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Article: Update on Michigan Supreme Court sales tax decision for Catalina Marketing.
- Article from:
- Tax Executive
- Article date:
- July 1, 2005
- Author:
CopyrightCOPYRIGHT 2005 Tax Executives Institute, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In the July-August 2004 issue of The Tax Executive, we wrote about the Michigan Supreme Court decision in Catalina Marketing. (1) In that May 2004 decision, the court held that a different test applied for determining the taxability of "mixed" transactions for sales and use tax purposes than the one promulgated by the Department of Treasury. Before Catalina, the Department used the "real object" test, described in a 1995 Revenue Administrative Bulletin (RAB), (2) to determine taxability when a transaction involves both the provision of services and the transfer of tangible personal property. Both the Michigan Tax Tribunal and the Court of Appeals applied the real object ...