Michigan does not tax digital goods. Software is taxable. If a business has a physical presence in a state, it must collect sales tax; if not, no need to collect sales tax.
State Sales Tax Rate
The state sales tax rate is 6% statewide. You must pay 6% use tax to Michigan on out-of-state purchases not charged sales tax. Compliance with the use tax has been low.
Recent Changes and Compliance
Under new rules, out-of-state online retailers must pay 6% Michigan sales tax on sales made after September 30, 2018, to create a fair, level playing field. Compliance issues have led to the state collecting from out-of-state companies, potentially passing the cost to consumers.
Impact on Large Online Retailers
Large online retailers in Michigan must now collect and remit the 6% sales tax, bringing parity with local businesses and expected annual revenue of about $60 million.
Use Tax Regulations
Michigan residents should pay 6% use tax on online, mail order, or out-of-state purchases. Items brought into Michigan for storage, use, or consumption may be subject to 6% Michigan Use tax. However, credit is given for any sales or use tax that is legally due and paid in another state at the time of purchase.
Unfortunately, I do not have enough context to determine if groceries are tax-exempt in Michigan based on the provided text. If you need information on tax exemptions for groceries, please provide more details.