Taxation and State Taxation -- 2017



Sonoco Prods. Co. v. Dep't of Treasury, Michigan   (U.S. Supreme Court)

Challenging retroactive withdrawal from Multistate Tax Compact

The NAM filed an amicus brief in the U.S. Supreme Court urging the Court to hear an appeal challenging Michigan’s repeal of a tax provision that had allowed multistate companies to use a standard three-factor formula to compute taxes. The appeal arises from a lower court ruling that allowed Michigan to renege on its obligations under the Multistate Tax Compact, which was designed to prevent double taxation. Multistate companies could now be liable for more than $1 billion in extra taxes. The NAM’s brief argued that the compact was a binding contract and that imposing retroactive tax liability could have detrimental implications for businesses that reasonably relied on the tax scheme. Unfortunately, the Supreme Court declined to review the case.


Related Documents:
NAM amicus brief  (December 23, 2016)