Michigan Judges Revive Detroit’s Income Tax Claim on Appeal

A Delaware-based company failed to convince a Michigan appeals court that it shouldn’t have to pay $800,000 in Detroit income taxes because it lacked sufficient nexus with the city.

Apex Laboratories International Inc.'s officers and agents were located in the city of Detroit, where they took many actions on the company’s behalf.

“These actions are sufficient to show that there was a nexus between Apex and Detroit, and the Tax Tribunal erred when it ruled otherwise and granted Apex’s motion for summary disposition on this issue,” the Michigan Court of Appeals said in a 2-1 unsigned, unpublished opinion filed Thursday. ...