Midamerican Energy Company v. Department of Treasury

SAAD, EJ.

I. NATURE OF THE CASE

This tax appeal involves the applicability of the industrial-processing exemption 1 to the General Sales Tax Act (the Act). 2 In sum, the industrial-processing exemption to the sales tax, MCL 205.54t, can only be granted to taxpayers engaged in “industrial processing.” A taxpayer is only engaged in industrial processing when it (1) modifies “tangible personal property” 3 for sale 4 to consumers or (2) uses tangible personal property to produce wholly new tangible personal property for sale to consumers. For the taxpayer to receive the industrial-processing…