Michigan – Electricity distribution equipment qualifies for industrial processing sales/use tax exemption

Purchases of machinery and equipment used to distribute and process electricity qualified for the state’s industrial processing sales and use tax exemption. The Michigan Appellate Court found that a taxpayer’s transmission and distribution equipment provided industrial processing because it changed the form and character of electricity by increasing and decreasing the electricity’s voltage and by changing the electricity’s current. The court held that a contrary regulation was invalid and unenforceable.

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