Detroit Edison Company v. Department of Treasury

The Use Tax Act (UTA), MCL 205.91 et seq., imposes a 6% tax “for the privilege of using, storing, or consuming tangible personal property in this state . . . .” MCL 205.93(1). However, the UTA exempts from the use tax property sold to “[a]n industrial processor for use or consumption in industrial processing.” MCL 205.94o(l)(a). At issue here is whether and to what extent, if any, an electric utility is entitled to the industrial-processing exemption for tangible personal property located outside its generation plants. The Court of Appeals held that plaintiff was entitled to the full…