The U.S. Supreme Court refused to question a Michigan tax change that companies including IBM Corp. and Procter & Gamble Co. say will hit them retroactively with a $1 billion bill.
The companies argued that the change violates the U.S. Constitution and the Multistate Tax Compact, a 50-year-old agreement among states for dividing the taxes owed by companies that do business in multiple jurisdictions. The Supreme Court rejected the appeals without comment. Justice Samuel Alito didn't participate in the cases.
Michigan state courts upheld the change, which was enacted through laws passed in 2007 and 2014. The first measure laid out a new formula for multistate companies to use in calculating their taxes, effective Jan. 1, 2008.
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