Gov. Snyder signs bill to avert potential $1.1 billion loss
LANSING, Mich. - Gov. Rick Snyder has signed a bill to clarify that Michigan never intended to give out-of-state companies a lower tax liability in a 2007 business tax overhaul.
The legislation is designed to ensure the state isn't forced to pay $1.1 billion in refunds in 134 cases after a July ruling from the Michigan Supreme Court in a case involving IBM. The administration and lawmakers worried the court's 4-3 decision could affect other cases in the 2008, 2009 and 2010 tax years.
Snyder said in statement Friday that the bill is a "common-sense solution" encouraging companies to invest and create jobs in Michigan. The state estimates most of the $1.1 billion in refunds would have been paid in the fiscal year that starts in October, throwing the budget out of balance.