Compupharm-LTC v. Department of Treasury

Petitioner appeals as of right an order of the Michigan Tax Tribunal. Petitioner is a pharmaceutical corporation that sells medical supplies and drugs to nursing homes. Const 1963, art 9, § 8 and MCL 205.54g(1); MSA 7.525(7)(1) exempt sales of prescription drugs from sales tax. Petitioner claimed that its sales of over-the-counter drugs to nursing home patients were exempt from the Michigan sales tax because they could only be dispensed to those patients under state Medicaid rules with a physician’s prescription. Petitioner also asserted that the imposition of a sales tax on drugs and medical…