Tax News

CCH (cch.taxgroup.com) reports:

The Michigan Supreme Court reversed an appellate court decision (see TAXDAY, 2005/10/12, S.17) holding that a Michigan taxpayer was entitled to rely on a single business tax (SBT) revenue administrative bulletin stating that P.L. 86-272 would apply in determining that the taxpayer did not have sufficient nexus with the state and was immune from taxation. In reinstating the trial court's decision, the Supreme Court relied on the reasons set forth in the appellate court's dissenting opinion that the Michigan Department of Revenue was not estopped from retroactively applying the decision in Gillette Co. v. Department of Treasury , 198 Mich. App. 303 (1993), holding that the SBT was not an income tax and, therefore, the protection of P.L. 86-272 was not applicable. According to the dissenting opinion, revenue administrative bulletins are only interpretations of the applicable statutes and do not have the force of law.
International Home Foods, Inc. v. Department of Treasury , Michigan Supreme Court, Docket Nos. 130542, 130543, January 5, 2007.