Petitioner further contends that expert testimony from Mr. Joseph Romkema, a certified public accountant, and testimony from Harold Halstead, President of Spartan Cab, establish a clear audit trail to the conclusion that Spartan Cab was the purchaser of gasoline. Petitioner also points to the testimony of Respondent's witness Rex Pierce, audit supervisor for the State of Michigan, to show that it was in fact the purchaser of gasoline. Petitioner believes that the controversy stems from the Department of Treasury's disagreement with Spartan Cab's practice of holding taxicab drivers accountable for its largest operating cost. Petitioner asserts that nothing in MCL 207.112, the relevant administrative rules, or the revenue administrative bulletins prohibit the taxpayer from doing so. Respondent alleges that the taxicab drivers were the purchasers of the gasoline and the operators of the taxicabs, therefore, Spartan Cab is not entitled to the gasoline tax refund.
Petitioner disagrees with Respondent's position that the taxicab drivers purchased the gasoline.
Respondent points to the literal and plain meaning of Spartan's Taxicab Lease Agreement to show that the taxicab drivers were responsible for the entire cost of the gasoline purchased. Petitioner explained that the reason for the lease provision was to provide an incentive to minimize gasoline consumption, not to place the burden of purchasing gasoline on the taxicab drivers. Petitioner further explained that the amount of gasoline used was merely a component of the taxicab drivers' compensation formula. Respondent contends Petitioner is not entitled to a tax refund because it did not purchase all of the gasoline claimed on its tax return. The MTT disagrees with Respondent.