Federal Tax Research 10th Edition by Steven Gill, Gerald Whittenburg, Roby Sawyers, Debra Sanders, William Raabe

Exercise 6

Melkry, an Ohio corporation, provides tugboat services on the Great Lakes to vessels weighing at least 800 tons. Each of Melkry's tugboats weighs approximately 100 tons. Michigan has assessed use tax on repair materials, fuel, and capital assets purchased by Melkry for its operations. Is Melkry subject to the use tax