Questions Presented
Whether the state courts below properly held -- in conflict with decisions of the Supreme Court and other lower courts -- that a state tax law having indefinite retroactive reach with respect to tax refunds otherwise available under state law satisfies due process even when applied to deny refunds owed to a taxpayer from the preceding five-year period.
Case Updates
Cert. petition denied
January 18, 2011
U.S. Chamber urges Supreme Court to review retroactive amendments to state tax laws case
November 12, 2010
NCLC urged the Supreme Court to review retroactive amendments to Michigan’s tax laws. In this case, the Michigan Department of Treasury assessed a motor vehicle financing company over $21 million in back taxes for contributions to an employee trust fund. A Michigan appeals court struck down the back taxes because the contributions did not constitute employee compensation under state law. In its brief, NCLC argued that the retroactively-applied law under which the back taxes were assessed violates due process limits on retroactive tax legislation. NCLC warned that retroactive tax legislation creates economic uncertainty and undermines confidence in the rule of law.