Michigan ~ Corporate Income Tax: U.S. Supreme Court Asked to Review Retroactive Repeal of Multistate Tax Compact

CCH Tax Day Report

In separate petitions, taxpayers have asked the U.S. Supreme Court to review Michigan appellate court decisions that rejected challenges to the retroactive repeal of the Multistate Tax Compact and its apportionment formula. The Michigan Supreme Court denied leave to appeal. (TAXDAY, 2016/09/12, S.14)

Among the specific questions presented in the petitions are the following:

whether the Compact has the status of a contract that binds its signatory states and requires them to allow taxpayers to elect to use the Compact’s equally-weighted apportionment formula, until the state prospectively withdraws from the Compact;

whether a state law that imposes retroactive tax liability for a period of almost seven years, in a manner that upsets settled expectations and reasonable reliance interests, violates the Due Process Clause; and

whether Michigan’s retroactive repeal of, and withdrawal from, the Compact violates the Commerce Clause.

Subscribers can view the petitions.

16-687

16-688

16-697

16-698

16-699

Sonoco Products Co. v. Department of Treasury, State of Michigan, U.S. Supreme Court, Dkt. 16-687, petition for certiorari filed November 21, 2016; Skadden, Arps, Slate, Meagher & Flom LLP v. Michigan Department of Treasury, U.S. Supreme Court, Dkt. 16-688, petition for certiorari filed November 21, 2016; Gillette Commercial Operations North America v. Michigan Department of Revenue, U.S. Supreme Court, Dkt. 16-697, petition for certiorari filed November 21, 2016; International Business Machines Corp. v. Michigan Department of Treasury, U.S. Supreme Court, Dkt. 16-698, petition for certiorari filed November 18, 2016; Goodyear Tire & Rubber Co. v. Michigan Department of Revenue, U.S. Supreme Court, Dkt. 16-699, petition for certiorari filed November 21, 2016

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CCHTaxGroup

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