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Although not part of the final product, the use of reusable containers in a manufacturer's assembly line that improved the efficiency of the line were found to be exempt from Michigan use tax since they were viewed as part of the manufacturing process. The containers were found to be exempt under the industrial processing exemption regardless of the fact that the containers were also used for storage and transport, which are considered taxable uses of property in Michigan. (Michigan Court of Appeals, No. 238096, 2003 Mich. App. LEXIS 975, April 15, 2003.)


Effective December 23, 2002, the Revenue Division within the Michigan Department of Treasury was eliminated, for purposes of all Michigan taxes administered by the state. The responsibilities currently attached to the Revenue Division are reassigned to the Department of Treasury as a whole. The position of Revenue Commissioner has also been eliminated. (Act 657 (S.B. 1446), Laws 2002)


A taxpayer was found to be liable for Michigan use tax when the plane they were selling was also used in a charter flight service. In Michigan, property for resale is not typically eligible for the use tax. However, in this case the taxpayer used the aircraft for other than demonstration purposes and failed to obtain the proper dealer's registration. (Corporate Flight, Inc. v. Department of Treasury, Michigan Court of Appeals, No. 233602 (unpublished opinion), November 22, 2002)



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