The Michigan Department of Treasury recently released guidance acquiescing in its interpretation of the term "materials and supplies" contained in the Michigan Business Tax to match the understanding reached in two recent Michigan decisions. The Department's revised interpretation of "materials and supplies" includes tangible personal property purchased in the tax year that is an ordinary and necessary expense to be used in carrying on a trade or business.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.