Nacg Leasing v. Department of Treasury

The issue in this case is whether the execution of a lease of tangible personal property in Michigan constitutes “use” for purposes of the Use Tax Act (UTA). Petitioner, a Michigan corporation, purchased an aircraft from one company and immediately executed a five-year lease to another company that already had possession of the aircraft. The Department of Treasury assessed a use tax against petitioner based on the lease transaction, and the Michigan Tax Tribunal ultimately upheld the assessment. The Court of Appeals reversed, holding that petitioner did not “use” the aircraft because it ceded…