Michigan Treasury Issues New Guidance on Sales Tax for Prepared Food Items

The Michigan Department of Treasury issued a revenue bulletin providing guidance on the sales and use tax treatment of food and prepared food items in Michigan. The bulletin, which updates and replaces RAB 2024-13, explains that while “food and food ingredients” for human consumption are exempt from tax under the Michigan Constitution, “prepared food intended for immediate consumption” is subject to tax, with criteria for determining when food items qualify as “prepared food”, along with specific exclusions and special provisions for vending machine sales, effective immediately upon approval. [Mich. Dep’t of Treasury, Administrative Bulletin 2026-2, 01/29/26]

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