Sign up for The Wire Newsletter!

Michigan Nexus


Seasoned Expediter
I am an owner who hired a driver from MI. Based on the 1099 sent to the driver, MI state found me and sent me a letter concerning Michigan taxes.
Reading through the papers I find the following: someone is considered to have physical presence in Michigan if "deliveres goods to Michigan in vehicles it owns, rents, leases, uses, or maintains". In expediting the one who owns the vehicle and the one that leases the vehicle are 2 separate entities. So who does this apply to?
Furthermore is states: "A company that has all of its goods delivered to purchasers in Michigan by an unrelated commom carrier will not have nexus with Michigan."

This scares the heck out of me. What are they saying? just because I deliver goods to Michigan I have to pay taxes to them? And how am I supposed to know when a driver delivers to Michigan?
Has anyone else seen something like this?
Last edited:


Veteran Expediter
In the short answer - NO.

This is something about the carrier and their customers because you represent the carrier and delivered under their authority.

But I would check with your accountant and have them contact Michigan for clarification based on your situation.


Veteran Expediter
Charter Member

If your home is based on Michigan, it is your responsibiity toi pay the michigan state tax, includiong city tax for'
battle creek, detroit kalamoozoo, lansing, and grand rapids, since I am not at my desk and in the hospital there i cannot give you the exaCT CITIES.

if you are not a residence a Michigan, the you only pay the state tax of where your home base is except
Florida, Tennessee, Texas, Nevada, Washington state, and there is one more,

If y9ou vehicle is registered in the state or Michigan, as I sad=id before you are reatponisibile even though the company may be basedf out of Michigan, YOU ARE AN OVER ROAD TRUCKER PERIOD