Betten Auto Center, Inc. v. Department of Treasury

In this tax dispute, defendant appeals as of right an order granting summary disposition in favor of plaintiffs pursuant to MCR 2.116(0(10). The issue is whether vehicles purchased by plaintiffs for resale and used by plaintiffs’ employees before the vehicles were resold were subject to a use tax imposed by the Use Tax Act, MCL 205.91 et seq., or whether the vehicles fell within the resale exemption to use taxation under MCL 205.94(l)(c). We affirm in part, reverse in part, and remand.

From October 1999 to September 2003, plaintiffs, all licensed automobile dealerships selling both new and…