Total Petroleum, Inc v. Department of Treasury

This case involves an appeal as of right from a Michigan Tax Tribunal decision upholding a single business tax assessment of $27,825 plus accrued interest for the tax years 1977 through 1980. Petitioner disputes the inclusion of certain "leasehold bonus costs” in its single business tax base.

As an oil and gas producer and refiner, petitioner enters into leases for the exploration and *419development of oil and gas reserves upon the lands of others. Prior to entering into such leases, petitioner conducts preliminary exploration work and undertakes title searches. Lease negotiations are pursued…