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State House approves fix to court decision that could cost state more than $1B

Lester Graham
Michigan Radio
The Michigan House of Representatives. Union members protested today in a State House committee room.

State lawmakers are working to fix a situation caused by a Michigan Supreme Court decision that could end up costing the state more than $1 billion this year.

The court ruled in July that certain out-of-state companies can calculate their tax liabilities using an old tax system that would cost them less. The state House approved legislation Tuesday that would reverse that decision.  

Lawmakers say the Supreme Court’s ruling was wrong.

“No legislature, no matter who the administration was or who was here, ever would put together a piece of tax legislation that would benefit out-of-state companies versus in-state companies,” said state Rep. Joe Haveman, R-Holland, who chairs the committee that sets the House’s budget priorities.

“We had to fix it.”

Senate Bill 156 now goes to the state Senate. The state Supreme Court could still decide to revisit its ruling.