On December 22, 2016, TEI filed an amicus brief with the U.S. Supreme Court in support of the taxpayers’ Petitions for a Writ of Certiorari in International Business Machines Corporation v. Michigan Department of Treasury, No. 16-698, Sonoco Products Company, et al. v. Michigan Department of Treasury, No. 16-687, Skadden, Arps, Slate, Meagher & Flom, LLP, v. Michigan Department of Treasury, No. 16-688, Gillette Commercial Operations North America and Subsidiaries, et al. v. Michigan Department of Treasury, No.
On January 5, 2016, TEI filed an amicus brief in support of the taxpayer's application for leave to appeal the Michigan Court of Appeals' decision in Gillette Commercial Operations North America v. Department of Treasury, Case No. 152588, and its four companion cases. Gillette upheld the validity of 2014 PA 282, which the Michigan Legislature enacted to retroactively overrule the Michigan Supreme Court's decision in International Business Machines Corp v Department of Treasury, 496 Mich. 642 (2014).
On October 13, 2015, the U.S. Supreme Court issued an order following TEI's recommendation to issue a "GVR order" in First Marblehead v. Massachusetts Commissioner of Revenue. First Marblehead involves the proper apportionment of financial institution's income under Massachusetts' financial institutions excise tax under the dormant Commerce Clause.
TEI Files Amicus Brief With U.S. Supreme Court in Massachusetts' First Marblehead Apportionment Case
On July 2, 2015, TEI filed an amicus brief with the U.S. Supreme Court in a Massachusetts case challenging the application of the internal consistency test, First Marblehead Corp. v. Massachusetts Commissioner of Revenue, No. 14-1422. First Marblehead involves the proper apportionment of financial institution's income under Massachusetts' financial institutions excise tax.
On May 18, 2015, the United States Supreme Court issued a decision in Comptroller v. Wynne, holding that Maryland's personal income tax- which did not offer its residents a full credit for income taxes paid to other states on income they earned in those states - was unconstitutional. The majority opinion (5-4), authored by Justice Alito, held that the tax violated the dormant Commerce Clause because it discriminated against interstate commerce. Justices Scalia, Thomas, and Ginsburg authored dissenting opinions on varying grounds.
TEI Files Amicus Brief with U.S. Supreme Court in Maryland's Comptroller v. Wynne Dormant Commerce Clause Case
On September 26, 2014, TEI filed an amicus brief with the U.S. Supreme Court in a case involving the limitations imposed by the federal Commerce Clause on a state's ability to tax business income earned outside the borders of that state (Comptroller v. Wynne). In a line of cases beginning with Complete Auto Transit v. Brady, the Court has consistently held that corporate income earned in multiple jurisdictions must be apportioned, with the domiciliary state taxing only its fair share.
On October 26, 2012, TEI filed an amicus brief with the U.S. Supreme Court in a case involving the characterization of income from the sale of assets as apportionable business income versus allocable nonbusiness income for state tax purposes, Kimberly-Clark v. Alabama Department of Revenue. The Institute's brief urged the high court to reverse lower court decisions in Alabama holding that gain from the sale of property used in a taxpayer's unitary business constituted nonbusiness income allocable in full to Alabama.
On February 24, 2011, TEI filed an amicus letter with the California Supreme Court urging the Court to grant the pending Petition for Review filed by the California Taxpayers's Association in Supreme Court Case No. S189996.
On March 24, 2010, TEI filed an amicus brief with the U.S. Supreme Court in Johnson Controls v. Kentucky. TEI argued that Kentucky legislation retroactively eliminating a taxpayer's ability to claim tax refunds undermines protections afforded by the Due Process Clause and raises fundamental questions about the availability of remedies.
TEI's brief was prepared under the aegis of TEI's State and Local Tax Committee. TEI Tax Counsel Daniel B. De Jong coordinated the preparation of the brief and was its principal author.
On April 28, 2009, TEI filed an amicus brief with the U.S. Supreme Court in support of the taxpayer in Geoffrey, Inc. v. Massachusetts Department of Revenue. In Geoffrey, the Massachusetts Supreme Judicial Court concluded substantial nexus could be established where a taxpayer's only business in the state was licensing intangible property that generates income for the taxpayer. TEI maintains the Massachusetts court erred by concluding the bright-line, physical presence test embraced by the U.S.