Energy Company Avoids $3M Michigan Income Tax on Sale to Vectren

Michigan can’t include the $80 million acquisition of an out-of-state company in the acquired company’s “sales” used to calculate Michigan corporate income tax, a state court of appeals panel ruled Thursday.

The opinion from Judges David H. Sawyer and Michael J. Riordan held that the trial court properly denied the Michigan Department of Treasury’s calculation that relied on the state’s “single sales factor” income tax apportionment formula. The state claimed it was entitled to $3 million from the sale of Minnesota-based Minnesota Limited Inc. to Indiana-based Vectren Infrastructure Services Corp. in 2011.

At the time of the sale, Minnesota Limited ...