Sims v. Firestone Tire & Rubber Co.

Plaintiffs paid a "sales tax” on services rendered by Ned’s Auto Supply Company and brought a class action against Ned’s and the Firestone Tire & Rubber Company.1 The Court of Appeals in affirming the Wayne Circuit Court’s order dismissing the action held that the General Sales Tax Act and administrative orders authorize such a practice and that the defendants were not unjustly enriched because they transmitted the funds to the State of Michigan. 56 Mich App 440 (1974). We granted leave to appeal. I find that the statute does not authorize the imposition of a "sales tax” on services and that…