Tax Ruling Could Cost State $1 Billion

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Officials say a corporate tax case decided last month by the Michigan Supreme Court could cost the state more than $1 billion.
The ruling is a 4-3 opinion in favor of IBM and against the Michigan Department of Treasury in a long-standing tax dispute about how corporations that do business in several states may calculate their Michigan taxes.
The ruling means IBM would get a $6 million tax refund for 2008, rather than the $1.3 million calculated by Michigan Treasury. The newspaper reports, however, that other companies could be affected along with Michigan Business Tax cases in the 2009 and 2010 tax years.
The state Treasury Department estimates Michigan's exposure from the decision at $1.1 billion, plus interest.



 
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