TOMRA of North America, Inc. v. Department of Treasury, 505 Mich. 333

Summary

The Michigan Supreme Court held that TOMRA of North America’s container-recycling machines and repair parts qualified for Michigan’s industrial-processing tax exemptions. The Court ruled that the temporal limitation in the general definition of industrial processing does not apply to the separately enumerated industrial-processing activities. It also held that the strict-construction canon for tax exemptions was inapplicable because the relevant statutes were unambiguous, and affirmed and remanded for further proceedings.

Holdings

1. The temporal limitation in MCL 205.54t(7)(a) and MCL 205.94o(7)(a) does not apply to the specific industrial-processing activities enumerated in MCL 205.54t(3) and MCL 205.94o(3).
2. The judicial canon requiring tax exemptions to be strictly construed against the taxpayer is a canon of last resort and does not apply when the statute is unambiguous.
3. TOMRA's sales of container-recycling machines and repair parts were not categorically excluded from the industrial-processing exemptions merely because the machines operated outside the temporal period in the general definition.

Questions Presented

1. Whether the temporal limitation in MCL 205.54t(7)(a) and MCL 205.94o(7)(a) applies to the enumerated industrial-processing activities in MCL 205.54t(3) and MCL 205.94o(3).
2. Whether the judicial canon requiring strict construction of tax exemptions applies when the relevant exemption statutes are unambiguous.
3. Whether TOMRA's container-recycling machines and repair parts could qualify for the industrial-processing exemptions despite operating outside the general temporal period.

Disposition

affirmed