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Michigan Tax Tribunal finds drugs, implants and office supplies constitute materials and supplies for MBT purposes

The Michigan Tax Tribunal has held that a taxpayer’s purchase of drugs, implants and office supplies constitutes materials and supplies that may be included as purchases from other firms for purposes of calculating the modified gross receipts tax base component of the Michigan Business Tax (MBT). In its decision granting summary disposition for the taxpayer, the Tax Tribunal rejected efforts by the Michigan Department of Treasury to narrow the scope of materials and supplies to materials and supplies supporting inventory or depreciable property.