Some tax break likely in dispute over flow of electricity

LANSING (AP) - In a dispute over the flow of electricity, the Michigan Supreme Court says DTE Energy is entitled to some tax break after power leaves a generating station. DTE sued the state, seeking a refund of more than $13 million. It claimed it was totally exempt from a 6 percent tax on certain equipment outside the generating plants. In a 4-3 decision Wednesday, the Supreme Court says some exemption applies because electricity isn't a "finished good" until it reaches customers. The court sent the case back to the Court of Claims for more work. In a dissent, Justice Mary Beth Kelly says DTE's delivery of electricity doesn't qualify for a tax break. She says electricity is complete when it leaves the station, and equipment used to distribute it isn't tax-exempt. Published: Fri, Jul 24, 2015