Michigan: Taxpayers may not elect to apportion income based on MTC three-factor formula

November 2012


On November 20, 2012, in a per curiam decision, the Michigan Court of Appeals denied a taxpayer's right to elect to apportion its income using the equally weighted three-factor formula provided in the Multistate Tax Compact. The Michigan Business Tax Act repealed by implication the election provision found in the Compact and the taxpayer did not seek permission to use an alternative apportionment method. [International Business Machines Corp. v. Department of Treasury, Mich. Ct. of App., No. 306618, 11/20/12]

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