Varnum attorney weighs in on retroactive repeal of Multistate Tax Compact
Varnum attorney Wayne Roberts was among a few State and Local Tax (SALT) attorneys who provided insight into a recent court order likely to have far-reaching implications for the State of Michigan and out-of-state businesses paying taxes in Michigan.
The issue stems from a recent opinion and order by Michigan Court of Claims Chief Judge Michael Talbot in the matter of IBM Corp. v Department of Treasury, in which he applied the state’s 2014 retroactive repeal of the Multistate Tax Compact. The State enacted the repeal following a Michigan Supreme Court ruling which found IBM Corp. was able to elect to use the apportionment formula in the Multistate Tax Compact. The State enacted the repeal to avoid paying an estimated $1.1 billion in refunds to out-of-state companies.
“Based on the IBM holdings to date, the question whether retroactive legislation is good policy appears to be separate from the question of whether such legislation is legally allowable,” Roberts told Tax Analysts reporter Amy Hamilton. “But...[t]here is little doubt that there will be additional litigation to more fully develop the remaining questions presented by the IBM case.”
Read the full text of the article at www.taxanalysts.com/www/features.nsf/Features/760841DB418F940185257E51006CA7E2
Roberts is a member of Varnum’s Tax Team. His practice includes all aspects of federal and state tax planning and litigation. He represents closely-held and Fortune 100 companies in tax disputes with the IRS, MI Dept. of Treasury, and revenue departments in Pa., Ind., Tenn., N.Y., Calif. and many other jurisdictions.
Price bill to require physical presence at open meetings approved
At the end of May, the Michigan House approved legislation to encourage greater transparency by requiring the physical presence of elected officials at public meetings, announced bill author state Rep. Amanda Price.
“We are frequently trying to make accommodations for public officials who can’t be present, when the overriding consideration should be for the benefit of the public,” said Rep. Price.
Michigan’s Open Meetings Act requires all decisions and votes of a public body to be made at a meeting open to the public. But the act does not define whether a public official may be present through non-physical or electronic means. Rep. Price says that electronic presence allows public officials to participate without having to face the public.
“When the public elects you to an official post, they expect you to be at the meetings” Rep. Price said. “There are situations where people can’t be physically present at a meeting, but there is nothing wrong with being absent once in a while.”
HB 4182 moved to the Senate for further consideration.
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