Michigan Container Exemption

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.)

Posted on April 15, 2003