Recycling Sorters Get Sales Tax Break from Michigan High Court

June 16, 2020, 9:42 PM

The maker of a popular machine used for recycling bottles and cans was improperly denied a sales tax exemption for manufacturing and processing devices, the Michigan Supreme Court ruled Tuesday.

The Michigan Department of Treasury denied roughly $700,000 in sales and use tax breaks for TOMRA of North America, Inc. from March to December of 2011. The company sued, arguing its “reverse vending machines” that help grocery stories sort returned bottles and cans should be eligible for the state’s exemption because they’re part of the recycling process.

The Michigan Supreme Court unanimously rejected Treasury’s argument that the machines didn’t ...

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