Court: Nothing wrong with law to stop corporate tax refunds
Lansing — In a victory for the state’s checkbook, the Michigan appeals court says there’s nothing illegal about a retroactive law that prevents more than $1 billion in tax refunds for out-of-state companies.
Gov. Rick Snyder last year signed a law in response to a $6 million state Supreme Court decision in favor of IBM. Officials warned that the decision would make Michigan vulnerable to a flood of refund requests from other companies.
In an opinion released Wednesday, the appeals court says it’s a “legitimate legislative action” to eliminate a revenue loss related to a perceived misinterpretation of law. The court affirmed a ruling from the Court of Claims.
The legal dispute involves tax liability for certain companies from 2008 through 2010.
Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.