25-003857 Green Bronco LLC Answer .pdf
Green Bronco LLC, Petitioner Vs. Michigan Department Of Treasury, Respondent · 25-003857-TT
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RESPONSE TO PETITIONER’S REASON FOR APPEAL MTT Docket No. 25-003857 SALES TAX GREEN BRONCO LLC, PETITIONER Filing The Tax Policy Division, Department of Treasury, prepares this answer in response to a petition filed with the Small Claims Division of the Michigan Tax Tribunal by Green Bronco LLC. (“Petitioner”). A copy of this answer has been served concurrently on the Petitioner. Petition Petitioner is appealing the outcome of a sales tax audit that took place alongside a marihuana retailers excise tax (MRE) audit, resulting in assessments issued for both taxes for the 2022 and 2023 tax years. The petition relates to the sales tax assessments only. Background On or around April 2025, Treasury conducted an audit of Petitioner’s sales tax and marihuana retailers excise tax (MRE) returns for the period of March 2021 through December 2024. Upon the completion of the audit, Treasury issued multiple intents to assess for the MRE tax (assessment numbers 1714100 and 1714101) as well as multiple intents to assess for sales tax (assessment numbers 1702103 and 1702106). Petitioner timely appealed the MRE assessments and an informal conference was scheduled for November 7, 2025. Unfortunately, Petitioner’s request to appeal the sales tax assessments was not timely received and was subsequently denied in accordance with MCL 205.21(2)(c). Prior to the conference relating to the MRE assessments, Petitioner supplied accurate data to replace previously reported incorrect data. The Department’s auditors reviewed the new data and made adjustments to its audit determination related to the MRE assessments, resulting in the issuance of new Audit Workpapers on November 6, 2025, which were then shared with Petitioner. On November 12, 2025, Petitioner notified the Department by letter that based on the adjustments made, the matter had been resolved and that it no longer wished to continue with the informal conference. The Hearings Referee recommended that the request to withdraw the informal conference be granted in compliance with section 21 of the Revenue Act. The Department has not yet issued a decision adopting the Recommendation. Petitioner’s Claims Petitioner claims that the State relied on incorrect data to issue assessments for both the sales tax and MRE tax subsequent to the completion of an audit. Petitioner did not timely appeal the sales tax assessments at issue in this petition. However, it did timely request informal conference on the MRE tax assessments and supplied corrected data in connection with that request. The data was accepted as to the MRE tax assessments 1
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and adjustments made, though no formal decision has yet been issued reflecting a modification of the MRE assessments. Petitioner requests that the same data correction be applied to the Department’s sales tax assessments because the underlying data used to determine the outcome of the MRE assessments is the same data used to determine the outcome of the sales tax assessments. Petitioner asserts that if the data was accepted for the MRE liability determination, it should also be accepted for the sale tax liability determination. Respondent’s Answer The Department agrees that the same data should be used to formulate the tax liability for both sales tax and the MRE tax. The Department’s audit division is in the process of recalculating the sales tax liability in accordance with the corrected data supplied. Adjustments to the assessments are likely but those have not yet been recalculated. Relief Until such time that Treasury’s Audit Division can review the new information and make a final determination, Respondent requests that the Court uphold the assessments as issued. 2