General Motors Corp. v. Department of Treasury

Plaintiff, General Motors Corporation (gm), appeals from the Court of Appeals decision that defendant, Department of Treasury, could impose use tax1 on the vehicle components and parts plaintiff provided to customers as part of plaintiff’s goodwill adjustments policy. We reverse the decision of the Court of Appeals and hold that assessment of use tax on the goodwill adjustments was improper because they were taxed pursuant to the General Sales Tax Act2 when customers purchased vehicles at retail.

I

When customers purchase new GM automobiles, they are provided with a GM limited manufacturer’s…