Court: Nothing Wrong With Law To Stop Corporate Tax Refunds

LANSING (AP) - In a victory for the state's checkbook, the Michigan appeals court says there's nothing illegal about a retroactive law that prevents more than $1 billion in tax refunds for out-of-state companies.

Gov. Rick Snyder last year signed a law in response to a $6 million state Supreme Court decision in favor of IBM. Officials warned that the decision would make Michigan vulnerable to a flood of refund requests from other companies.

In an opinion released Wednesday, the appeals court says it's a "legitimate legislative action" to eliminate a revenue loss related to a perceived misinterpretation of law. The court affirmed a ruling from the Court of Claims.

The legal dispute involves tax liability for certain companies from 2008 through 2010.

© Copyright 2015 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.