For over 50 years, Bloomberg Tax’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...
By Che Odom
Michigan’s Department of Treasury remains silent on requests by DirecTV and other companies for the U.S. Supreme Court to review its retroactive application of a business tax law.
DirecTV Group Holdings LLC, parent of DirecTV, petitioned the high court in early December after several other companies did so. The businesses—which include Sonoco Products Co., Goodyear Tire & Rubber Co., IBM Corp., Gillette Commercial Operations North America and Skadden, Arps, Slate, Meagher & Flom LLP—are contesting several Michigan Court of Appeals rulings upholding a state law that alters taxes back to 2008 ( DirecTV Grp. Holdings, LLC v. Mich. Dep’t of Treasury , U.S., No. 16-736, petition for certiorari 12/5/16 ).
As it has done in earlier petitions on the matter, Michigan notified the Supreme Court that it wouldn’t be filing a response in the DirecTV case, which was due Jan. 5.
Attorneys familiar with the petitions say they don’t believe the high court will take up the matter, having recently rejected petitions in other state cases over the Multistate Tax Compact. Practitioners have said the retroactivity issue in the Michigan cases may make them more interesting to the Supreme Court, but that still won’t be enough.
The Michigan Legislature in 2014 amended the Michigan Business Tax Act and repealed the Multistate Tax Compact. Under the compact, business taxpayers could elect to apportion income using “an equally-weighted, three-factor apportionment formula based on a business’s sales, property, and payroll.” Under the amendment, businesses would need to apportion their tax base using a “sales-factor apportionment formula,” retroactive to Jan. 1, 2008.
At stake is more than $1 billion in potential refunds to the companies.
To contact the reporter on this story: Che Odom at COdom@bna.com
To contact the editor responsible for this story: Ryan C. Tuck at firstname.lastname@example.org
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)