If a maintenance agreement is required as part of the purchase of taxable prewritten software and includes future updates or enhancements, the entire cost is generally taxable . Optional Agreements:
Specific charges for technical support or for adapting prewritten software to a user's needs are exempt if they are separately stated and identified on the invoice. Michigan Sales Tax On Software Maintenance
Agreements that strictly provide services like troubleshooting, technical assistance, or helpdesk access are generally exempt from tax. If a maintenance agreement is required as part
Maintenance contracts for custom software (designed for a specific user's needs) are generally considered non-taxable services. Critical Factors and Exemptions Michigan Sales Tax On Software Maintenance