot Act of 2001. You may obtain a copy of the form by clicking on www.irs.gov/pub/irs-pdf/f8300.pdf.

• Damage disclosure

Dealers must disclose damage to the consumer if the amount exceeds 5 percent of the Manufacturer's Suggested Retail Price (MSRP) or $750 for surface coating repairs, corrosion restoration or a combination of the two. The disclosure must be made before the consumer signs the RD-108.

• Car shuttlers and the Michigan unemployment tax
  View an article from Ed Castellani with Fraser Trebilcock here. Article overview: the MESC has acknowledged that although the MESC policy is that car shuttlers are employees, a car shuttler may nevertheless qualify as an independent contractor. In making its determination, the MESC will look at all of the facts and circumstances of each case to determine whether a car shuttler is an employee or an independent contractor.

• Demo Affidavit form (Form 137)

MADA offers our members this Demo Affidavit form (for calendar year 2012).  The form is set up so you can fill it out online then print. Please note that there are two pages and it is designed to be printed as a two-sided document.

• Documentary processing fees

OFIR has determined, after reviewing the consumer price index, the doc fee will remain at $190.00 for 2011 and 2012. It will be reviewed again in January 2013.
**Doc fee handout from MADA**

• National Automobile Dealers Charitable Foundation grants

• Road Safety Grant Program.  This program supports dealer community involvement in educating customers about road safety issues.
• CPR Training Unit medical grants.  This program provides CPR training manikins to organizations in all 50 states and the District of Columbia.

• Passenger van: restrictions on the sale/lease of an 11 - 15 passenger van

Dealerships are prohibited from selling or leasing these vehicles to public, parochial or private schools if children are to be transported to and from school or school related activities. This rule applies to the "renting" of these vans.

• Salary compensation comparisions (NADA study)

NADA publishes a Salary Compensation Study that provides data on trends in compensation and fringe benefits for nine regions. Included are new positions - BDC manager, IT/network manager, HR director, training manager, Internet sales manager, executive administrator, and receptionist. Truck data is also included. It is available to NADA members at www.nadauniversity.com.

• Sunday sales

Sunday sales are prohibited in some counties. Michigan Public Act 66 of 1953 prohibits dealerships located in counties with a population of more than 130,000 from doing business on Sunday. The act prohibits the opening of any retail or wholesale new and used vehicle business from engaging in business (i.e. buy, sell, exchange, trade or participate in negotiation) on Sunday. It also applies to vehicle leasing. The following counties are currently PROHIBITED from doing business on Sunday: Berrien, Calhoun, Genesee, Ingham, Jackson, Kalamazoo, Kent, Livingston, Macomb, Monroe, Muskegon, Oakland, Ottawa, Saginaw, Saint Clair, Washtenaw and Wayne.

• Tax: buyers who will register the vehicle in another state

Sales tax must be collected on vehicles bought and delivered in Michigan for titling and registration in another state. Please click here for a summary from the Michigan Department of Treasaury.

• Tax: Native American sales

The Michigan Department of Treasury revised its policy in 2003. Under the new rules, tribal government entities and individual Native Americans whose communities have "Tribal Agreements" with the Department of Treasury may make tax-exempt purchases of vehicles if they provide a Tribal Exemption Certificate (Form 3998) and a letter of authorization from the State of Michigan. MADA members may access additional information on this topic.

• Vehicle Dealer Supplemental Form

The Michigan Vehicle Dealer Supplemental Report Form 92 provides dealers with a sales tax credit. It should be filed with the Department of Treasury in conjunction with your Combined Return for Michigan Taxes Form 160. Go to www.michigan.gov/documents/92f_4862_7.pdf to download this form and its instructions.

• State of Michigan licensing issues

• State of Michigan web links

• Federal compliance topics and resources