CMS Energy Loses Bid for $7.8 Million Michigan Income Tax Refund

The Michigan Treasury Department was right to tax 100% of a CMS Energy Corp. unit’s wholesale electricity sales as made within the state, regardless of where the end-users reside, a state tax judge ruled Thursday.

CMS argued that only 89% of the power subsidiary Consumers Energy Co. produced from 2013 to 2016 was sold within the state, entitling it to a $7.8 million corporate income tax refund. Michigan Tax Tribunal Judge Patricia L. Halm agreed with the treasury department that an intermediary, the Midcontinent Independent System Operator, accepts delivery within Michigan of 100% of the company’s energy.

The parties’ disagreement ...