Answer - Final.pdf
Binson's Hospital Supplies, Inc. Petitioner Vs. Michigan Department Of Treasury Respondent · 26-001081-TT
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STATE OF MICHIGAN DEPARTMENT OF ATTORNEY GENERAL P.O. BOX 30754 LANSING, MICHIGAN 48909 DANA NESSEL ATTORNEY GENERAL October 15, 2026 Via Electronic Filing Michigan Tax Tribunal Attn: Samantha M. Welton, Chief Clerk 611 W. Ottawa Street, 4th Floor P.O. Box 30232 Lansing, MI 48909 Re: Binson’s Hospital Supplies, Inc. v Michigan Dep’t of Treasury Michigan Tax Tribunal Docket No. 26-001081-TT Dear Ms. Welton: Enclosed for submission, please find Respondent Michigan Department of Treasury’s Answer to Petition and Affirmative Defenses and Proof of Service, in regard to the above referenced case. If you should have any questions relative to the enclosures, please do not hesitate to contact our office. Very truly yours, /s/ Wesley M. Margeson Wesley M. Margeson (P81232) Jadranko J. Tomic Bobas (P75494) Assistant Attorneys General Michigan Dep’t of Attorney General Revenue and Tax Division (517) 335-7584 WMM/JJTB/rkg Enclosures cc: Brandon K. Fasse, w/enclosures (via First-Class U.S. Mail)
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STATE OF MICHIGAN DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS MICHIGAN TAX TRIBUNAL BINSON’S HOSPITAL SUPPLIES, INC., Petitioner, v MICHIGAN DEPARTMENT OF TREASURY, Respondent. MTT Docket # 26-001081 / Fasse Law PLLC Brandon K. Fasse (P80370) Attorney for the Petitioner 25790 Commerce Dr. Suite 110 Madison Heights, MI 48071 (800) 604-5386 Brandon@fasselaw.com Wesley M. Margeson (P81232) Jadranko J. Tomic Bobas (P75494) Assistant Attorneys General Michigan Dep’t of Attorney General Revenue and Tax Division Attorneys for Respondent P.O. Box 30754 Lansing, MI 48909 (517) 335-7584 MargesonW@michigan.gov TomicBobasJ@michigan.gov / RESPONDENT MICHIGAN DEPARTMENT OF TREASURY’S ANSWER TO PETITION AND AFFIRMATIVE DEFENSES NOW COMES Respondent, MICHIGAN DEPARTMENT OF TREASURY (Treasury), through counsel, Assistant Attorneys General Wesley M. Margeson and Jadranko J. Tomic Bobas, and states for its answer to the petition as follows: 1. Treasury neither admits nor denies the allegations of this paragraph, as same contains assessments numbers issued by Treasury. To the extent that a
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2 response is required, Treasury admits that this paragraph contains Treasury assessment numbers. 2. Treasury admits that it audited Petitioner for sales tax for the period July 1, 2020, through December 31, 2023. 3. Treasury neither admits nor denies the allegations of this paragraph, as same contains Petitioner’s contentions of the issues in this appeal. To the extent that a response is required, Treasury denies that it assessed Petitioner any penalty, denies that Petitioner is entitled to any relief, and states that Treasury’s determination is valid, proper, and lawful. 4. Treasury only admits that it issued a Decision and Order of Determination to Petitioner dated March 20, 2026, in Informal Conference Docket No. 2025-1111. 5. Treasury neither admits nor denies the allegations of this paragraph because Treasury lacks knowledge or information sufficient to form a belief as to the truth of the matter asserted and leaves Petitioner to its proofs. 6. Treasury admits that it has assessed Petitioner tax and interest, but states that Treasury did not assess penalty, and further states that the amount of tax interest, and penalty, as stated on Final Assessments, are as follows, and further states that interest continues to accrue:1 1 Treasury has attached copies of the Final Assessments in compliance with TTR 235(5). See Ex A. Because Petitioner filed this case after Treasury issued a Decision and Order of Determination, Treasury also attaches that document. See Ex B.
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3 Final Assessment No. Year Tax Interest Penalty 1506997 2020 $62,843.70 $1,719.54 $0 1759632 2021 $164,938.92 $45,089.65 $0 1759637 2022 $152,631.00 $34,877.44 $0 1507021 2023 $134,476.54 $25,402.29 $0 Total $514,890.16 $107,088.92 $0 7. Treasury neither admits nor denies the allegations of this paragraph, as this paragraph contains Petitioner’s request for relief, to which no response is required. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. 8. Treasury neither admits nor denies the allegations of this paragraph, as this paragraph contains Petitioner’s contentions of the amounts in dispute, to which no response is required. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. 9. Treasury neither admits nor denies the allegations of this paragraph, as this paragraph contains Petitioner’s request for relief, to which no response is required. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful.
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4 10. The allegations in this paragraph are contained within a separate attachment, and Treasury responds in the following paragraphs to those allegations. TREASURY’S RESPONSES TO ATTACHMENT A RESPONSES TO SECTION I 1. Treasury incorporates its responses to the preceding paragraphs into the following paragraphs of its answer as if fully written herein. Treasury neither admits nor denies the allegations of this paragraph because same constitutes a legal conclusion that does not require a response under the Michigan Court Rules and because MCL 205.22 speaks for itself. Treasury only admits that it issued a Decision and Order of Determination to Petitioner dated March 20, 2026, in Informal Conference Docket No. 2025-1111. By way of further answer, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. 2. To the extent that the allegations of this paragraph reference the March 20, 2026 Decision and Order of Determination, Treasury neither admits nor denies the allegations because the Decision and Order of Determination speaks for itself. This paragraph also contains Petitioner’s statement concerning what it contests, to which no response is required. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful.
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5 3. Treasury neither admits nor denies the allegations of this paragraph, as the allegations reference the contents of the Decision and Order of Determination, which speaks for itself. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. 4. Treasury neither admits nor denies the allegations of this paragraph, as this paragraph contains Petitioner’s request for relief, to which no response is required. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. RESPONSE TO SECTION II 5. Treasury incorporates its responses to the preceding paragraphs into the following paragraphs of its answer as if fully written herein. To the extent that this paragraph concerns factual allegations concerning Petitioner’s business operations, Treasury neither admits nor denies the allegations of this paragraph because it lacks knowledge or information sufficient to form a belief as to the truth of the matter asserted and leaves Petitioner to its proofs. To the extent that this paragraph contains allegations concerning the contents of the Informal Conference Recommendation, Treasury neither admits nor denies those allegations, as that document speaks for itself. 6. Treasury neither admits nor denies the allegations of this paragraph, as this paragraph contains Petitioner’s contentions of what is at issue in this case
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6 and legal conclusions, to which no response is required. To the extent that this paragraph contains factual allegations concerning any items at issue, Treasury neither admits nor denies the allegations of this paragraph because it lacks knowledge or information sufficient to form a belief as to the truth of the matter asserted and leaves Petitioner to its proofs. 7. To the extent that the allegations of this paragraph reference the Informal Conference Recommendation, Treasury neither admits nor denies the allegations of this paragraph because that document speaks for itself. To the extent that the allegations of this paragraph contain legal conclusions, Treasury neither admits nor denies the allegations as no response is required under the Michigan Court Rules. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. 8. To the extent that this paragraph contains factual allegations concerning any items at issue, Treasury neither admits nor denies the allegations of this paragraph because it lacks knowledge or information sufficient to form a belief as to the truth of the matter asserted and leaves Petitioner to its proofs. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. RESPONSE TO SECTION III 9. Treasury incorporates its responses to the preceding paragraphs into the following paragraphs of its answer as if fully written herein. Treasury neither
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7 admits nor denies the allegations in the first sentence of this paragraph, as it cites a statute, which speaks for itself. Treasury neither admits nor denies the allegations in the second sentence of this paragraph because it lacks knowledge or information sufficient to form a belief as to the truth of the matter asserted and leaves Petitioner to its proofs. 10. Treasury neither admits nor denies the allegations of this paragraph, as it cites a statute, which speaks for itself. 11. Treasury neither admits nor denies the allegations of this paragraph, as it cites a statute, which speaks for itself. 12. Treasury neither admits nor denies the allegations of this paragraph, as it cites a statute, which speaks for itself. 13. To the extent that this paragraph contains allegations concerning the contents of the Informal Conference Recommendation or the Decision and Order of Determination, Treasury neither admits nor denies those allegations, as those documents speak for themselves. To the extent that the allegations of this paragraph contain legal conclusions, Treasury neither admits nor denies the allegations as no response is required under the Michigan Court Rules. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. RESPONSE TO SECTION IV 14. Treasury incorporates its responses to the preceding paragraphs into the following paragraphs of its answer as if fully written herein. To the extent that
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8 this paragraph contains factual allegations concerning any items at issue, Treasury neither admits nor denies the allegations of this paragraph because it lacks knowledge or information sufficient to form a belief as to the truth of the matter asserted and leaves Petitioner to its proofs. To the extent that the allegations of this paragraph contain legal conclusions, Treasury neither admits nor denies the allegations as no response is required under the Michigan Court Rules. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. Finally, Treasury denies that it held ostomy appliances and related supplies as taxable in the audit at issue in this case. 15. To the extent that this paragraph contains factual allegations concerning any items at issue, Treasury neither admits nor denies the allegations of this paragraph because it lacks knowledge or information sufficient to form a belief as to the truth of the matter asserted and leaves Petitioner to its proofs. To the extent that the allegations of this paragraph contain legal conclusions, Treasury neither admits nor denies the allegations as no response is required under the Michigan Court Rules. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. Finally, Treasury denies that it held catheters and urinary- management systems as taxable in the audit at issue in this case. 16. To the extent that this paragraph contains factual allegations concerning any items at issue, Treasury neither admits nor denies the allegations of
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9 this paragraph because it lacks knowledge or information sufficient to form a belief as to the truth of the matter asserted and leaves Petitioner to its proofs. To the extent that the allegations of this paragraph contain legal conclusions, Treasury neither admits nor denies the allegations as no response is required under the Michigan Court Rules. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. 17. To the extent that this paragraph contains factual allegations concerning any items at issue, Treasury neither admits nor denies the allegations of this paragraph because it lacks knowledge or information sufficient to form a belief as to the truth of the matter asserted and leaves Petitioner to its proofs. To the extent that the allegations of this paragraph contain legal conclusions, Treasury neither admits nor denies the allegations as no response is required under the Michigan Court Rules. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. 18. To the extent that this paragraph contains factual allegations concerning any items at issue, Treasury neither admits nor denies the allegations of this paragraph because it lacks knowledge or information sufficient to form a belief as to the truth of the matter asserted and leaves Petitioner to its proofs. To the extent that the allegations of this paragraph contain legal conclusions, Treasury neither admits nor denies the allegations as no response is required under the
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10 Michigan Court Rules. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. Finally, Treasury denies that it held taxable any durable medical equipment components and accessories in the audit at issue in this case. 19. To the extent that this paragraph contains factual allegations concerning any items at issue, Treasury neither admits nor denies the allegations of this paragraph because it lacks knowledge or information sufficient to form a belief as to the truth of the matter asserted and leaves Petitioner to its proofs. To the extent that the allegations of this paragraph contain legal conclusions, Treasury neither admits nor denies the allegations as no response is required under the Michigan Court Rules. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. Finally, Treasury denies that it held any mobility-enhancing equipment and parts as taxable in the audit at issue in this case. RESPONSE TO SECTION V 20. Treasury incorporates its responses to the preceding paragraphs into the following paragraphs of its answer as if fully written herein. To the extent that this paragraph contains allegations concerning the contents of the Informal Conference Recommendation, Treasury neither admits nor denies those allegations, as that document speaks for itself. To the extent that the allegations of this paragraph contain legal conclusions, Treasury neither admits nor denies the allegations as no response is required under the Michigan Court Rules. Treasury
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11 further states that the Michigan Court of Appeals issued a published opinion after the Court of Claims made its decision in Rehab & Mobility Systems. See Rehab & Mobility Systems LLC v Dep’t of Treasury, ___ Mich App ___(2026) (Docket No. 370829). The holding reasoning and holding of that binding case is applicable to, and is dispositive of, whether any item at issue in this case qualifies as a prosthetic device. Further, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. 21. To the extent that the allegations of this paragraph reference an opinion of the Court of Claims, Treasury neither admits nor denies the allegations of this paragraph, as the opinion speaks for itself. Further, the published decision of the Court of Appeals in Rehab & Mobility Systems, ___ Mich App ___, is applicable to, and is dispositive of whether any item at issue in this case qualifies as a prosthetic device. 22. To the extent that the allegations of this paragraph reference an opinion of the Court of Claims, Treasury neither admits nor denies the allegations of this paragraph, as the opinion speaks for itself. Further, the published decision of the Court of Appeals in Rehab & Mobility Systems, ___ Mich App ___, is applicable to, and is dispositive of whether any item at issue in this case qualifies as a prosthetic device. 23. To the extent that the allegations of this paragraph contains Petitioner’s assertion that it does not rely on a particular administrative rule, but does rely on particular statutory text, Treasury neither admits nor denies the
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12 allegations of this paragraph because no response is required under the Michigan Court Rules. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. 24. Treasury neither admits nor denies the allegations of this paragraph, as this paragraph contains Petitioner’s request for relief, to which no response is required. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. RESPONSE TO SECTION VI 25. Treasury incorporates its responses to the preceding paragraphs into the following paragraphs of its answer as if fully written herein. To the extent that the allegations of this paragraph contain legal conclusions, Treasury neither admits nor denies the allegations as no response is required under the Michigan Court Rules. Treasury further denies that an interpretation by another state court of another state’s statute has any applicability to this case. By way of further response, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. 26. Treasury incorporates its responses to the preceding paragraphs into the following paragraphs of its answer as if fully written herein. To the extent that the allegations of this paragraph contain legal conclusions, Treasury neither admits nor denies the allegations as no response is required under the Michigan Court
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13 Rules. Treasury further denies that an interpretation by another state court or another state’s department of another state’s statute has any applicability to this case. By way of further response, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. 27. Treasury incorporates its responses to the preceding paragraphs into the following paragraphs of its answer as if fully written herein. To the extent that the allegations of this paragraph contain legal conclusions, Treasury neither admits nor denies the allegations as no response is required under the Michigan Court Rules. Treasury further denies that an interpretation by another state court or another state’s department of another state’s statute has any applicability to this case. By way of further response, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. 28. Treasury incorporates its responses to the preceding paragraphs into the following paragraphs of its answer as if fully written herein. To the extent that the allegations of this paragraph contain legal conclusions, Treasury neither admits nor denies the allegations as no response is required under the Michigan Court Rules. Treasury further denies that an interpretation by another state court, or another state’s department, of another state’s statute has any applicability to this case. By way of further response, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. 29. Treasury incorporates its responses to the preceding paragraphs into the following paragraphs of its answer as if fully written herein. To the extent that
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14 the allegations of this paragraph contain legal conclusions, Treasury neither admits nor denies the allegations as no response is required under the Michigan Court Rules. Treasury further denies that an interpretation by another state court or another state’s department of another state’s statute has any applicability to this case. By way of further response, Treasury denies that it assessed Petitioner any penalty, and Treasury further states that Petitioner is not entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. RESPONSE TO SECTION VII 30. Treasury incorporates its responses to the preceding paragraphs into the following paragraphs of its answer as if fully written herein. To the extent that this paragraph contains factual allegations, Treasury neither admits nor denies the allegations of this paragraph because it lacks knowledge or information sufficient to form a belief as to the truth of the matter asserted and leaves Petitioner to its proofs. To the extent that the allegations of this paragraph contain legal conclusions, Treasury neither admits nor denies the allegations as no response is required under the Michigan Court Rules. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. Petitioner fails to support this contention with authority, which is insufficient. See In re Contempt of Henry, 282 Mich App 656, 670 (2009). Finally, Treasury states that the medical coverage of the person supplied with a medical item has no bearing on whether an item is taxable, and relief on that basis would be equitable in nature, which the Tax
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15 Tribunal may not grant. Electronic Data Sys Corp v Flint Twp, 253 Mich App 538, 548 (2002). 31. Treasury incorporates its responses to the preceding paragraphs into the following paragraphs of its answer as if fully written herein. To the extent that this paragraph contains factual allegations, Treasury neither admits nor denies the allegations of this paragraph because it lacks knowledge or information sufficient to form a belief as to the truth of the matter asserted and leaves Petitioner to its proofs. To the extent that the allegations of this paragraph contain legal conclusions, Treasury neither admits nor denies the allegations as no response is required under the Michigan Court Rules. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. Finally, Treasury states that the medical coverage of the person supplied with a medical item has no bearing on whether an item is taxable, and relief on that basis would be equitable in nature, which the Tax Tribunal may not grant. Electronic Data Sys Corp, 253 Mich App at 548. 32. Treasury incorporates its responses to the preceding paragraphs into the following paragraphs of its answer as if fully written herein. To the extent that this paragraph contains factual allegations, Treasury neither admits nor denies the allegations of this paragraph because it lacks knowledge or information sufficient to form a belief as to the truth of the matter asserted and leaves Petitioner to its proofs. To the extent that the allegations of this paragraph contain legal
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16 conclusions, Treasury neither admits nor denies the allegations as no response is required under the Michigan Court Rules. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. Finally, Treasury states that the medical coverage of the person supplied with a medical item has no bearing on whether an item is taxable, and relief on that basis would be equitable in nature, which the Tax Tribunal may not grant. Electronic Data Sys Corp, 253 Mich App at 548. 33. Treasury incorporates its responses to the preceding paragraphs into the following paragraphs of its answer as if fully written herein. To the extent that this paragraph contains factual allegations, Treasury neither admits nor denies the allegations of this paragraph because it lacks knowledge or information sufficient to form a belief as to the truth of the matter asserted and leaves Petitioner to its proofs. To the extent that the allegations of this paragraph contain legal conclusions, Treasury neither admits nor denies the allegations as no response is required under the Michigan Court Rules. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. Finally, Treasury states that the medical coverage of the person supplied with a medical item has no bearing on whether an item is taxable, and relief on that basis would be equitable in nature, which the Tax Tribunal may not grant. Electronic Data Sys Corp, 253 Mich App at 548.
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17 RESPONSE TO SECTION VIII 34. Treasury incorporates its responses to the preceding paragraphs into the following paragraphs of its answer as if fully written herein. Treasury neither admits nor denies the allegations of this paragraph, as this paragraph contains Petitioner’s assertion that it contests certain portions of the audit in this case, to which no response is required under the Michigan Court Rules. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. In further response, MCL 205.68(4) expressly declares that if Treasury “has reason to believe that any records maintained or returns filed are inaccurate or incomplete and that additional taxes are due, [Treasury] may assess the amount of the tax due from the taxpayer based on … any other information that is available or that may become available to the department. That assessment is considered prima facie correct for the purpose of this act and the burden of proof of refuting the assessment is upon the taxpayer.” (Emphasis added). Moreover, the “Legislature has granted [Treasury] wide discretion in the selection of auditing methods.” By Lo Oil Co v Dep’t of Treasury, 267 Mich App 19, 42 (2005). Furthermore, to the extent Petitioner challenges the Audit, it is “not enough to merely argue that the audit methodology used by [Treasury] [is unfair, or] is not the most reliable, or that other methods might be used; it must be demonstrated [by Petitioner] that the method used was actually inaccurate” or unfair. By Lo Oil Co, supra, at 42-43. 35. Treasury neither admits nor denies the allegations of this paragraph as this paragraph contains a statement that Petitioner will seek discovery, to which
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18 no response is required under the Michigan Court Rules. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. 36. Treasury neither admits nor denies the allegations of this paragraph as this paragraph contains a statement that Petitioner will produce certain information in discovery and rely on certain information, to which no response is required under the Michigan Court Rules. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. RESPONSE TO SECTION IX 37. Treasury incorporates its responses to the preceding paragraphs into the following paragraphs of its answer as if fully written herein. To the extent that this paragraph contains factual allegations concerning any items at issue, Treasury neither admits nor denies the allegations of this paragraph because it lacks knowledge or information sufficient to form a belief as to the truth of the matter asserted and leaves Petitioner to its proofs. To the extent that the allegations of this paragraph contain legal conclusions, Treasury neither admits nor denies the allegations as no response is required under the Michigan Court Rules. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. Finally, Treasury denies that it assessed Petitioner penalty.
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19 38. Treasury incorporates its responses to the preceding paragraphs into the following paragraphs of its answer as if fully written herein. To the extent that this paragraph contains factual allegations concerning any items at issue, Treasury neither admits nor denies the allegations of this paragraph because it lacks knowledge or information sufficient to form a belief as to the truth of the matter asserted and leaves Petitioner to its proofs. To the extent that the allegations of this paragraph contain legal conclusions, Treasury neither admits nor denies the allegations as no response is required under the Michigan Court Rules. To the extent that a response is required, Treasury denies that Petitioner is entitled to any relief, and that Treasury’s determination is valid, proper, and lawful. RESPONSE TO SECTION X 39. This paragraph contains Petitioner’s request for relief, to which no response is required. To the extent that a response is required, Treasury denies that Petitioner is entitled to such relief. Treasury further denies that Petitioner is entitled to any relief requested in its prayer for relief, including the six bullet points. By way of further response, Treasury’s determination is valid, proper, and lawful. AFFIRMATIVE DEFENSES NOTICE that Respondent, Michigan Department of Treasury, will rely upon the following affirmative defenses and expressly reserves the right to assert such
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20 other affirmative defenses as may become apparent in the course of discovery or other proceedings in this matter: 1. Petitioner may have failed to state a claim upon which relief may be granted, and the Petition may be subject to dismissal under MCR 2.116(C)(8) and 2.116(C)(10). 2. The Petition may be barred because of: release, and/or payment, and/or prior judgment, and/or immunity granted by law, and/or assumption of risk, and/or fraud, and/or estoppel, and/or statute of limitations, and/or lack of jurisdiction over the person or property, and/or lack of subject matter jurisdiction, and/or insufficient process and service of process, and/or lack of legal capacity, and/or lack of case or controversy and/or existence of another action involving the same claim and parties to the extent discovery reveals the applicability of the same. 3. Treasury reserves the right to add additional affirmative defenses as they become known and necessary. WHEREFORE, Respondent, Michigan Department of Treasury, respectfully requests that this Honorable Tribunal deny Petitioner any relief under the Petition, dismiss said Petition with prejudice, and award costs to Treasury.
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21 Respectfully submitted, /s/ Wesley M. Margeson Wesley M. Margeson (P81232) Jadranko J. Tomic Bobas (P75494) Assistant Attorneys General Michigan Dep’t of Attorney General Revenue and Tax Division Attorneys for Respondent P.O. Box 30754 Lansing, MI 48909 (517) 335-7584 MargesonW@michigan.gov TomicBobasJ@michigan.gov Dated: October 15, 2026
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Exhibit
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Michigan Department of Treasury 6001 (Rev. 03-22), Page 1 Michigan Bill for Taxes Due red Final Assessment Issued under authority of P.A. 122 of 1941, as amended. Collection Services Bureau P.O. Box 30199 Lansing, MI 48909 etreas.michigan.govi/collections BINSONS HOSPITAL SUPPLIES INC 26834 LAWRENCE CENTER LINE, MI 48015-1262 Amount Due: $64,563.24 For payment options, pay online at etreas.michigan.gov/collections Assessment Number 1506997 Tax Type Michigan Sales Tax Notice Date: April 01, 2026 Account Number: I Letter ID: 100015461994 Refer To: Collection Services Bureau For Billing Questions: 517-636-6925 For Payment Options: 517-827-3227 Billing Summary Tax Due $62,843.70 Penalty $0.00 Interest $1,719.54 Total Due $64,563.24 Tax Period 12/31/2020 Reason for Bill WE CORRECTED THE TAXABLE PERIOD(S) SHOWN ABOVE BASED ON THE ACTUAL/AMENDED RETURN(S) OR ADDITIONAL INFORMATION RECEIVED. For monthly PENALTY/INTEREST provisions, correspondence and informal conference information, see page 3. Detach and mail the payment voucher with your payment. Do not staple. Michigan Department of Treasury 5790 (Rev. 05-22) Final Bill for Taxes Due Make your check payable to "State of Michigan". Write your Account Number and Assessment Number on all checks and correspondence. Allow up to 14 days for mailing and processing. A return envelope is Issued under authority of Public Act 122 of 1941, as amended. Assessment Number Date Issued 1506997 04/01/2026 Taxpayer Name enclosed for your convenience. Mail payment and this Voucher to: MICHIGAN DEPARTMENT OF TREASURY P.O. BOX 77000 DEPARTMENT 77437 DETROIT, MI 48277-0437 BINSONS HOSPITAL SUPPLIES INC Account Number WRITE PAYMENT AMOUNT HERE $ To pay online and view account details, go to etreas.michigan.gov/collections. Notify the Collection Services Bureau in writing if your address above is incorrect. Efe
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Michigan Department of Treasury 6001 (Rev. 03-22), Page 2 “This page has been intentionally left blank”
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Michigan Department of Treasury 6001 (Rev. 03-22), Page 3 ’ Michigan Bill for Taxes Due = ' mY Final Assessment Issued under authority of P.A. 122 of 1941, as amended. etreas.michigan.govi/collections rg Collection Services Bureau P.O. Box 30199 Lansing, MI 48909 If you disagree with this bill, please select one of the following options: For general information regarding why this Bill for Taxes Due was sent Contact the Tax Division printed at the top of this form. You can also visit michigan.gov/taxes for information and forms To file an appeal: You may appeal all or parts of this Final Bill for Taxes Due directly to Tax Tribunal within 60 days or to the court of Claims within 90 days of date on this bill. The uncontested portion must be paid before you appeal. Contact the Tax Tribunal: You can appeal to the Tax Tribunal by filing a petition, with filing fee to PO Box 30232 Lansing, MI 48909. Include a copy of this Final Bill for Taxes Due with the petition. Visit michigan.gov/taxtrib for additional information Contact the Court of Claims: You can appeal to the Court of Claims by filing a complaint with the Court of Claims at any of its district offices. For contact information for the Court of Claims District Offices visit courts.michigan.gov/courts/court-of-claims/contact-information To file Sales, Use, or Withholding returns or amended returns for tax years 2015 or newer, please use Michigan Treasury Online (MTO) Visit Michigan Treasury Online (MTO): mto.treasury.michigan.gov To send correspondence, returns not filed on MTO, and/or amended return related to, and/or amended returns related to this Bill for Taxes Due. Include your account number on all correspondence Send information to: Michigan Department of Treasury Collection Services Bureau PO Box 30199 Lansing, MI 48909-7699 If you agree with this bill, please select one of the following payment options: Additional penalty and interest will be applied to your account at the beginning of each month. If your payment will not be received by the last day of the month, visit michigan.gov/taxes/business-taxes/mto/tax-interest-rate-calculation to estimate additional penalty and interest To pay online Visit: etreas.michigan.gov/collections Payments can be made using a checking account, savings account, or debit/credit card To view account information online Visit: etreas.michigan.gov/collections For payment arrangements and/or to correct address information Contact: Collection Services Bureau at 517-636-5265 To pay by mail: Make your check payable to the State of Michigan and include your account number on the payment(s) Send payment to: MICHIGAN DEPARTMENT OF TREASURY P.O. BOX 77000 DEPARTMENT 77437 DETROIT, MI 48277-0437
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Michigan Department of Treasury 6001 (Rev. 03-22), Page 1 Michigan Bill for Taxes Due Final Assessment }5t BINSONS HOSPITAL SUPPLIES INC 26834 LAWRENCE CENTER LINE, MI 48015-1281 Amount Due: $210,028.57 For payment options, pay online at etreas.michigan.gov/collections Assessment Number Issued under authority of P.A. 122 of 1941, as amended. Collection Services Bureau P.O. Box 30199 Lansing, MI 48909 etreas.michigan.govi/collections Notice Date: October 31, 2025 Account Number: |] Letter ID: 100014327628 Refer To: Collection Services Bureau For Billing Questions: 517-636-6925 For Payment Options: 517-827-3227 Billing Summary Tax Due $164,938.92 Penalty $0.00 Interest $45,089.65 Total Due $210,028.57 Tax Period Tax Type 1759632 Michigan Sales Tax 12/31/2021 Reason for Bill THE DEFICIENCY IS BASED ON AN AUDIT CONDUCTED BY THE MICHIGAN DEPARTMENT OF TREASURY. For monthly PENALTY/INTEREST provisions, correspondence and informal conference information, see page 3. Detach and mail the payment voucher with your payment. Do not staple. Michigan Department of Treasury 5790 (Rev. 05-22) Final Bill for Taxes Due Make your check payable to "State of Michigan". Write your Account Number and Assessment Number on all checks and correspondence. Allow up to 14 days for mailing and processing. A return envelope is enclosed for your convenience. Mail payment and this Voucher to: MICHIGAN DEPARTMENT OF TREASURY P.O. BOX 77000 DEPARTMENT 77437 DETROIT, MI 48277-0437 Issued under authority of Public Act 122 of 1941, as amended. Assessment Number Date Issued 1759632 10/31/2025 Taxpayer Name BINSONS HOSPITAL SUPPLIES INC ii ii WRITE PAYMENT AMOUNT HERE $ To pay online and view account details, go to etreas.michigan.gov/collections. Notify the Collection Services Bureau in writing if your address above is incorrect.
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Michigan Department of Treasury 6001 (Rev. 03-22), Page 3 ’ Michigan Bill for Taxes Due = ' mY Final Assessment Issued under authority of P.A. 122 of 1941, as amended. etreas.michigan.govi/collections rg Collection Services Bureau P.O. Box 30199 Lansing, MI 48909 If you disagree with this bill, please select one of the following options: For general information regarding why this Bill for Taxes Due was sent Contact the Tax Division printed at the top of this form. You can also visit michigan.gov/taxes for information and forms To file an appeal: You may appeal all or parts of this Final Bill for Taxes Due directly to Tax Tribunal within 60 days or to the court of Claims within 90 days of date on this bill. The uncontested portion must be paid before you appeal. Contact the Tax Tribunal: You can appeal to the Tax Tribunal by filing a petition, with filing fee to PO Box 30232 Lansing, MI 48909. Include a copy of this Final Bill for Taxes Due with the petition. Visit michigan.gov/taxtrib for additional information Contact the Court of Claims: You can appeal to the Court of Claims by filing a complaint with the Court of Claims at any of its district offices. For contact information for the Court of Claims District Offices visit courts.michigan.gov/courts/court-of-claims/contact-information To file Sales, Use, or Withholding returns or amended returns for tax years 2015 or newer, please use Michigan Treasury Online (MTO) Visit Michigan Treasury Online (MTO): mto.treasury.michigan.gov To send correspondence, returns not filed on MTO, and/or amended return related to, and/or amended returns related to this Bill for Taxes Due. Include your account number on all correspondence Send information to: Michigan Department of Treasury Collection Services Bureau PO Box 30199 Lansing, MI 48909-7699 If you agree with this bill, please select one of the following payment options: Additional penalty and interest will be applied to your account at the beginning of each month. If your payment will not be received by the last day of the month, visit michigan.gov/taxes/business-taxes/mto/tax-interest-rate-calculation to estimate additional penalty and interest To pay online Visit: etreas.michigan.gov/collections Payments can be made using a checking account, savings account, or debit/credit card To view account information online Visit: etreas.michigan.gov/collections For payment arrangements and/or to correct address information Contact: Collection Services Bureau at 517-636-5265 To pay by mail: Make your check payable to the State of Michigan and include your account number on the payment(s) Send payment to: MICHIGAN DEPARTMENT OF TREASURY P.O. BOX 77000 DEPARTMENT 77437 DETROIT, MI 48277-0437
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Michigan Department of Treasury 6001 (Rev. 03-22), Page 1 Michigan Bill for Taxes Due Final Assessment }5t BINSONS HOSPITAL SUPPLIES INC 26834 LAWRENCE CENTER LINE, MI 48015-1281 Amount Due: $187,508.44 For payment options, pay online at etreas.michigan.gov/collections Assessment Number 1759637 Issued under authority of P.A. 122 of 1941, as amended. Tax Type Michigan Sales Tax Collection Services Bureau P.O. Box 30199 Lansing, MI 48909 etreas.michigan.govi/collections Notice Date: October 31, 2025 Account Number: Letter ID: 100014327620 Refer To: Collection Services Bureau For Billing Questions: 517-636-6925 For Payment Options: 517-827-3227 Billing Summary Tax Due $152,631.00 Penalty $0.00 Interest $34,877.44 Total Due $187,508.44 Tax Period 12/31/2022 Reason for Bill CL THE DEFICIENCY IS BASED ON AN AUDIT CONDUCTED BY THE MICHIGAN DEPARTMENT OF TREASURY. For monthly PENALTY/INTEREST provisions, correspondence and informal conference information, see page 3. Detach and mail the payment voucher with your payment. Do not staple. Michigan Department of Treasury 5790 (Rev. 05-22) Final Bill for Taxes Due Make your check payable to "State of Michigan". Write your Account Number and Assessment Number on all checks and correspondence. Allow up to 14 days for mailing and processing. A return envelope is enclosed for your convenience. Mail payment and this Voucher to: MICHIGAN DEPARTMENT OF TREASURY P.O. BOX 77000 DEPARTMENT 77437 DETROIT, MI 48277-0437 Issued under authority of Public Act 122 of 1941, as amended. Assessment Number 1759637 Taxpayer Name BINSONS HOSPITAL SUPPLIES INC Account Number Date Issued 10/31/2025 WRITE PAYMENT AMOUNT HERE $ To pay online and view account details, go to etreas.michigan.gov/collections. Notify the Collection Services Bureau in writing if your address above is incorrect.
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Michigan Department of Treasury 6001 (Rev. 03-22), Page 3 ’ Michigan Bill for Taxes Due = ' mY Final Assessment Issued under authority of P.A. 122 of 1941, as amended. etreas.michigan.govi/collections rg Collection Services Bureau P.O. Box 30199 Lansing, MI 48909 If you disagree with this bill, please select one of the following options: For general information regarding why this Bill for Taxes Due was sent Contact the Tax Division printed at the top of this form. You can also visit michigan.gov/taxes for information and forms To file an appeal: You may appeal all or parts of this Final Bill for Taxes Due directly to Tax Tribunal within 60 days or to the court of Claims within 90 days of date on this bill. The uncontested portion must be paid before you appeal. Contact the Tax Tribunal: You can appeal to the Tax Tribunal by filing a petition, with filing fee to PO Box 30232 Lansing, MI 48909. Include a copy of this Final Bill for Taxes Due with the petition. Visit michigan.gov/taxtrib for additional information Contact the Court of Claims: You can appeal to the Court of Claims by filing a complaint with the Court of Claims at any of its district offices. For contact information for the Court of Claims District Offices visit courts.michigan.gov/courts/court-of-claims/contact-information To file Sales, Use, or Withholding returns or amended returns for tax years 2015 or newer, please use Michigan Treasury Online (MTO) Visit Michigan Treasury Online (MTO): mto.treasury.michigan.gov To send correspondence, returns not filed on MTO, and/or amended return related to, and/or amended returns related to this Bill for Taxes Due. Include your account number on all correspondence Send information to: Michigan Department of Treasury Collection Services Bureau PO Box 30199 Lansing, MI 48909-7699 If you agree with this bill, please select one of the following payment options: Additional penalty and interest will be applied to your account at the beginning of each month. If your payment will not be received by the last day of the month, visit michigan.gov/taxes/business-taxes/mto/tax-interest-rate-calculation to estimate additional penalty and interest To pay online Visit: etreas.michigan.gov/collections Payments can be made using a checking account, savings account, or debit/credit card To view account information online Visit: etreas.michigan.gov/collections For payment arrangements and/or to correct address information Contact: Collection Services Bureau at 517-636-5265 To pay by mail: Make your check payable to the State of Michigan and include your account number on the payment(s) Send payment to: MICHIGAN DEPARTMENT OF TREASURY P.O. BOX 77000 DEPARTMENT 77437 DETROIT, MI 48277-0437
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Michigan Department of Treasury 6001 (Rev. 03-22), Page 1 Michigan Bill for Taxes Due Final Assessment Issued under authority of P.A. 122 of 1941, as amended. Collection Services Bureau P.O. Box 30199 Lansing, MI 48909 etreas.michigan.govi/collections BINSONS HOSPITAL SUPPLIES INC 26834 LAWRENCE CENTER LINE, MI 48015-1262 Amount Due: $159,878.83 For payment options, pay online at etreas.michigan.gov/collections Assessment Number 1507021 Tax Type Michigan Sales Tax Notice Date: April 01, 2026 Account Number: Letter ID: 100015461999 Refer To: Collection Services Bureau For Billing Questions: 517-636-6925 For Payment Options: 517-827-3227 Billing Summary Tax Due $134,476.54 Penalty $0.00 Interest $25,402.29 Total Due $159,878.83 Tax Period 12/31/2023 Reason for Bill WE CORRECTED THE TAXABLE PERIOD(S) SHOWN ABOVE BASED ON THE ACTUAL/AMENDED RETURN(S) OR ADDITIONAL INFORMATION RECEIVED. For monthly PENALTY/INTEREST provisions, correspondence and informal conference information, see page 3. Detach and mail the payment voucher with your payment. Do not staple. Michigan Department of Treasury 5790 (Rev. 05-22) Final Bill for Taxes Due Make your check payable to "State of Michigan". Write your Account Number and Assessment Number on all checks and correspondence. Allow up to 14 days for mailing and processing. A return envelope is enclosed for your convenience. Mail payment and this Voucher to: MICHIGAN DEPARTMENT OF TREASURY P.O. BOX 77000 DEPARTMENT 77437 DETROIT, MI 48277-0437 Issued under authority of Public Act 122 of 1941, as amended. Assessment Number 1507021 Taxpayer Name BINSONS HOSPITAL SUPPLIES INC Account Number Date Issued 04/01/2026 WRITE PAYMENT AMOUNT HERE $ To pay online and view account details, go to etreas.michigan.gov/collections. Notify the Collection Services Bureau in writing if your address above is incorrect.
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Michigan Department of Treasury 6001 (Rev. 03-22), Page 3 ’ Michigan Bill for Taxes Due = ' mY Final Assessment Issued under authority of P.A. 122 of 1941, as amended. etreas.michigan.govi/collections rg Collection Services Bureau P.O. Box 30199 Lansing, MI 48909 If you disagree with this bill, please select one of the following options: For general information regarding why this Bill for Taxes Due was sent Contact the Tax Division printed at the top of this form. You can also visit michigan.gov/taxes for information and forms To file an appeal: You may appeal all or parts of this Final Bill for Taxes Due directly to Tax Tribunal within 60 days or to the court of Claims within 90 days of date on this bill. The uncontested portion must be paid before you appeal. Contact the Tax Tribunal: You can appeal to the Tax Tribunal by filing a petition, with filing fee to PO Box 30232 Lansing, MI 48909. Include a copy of this Final Bill for Taxes Due with the petition. Visit michigan.gov/taxtrib for additional information Contact the Court of Claims: You can appeal to the Court of Claims by filing a complaint with the Court of Claims at any of its district offices. For contact information for the Court of Claims District Offices visit courts.michigan.gov/courts/court-of-claims/contact-information To file Sales, Use, or Withholding returns or amended returns for tax years 2015 or newer, please use Michigan Treasury Online (MTO) Visit Michigan Treasury Online (MTO): mto.treasury.michigan.gov To send correspondence, returns not filed on MTO, and/or amended return related to, and/or amended returns related to this Bill for Taxes Due. Include your account number on all correspondence Send information to: Michigan Department of Treasury Collection Services Bureau PO Box 30199 Lansing, MI 48909-7699 If you agree with this bill, please select one of the following payment options: Additional penalty and interest will be applied to your account at the beginning of each month. If your payment will not be received by the last day of the month, visit michigan.gov/taxes/business-taxes/mto/tax-interest-rate-calculation to estimate additional penalty and interest To pay online Visit: etreas.michigan.gov/collections Payments can be made using a checking account, savings account, or debit/credit card To view account information online Visit: etreas.michigan.gov/collections For payment arrangements and/or to correct address information Contact: Collection Services Bureau at 517-636-5265 To pay by mail: Make your check payable to the State of Michigan and include your account number on the payment(s) Send payment to: MICHIGAN DEPARTMENT OF TREASURY P.O. BOX 77000 DEPARTMENT 77437 DETROIT, MI 48277-0437
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Exhibit
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STATE OF MICHIGAN DEPARTMENT OF TREASURY DECISION AND ORDER OF DETERMINATION Binson’s Hospital Supplies Inc Docket No. 2025-1111 Kevin Gerback Michigan Sales Tax 26834 Lawrence Avenue Intents to Assess 1506997, 1507001, Center Line, MI 48015 1759623, 1507011, 1759637 & 1509021 Audit Period: 07/01/2020 –12/31/2023 The Department, having reviewed the recommendation of the Referee in the above captioned matter, and being advised in the premises; and It appearing that this recommendation is supported by authority and reasoned opinion, and that the same accordingly be accepted; It is ordered and determined that 2020 Intent to Assess 1506997 be upheld, as adjusted, for tax in the amount of $82,608.63 and interest. It is ordered and determined that 2021 Intent to Assess 1507001 be cancelled, and Intent to Assess 1759632 is upheld as adjusted for tax in the amount of $164,938.92 and interest. It is ordered and determined that 2022 Intent to Assess 1507011 be cancelled, and Intent to Assess 1759637 is upheld as adjusted for tax in the amount of $152,631.00 and interest. It is ordered and determined that 2023 Intent to Assess 1507021 be upheld, as adjusted, for tax in the amount of $147,391.54 and interest. It is further ordered and determined that the Department shall issue final assessments against you for the tax and interest remaining due after application of payments received. The tax due on these assessments will be subject to the accrual of additional interest as provided by sections 23 and 24 of 1941 PA 122, as amended. Any final assessments issued will provide your appeal rights with respect to those assessments.
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Docket No. 2025-1111 Page 2 of 2 If you disagree with all or part of this Decision and Order of Determination you may, as provided at MCL 205.22, appeal to the Michigan Tax Tribunal within 60 days of this Decision and Order of Determination, or to the Michigan Court of Claims at any of its District Offices, within 90 days of this Decision and Order of Determination. All undisputed amounts must be paid prior to appeal. Appeal instructions and contact information for the Michigan Tax Tribunal are available at www.mi.gov/taxtrib. Appeal instructions and contact information for the Court of Claims District Offices are available at www.courts.mi.gov/courts/court-of-claims. DATED: MAR 20, 2026 ____________________________ Regina R. Blough, Administrator Hearings Division On Behalf of the State Treasurer cc: Fasse Law PLLC Brandon Fasse 25790 Commerce Dr, Ste 110 Madison Heights, MI 48071 CERTIFIED MAIL - RETURN RECEIPT REQUESTED
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STATE OF MICHIGAN DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS MICHIGAN TAX TRIBUNAL BINSON’S HOSPITAL SUPPLIES, INC., Petitioner, v MICHIGAN DEPARTMENT OF TREASURY, Respondent. / Fasse Law PLLC Brandon K. Fasse (P80370) Attorney for the Petitioner 25790 Commerce Dr. Suite 110 Madison Heights, MI 48071 (800) 604-5386 Brandon@fasselaw.com MTT Docket # 26-001081 Wesley M. Margeson (P81232) Jadranko J. Tomic Bobas (P75494) Assistant Attorneys General Michigan Dep’t of Attorney General Revenue and Tax Division Attorneys for Respondent P.O. Box 30754 Lansing, MI 48909 (517) 335-7584 MargesonW@michigan.gov TomicBobasJ@michigan.gov / PROOF OF SERVICE Reatha K. Gates states that on this 15th day of October 2026, she served a copy of the Respondent Michigan Department of Treasury’s Answer to Petition and Affirmative Defenses. along with a copy of this Proof of Service, upon the following:
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2 Fasse Law PLLC Brandon K. Fasse 25790 Commerce Dr. Suite 110 Madison Heights, MI 48071 by depositing same in a receptacle of the United States Post Office in the City of Lansing, Michigan, enclosed in an envelope, plainly addressed, bearing postage fully prepaid. I declare that the above statement is true to the best of my knowledge, information, and belief. /s/ Reatha Gates Reatha Gates, Legal Secretary