General dealer questions & forms
Please see the following for answers to some of the more common questions we hear from dealers. If you have a question that is not answered here, or if you would like more information about any topic, please call our office at (800) 292-1923.
Dealers are reminded that the National Highway Traffic Safety Administration (NHTSA) offers a search tool to determine if a vehicle has an open recall. This resource is available online at www.SaferCar.gov.
This is an excellent tool dealers should use on the day of sale for any used vehicle. The report will either show no open recalls, or it will display a list of any outstanding recalls. Dealers may want to print a copy for the customer and the dealer’s deal jacket.
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. View the form online here.
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.
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.
Demo Affidavit form (Form 137)
MADA offers our members this demo affidavit for calendar year 2019 or calendar year 2020. 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.
Legislation regulating Michigan dealerships
- Regulation of Motor Vehicle Manufacturers, Distributors, Wholesalers, And Dealers (Act 118 of 1981)
- Motor Vehicle Service and Repair Act (Act 300 of 1974)
- Michigan Vehicle Code (Act 300 of 1949)
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.
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 Treasury.
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 3996) and a letter of authorization from the State of Michigan. More information here.
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.