World Book, Inc v. Department of Treasury

In this tax dispute, plaintiff World Book, Inc., appeals from a Court of Appeals decision in favor of defendant Revenue Division of the Depart ment of Treasury, state of Michigan. We are asked to decide two issues. The first is whether plaintiffs sales transactions involving Michigan customers are properly taxable under Michigan’s Use Tax Act 1 as opposed to Michigan’s General Sales Tax Act. 2 The second is whether, assuming the Use Tax Act applies, the absence of a bad debt deduction in the act results in a violation of the Commerce Clause of the United States Constitution. US Const, art I,…