The U.S. Supreme Court refused to question a Michigan tax changethat companies including IBM Corp. and Procter & Gamble Co. saywill 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-oldagreement among states for dividing the taxes owed by companiesthat do business in multiple jurisdictions. The Supreme Courtrejected the appeals without comment. Justice Samuel Alito didn'tparticipate in the cases.
Michigan state courts upheld the change, which was enactedthrough laws passed in 2007 and 2014. The first measure laid out anew formula for multistate companies to use in calculating theirtaxes, effective Jan. 1, 2008.
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