U.S. Supreme Court Speaks Regarding Retroactive Legislation Cases

DALLAS, Jan. 16, 2017 /PRNewswire/ -- As we reported in our tax release dated December 1, 2016, five taxpayers have requested that the U.S. Supreme Court grant certiorari to determine if the retroactive repeal of the Multistate Tax Compact by the Michigan Legislature violated the U.S. Constitution. Dot Foods, Inc. has also requested the U.S. Supreme Court to determine whether a retroactive change to Washington's Business and Occupation Tax violated the Due Process Clause of the Constitution.¹

On January 10, 2017, the U.S. Supreme Court requested that Michigan respond to the petitions filed with respect to the retroactive appeal of the Compact by February 9, 2017. The Court had planned to review the taxpayer petitions on January 19, 2017, but the review will now be postponed. In combination with the issuance of this request, the review of the Dot Foods case, which had been scheduled for January 19, 2017, has also been postponed. 

These developments are significant in that it appears that the Supreme Court has now linked the retroactive legislation cases. And, by asking for input from Michigan, it would appear that the Court is seriously contemplating hearing the cases. We expect to see some update to these proceedings later in February. A win for the taxpayer could mean refunds in both Michigan and Washington.

¹See Ryan release dated December 12, 2016.

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Ryan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the seventh largest corporate tax practice in the United States. With global headquarters in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a five-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 2,100 professionals and associates serves over 12,000 clients in more than 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at ryan.com.

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