Michigan Justices Probe Treasury’s Formula for Apportioning Sale

Several Michigan Supreme Court justices pressed a state attorney at arguments Wednesday on the Michigan treasury department’s decision to attribute 70% of the income from the sale of an out-of-state company to Michigan.

The department asked to challenge a state appeals court decision that it was unconstitutional to apply the state’s “single sales factor” income tax apportionment formula to the taxpayer in this case. The state claimed it was entitled to $3 million from the $80 million sale of Minnesota-based Minnesota Limited Inc. to Indiana-based Vectren Infrastructure Services Corp. in 2011.