State of Michigan may owe General Motors $116 million in tax refunds after court ruling
By APTuesday, April 21, 2009
Michigan may owe GM $116M in tax refunds
LANSING, Mich. — General Motors Corp. may get tax refunds totaling $116 million after a judge ruled for the automaker in its dispute with the state.
Ingham County Circuit Judge Rosemarie Aquilina on Friday declared unconstitutional a 2007 Michigan law that retroactively made GM pay use taxes on vehicles driven by employees for testing and marketing.
The automaker claimed it unnecessarily paid taxes on demonstration vehicles for more than a decade.
The Department of Treasury denied GM’s request for refunds, pointing to the 2007 law.
The judge ruled GM is exempt from paying use taxes on vehicles used for demonstration purposes. She next will determine what GM is owed.
Aquilina faulted lawmakers for passing the bill without committee hearings to avoid public scrutiny.
Information from: Lansing State Journal, www.lansingstatejournal.com
