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Showing 12 posts by Michael C. Zahrt.

Michigan Supreme Court Clarifies Use Tax Exemption Apportionment Rules

On July 22, the Michigan Supreme Court decided Detroit Edison Company v. Department of Treasury, holding that the Michigan Use Tax apportionment rules apply in situations where property is simultaneously used for exempt and non-exempt purposes. The claim was initiated by Detroit Edison Company ("DTE") in response to a use tax audit by the Department of Treasury. The audit determined that DTE wrongly claimed an exemption from use tax for property used outside of its plant (transformers, fuses, circuit breakers, etc.), resulting in a deficiency assessment of over $13 million plus interest.  Read More ›

Categories: News & Events, Use Tax

New Law Allows Michigan Taxpayers to Appeal Tax Disputes without Paying First

New Law Allows Michigan Taxpayers to Appeal Tax Disputes without Paying FirstOn June 16, 2015, Gov. Rick Snyder signed into law Enrolled Senate Bill 100, which eliminates the requirement that taxpayers pay contested taxes, penalties and interest before appealing their liability to the Michigan Court of Claims. The bill was introduced by Senators Brandenburg, Horn, Zorn, Emmons, Colbeck, Schmidt, Hansen, Casperson, Nofs and Booher.

Prior to the enactment of this law, a taxpayer had two options to appeal an adverse tax assessment or decision:

  1. the taxpayer could appeal the case to the Michigan Tax Tribunal without paying disputed amounts; or
  2. the taxpayer could appeal the case to the Michigan Court of Claims, but only after paying the taxes, penalties, and interest assessed, even if those amounts were being contested. 
Read More ›

Categories: News & Events, Tax, Tax Disputes