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Michigan Court of Appeals finds SBTA did not by implication repeal compact apportionment election provision

The Michigan Court of Appeals on Feb. 25 held that the Single Business Tax Act (SBTA) did not by implication repeal the apportionment election provision contained in the Multistate Tax Compact. As a result, the Court of Appeals held that the more heavily weighted sales factor apportionment formula under the SBTA for the 2005, 2006 and 2007 tax years was not mandatory, allowing taxpayers to elect to apportion their tax base to Michigan using the Compact’s equally weighted three-factor apportionment formula.

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