Syntex Laboratories, Inc v. Department of Treasury

Respondent appeals as of right a Michigan Tax Tribunal judgment canceling a use tax assessment against petitioner and ordering a refund. At issue is whether imposing a use tax on petitioner’s promotional use of sample drugs violates art 9, § 8 of our state constitution. The Tax Tribunal held that it does. We agree and, therefore, affirm.

The Tax Tribunal decided this case on the following stipulated facts. Petitioner Syntex Laboratories, a Delaware corporation, is a drug manufacturer with its principal place of business in Palo Alto, California. Petitioner’s employees solicit sales of…