Michigan Court Affirms Sales Tax Ruling on Automotive Labor Charges

The Michigan Court of Appeals affirmed the lower court’s decision granting summary disposition to the Department of Treasury in a sales tax dispute. The case involved an audit of an automotive service business that claimed significant sales tax exemptions on labor charges for oil changes and maintenance. The court found that the taxpayer failed to properly itemize labor charges on invoices and financial documents as required by statute to qualify for the exemptions. The court upheld the Department’s tax assessment based on an indirect audit, emphasizing that the burden of refuting the assessment rests with the taxpayer. [Sav-Time, Inc. v. ...