Cook v. Department of Treasury

In these consolidated appeals, the Michigan Department of Treasury (defendant) challenges orders issued by the Court of Claims in favor of the plaintiff taxpayers. We reverse.

Plaintiffs are involved in oil and gas exploration and development. They filed personal income tax returns and Michigan severance tax returns for several years before the issuance of Bauer v Dep’t of Treasury, 203 Mich App 97; 512 NW2d 42 (1993). Before Bauer, defendant treated oil and gas revenues as taxable under the Michigan Income Tax Act (ita), MCL 206.1 et seq.; MSA 7.557(101) et seq. In Bauer, this Court concluded…