Fall 2018

Importantly, Tax in the Great Lakes State fulfills all of the Section’s Purposes to:

• Study the laws and procedures pertaining to the law of taxation and to promote the fair and just administration of local, state, and federal tax laws;
• Study and report upon proposed, necessary, or desirable legislation;
• Promote throughout the State of Michigan, the legal education of members of the bar and the public on the subject of taxation by sponsoring meetings, institutes, and conferences; and
• Promote the Section through outreach programs.

I hope you find Tax in the Great Lakes State informative and perhaps even entertaining. I welcome your feedback about how we can make the next volume even better.

Jackie J. Cook, Taxation Section Chair
The Mike Cox Law Firm, PLLC
jcook@mikecoxlaw.com

By Jackie Cook, The Mike Cox Law Firm

Taxpayers in Michigan have the option of filing a state tax claim against the Michigan Department of Treasury in the Court of Claims, which has statutory power over major claims against the State of Michigan and its departments. Although the Court of Claims offers an online tool for reviewing tax case dockets, opinions and orders are not currently available through the Court’s website. In order to fulfill our Purpose to study tax laws, including case law, for the purpose of promoting fair and just administration of tax cases, the Taxation Section has been collaborating with the Court of Claims on a way to make decisions available. Although Court of Claims decisions are not precedential, it can be helpful for clients to be aware of how the Court has ruled in cases involving similar facts and law.

I am pleased to announce that, with the support of Chief Judge Christopher Murray, the Taxation Section now offers access to all recently issued decisions issued in Court of Claims tax cases. So far, we have posted over 60 decisions from 2017 and 2018. I invite you to visit the Taxation Section’s Court of Claims Orders and Opinions page.

With so many cases, it may be difficult to find cases involving a particular issue quickly, so in order to enhance your experience, we are offering members a comprehensive case summary which we intend to update quarterly as new decisions are received from the Court, also available here.

A very special “thank you” to Section Member Negah McKevitt of General Motors for the countless hours spent reviewing the 60+ decisions and preparing the comprehensive case summary. The Taxation Section greatly appreciates Negah’s contribution.

By Wayne D. Roberts, Partner, Varnum LLP

Ford Motor Company v. Treasury, Michigan Court of Appeals Docket #338784 (May 29, 2018) (unpublished), application for leave to appeal in the Michigan Supreme Court pending, MSC Case #158061:

Ford requested a refund of motor fuel tax paid on fuel that was placed in newly manufactured vehicles and used to test the vehicles, transport the vehicles from assembly to shipping, and move vehicles off of trucks after shipping to non-Michigan locations . . . . The parties agreed that the vehicles were not driven on Michigan roads or highways, and as a result, the fuel was used for a nontaxable purpose.  Despite the fact that the Ford vehicles at issue were filled with 4 to 10 gallons of fuel, depending on the model, Treasury refused to refund more than the tax paid with respect to 3.2 gallons of fuel per vehicle because Treasury argued that Ford did not combust all of the fuel placed in the vehicles.  At informal conference, Treasury indicated that it required substantiation before issuing any further refunds, and the hearing referee advised that affidavits from Ford engineers would be sufficient.  Upon receipt of such affidavits, however, Treasury continued to deny Ford's refund claim and requested fuel specification sheets or other forms of documentation that were no longer retained by Ford.  The Court of Claims granted summary disposition in favor of Treasury, holding that MCL 207.1048 allows Treasury "wide latitude in determining whether a taxpayer has met its burden of substantiation" when a refund of motor fuel tax is requested.  Ford appealed to the Michigan Court of Appeals.  The Court of Appeals upheld the grant of summary disposition, holding that the statute permits Treasury to "investigate a refund claim to the extent it considers necessary" before issuing a motor fuel tax refund.  Ford has filed an application for leave to appeal this decision.

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The Tribunal is excited to announce the appointment of David B. Marmon as the Tribunal’s new Chair. Judge Marmon replaces Steven H. Lasher, who retired in June. The Tribunal is also pleased to announce the appointment of Marcus Abood to fill the Appraiser Member vacancy and Victoria Enyart who was appointed to fill the Assessor Member vacancy.

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• All Articles
• Chair Letter
• State and Local Tax
• Public Policy

Please join us at an upcoming Taxation Section event. To stay current on Section events, please visit our Events page.

Annual Meeting & Past Chairs Networking Dinner

September 18, 5:00-8:00 p.m., the Townsend Hotel, 100 Townsend St., Birmingham

Please join the Section at its Annual Meeting & Past Chairs Networking Dinner at the Townsend Hotel in Birmingham. The Annual Meeting is from 5:00–5:30 p.m., and the networking dinner is from 5:30–8:00 p.m. Cost for dinner: Taxation Section members-$40; Non-Section members-$60. Register today. No onsite registration available.

Tax Court Luncheon

September 23, 12:00-2:30 p.m., Doubletree Suites by Hilton, 525 W. Lafayette Blvd., Detroit

The Tax Court Luncheon provides an opportunity for interested practitioners and students to hear directly from Tax Court Judge Patrick J. Urda about the Tax Court. This will include a brief speech/presentation by the Judge, which will be followed by networking with fellow members. Register today. No onsite registration available. Cost: taxation section member-$20; government attorneys & law students-Free; all other registrants-$35.

Employee Benefits Committee DOL Presentation

October 17, 9:00-11:00 a.m.

Join the Taxation Section today.

If you’re already a Taxation Section Member, make sure to Join a Committee today. Members of our five Committees have unique opportunities to get involved, such as writing opportunities or presenting at a conference or seminar.

Have an idea for an article? Contact our Michigan Tax Lawyer editor, Mindi Johnson, mjohnson@fosterswift.com.

Are you a newer tax attorney looking for other ways to contribute and get involved with the Taxation Section? Contact Taxation Section Chair Jackie Cook, jcook@mikecoxlaw.com

Chair: Jackie J. Cook

Taxation Section Website