Michigan Dental Lab Fails to Prove Sales Tax Exemption on Appeal

A dental manufacturer provided insufficient proof that its products were wholly exempt from state sales tax, a Michigan appeals court said, affirming a lower court decision.

LaDouce Dental Laboratory Co., which manufactures custom-ordered dental products for practitioners who then resell those products to patients, said the Michigan Department of Treasury had improperly assessed the manufacturer’s sales tax liability for 2017 and 2018 because their products qualified for a resale exemption.

On Monday the Michigan Court of Appeals sided with the tax department’s determination that LaDouce didn’t provide sufficient documentation to claim a total sales tax exemption.

LaDouce pointed to Michigan’s ...