Michigan Court of Appeals Affirms Tax Tribunal’s Denial of Corporate Income Tax Refund

The Michigan Court of Appeals affirmed the Tax Tribunal’s decision denying the taxpayer’s refund request for corporate income tax paid from 2013 to 2016. The dispute centered on whether the taxpayer’s wholesale electricity sales to the Midcontinent Independent System Operator (MISO) should be sourced to Michigan for tax purposes. The court found that, under Michigan law, electricity sales are sourced based on the contractual point of delivery, which, in this case, was Michigan, where the taxpayer delivered electricity to MISO. The court rejected arguments that sales should be sourced based on the electricity’s ultimate destination after MISO’s involvement. [CMS Energy ...