On June 6, 2013, the Michigan Court of Claims became the second court in the country to hold that the Multistate Tax Compact (the Compact) is a binding multistate compact that cannot be repealed by a separate, subsequent statute. The taxpayer was thus entitled to apportion its income under the former Business Income Tax component of the Michigan Business Tax using the Compact’s equally-weighted three factor formula rather than the statutory single sales factor formula. 

For more details, read our legal alert, “Michigan Court Allows Multistate Tax Compact Election.”