Tax Foundation To Campaign Against Retroactive US Tax Law Changes

The U.S. Marshals Service already refuses to release booking photos in other states due to policy or rulings from other courts. However, on September 12, 2014, Michigan's governor signed into law the retroactive repeal of the election under the MTC. Rather, the petitioners argue that the retroactive changes upend taxpayers' expectations and understanding of how to comply with tax laws.

MI officials urged the Supreme Court not to hear the appeals, saying the 2014 measure merely clarified what the 2007 law intended. The Michigan Supreme Court denied certiorari in this action, and now the U.S. Supreme Court has taken the same action. But even after issuing this letter ruling, the Department of Revenue assessed Dot Foods for sales made after January 1, 2000.

The Supreme Court is rejecting challenges by IBM, Goodyear and other businesses seeking more than $1 billion in tax refunds from MI.

Before 2008, companies with activities in MI and outside the state could limit their tax liability by apportioning their income using a three-factor formula set out under a decades-old agreement called Multistate Tax Compact, which took into account a company's sales, property and payroll in the state. The overall impact of the case was that the state of MI could be on the hook for more than $1 billion in refund claims. But based on the 2014 legislation, Michigan's Court of Appeals dismissed them, saying the changes did not violate the companies' right to due process.

In 2014, the Michigan Legislature retroactively repealed the Multistate Tax Compact's alternative apportionment formula.

Dozens of companies filed suit against MI as far back as 2011 over the tax changes. Six cert petitions challenging this retroactive repeal were submitted to the U.S. Supreme Court, filed by the following taxpayers: International Business Machines, Gillette Commercial Operations, Goodyear Tire & Rubber Company, Sonoco Products Company, DIRECTV Group Holdings, and Skadden, Arps, Slate, Meagher & Flom LLP.

  • Zachary Reyes