U.S. Supreme Court rejected a bid by a Ford unit for a $16 million refund

Article by Christian A., on January 19, 2011

The U.S. Supreme Court denied an appeal by a Ford Motor Co. unit to get a $16 million refund on its Michigan taxes related to a dispute over the power of states to impose levies retroactively.

The Supreme Court upheld a ruling by a Michigan court that had rejected Ford’s request for a refund of sales taxes that the company paid on vehicles sold to people who later defaulted on their loans.

The case is centered on a Michigan requirement that the entire sales tax has to be paid up front, even in instances when the consumer is paying by installments.

There was a 2006 ruling (Ford is not involved) where a Michigan court ruled that companies that pay the sales tax for buyers can take a deduction if the consumers ultimately default. The tax laws were then amended by the Michigan legislature, aiming to overturn the court decision and block companies that are aiming to get up to $100 million in refunds.

Michigan courts then clarified that the amendment indicated that Ford wasn't entitled to a $16 million refund it was seeking on taxes paid over a five-year period.

At the Supreme Court, Ford cited a 1994 high court ruling that said the Constitution bars retroactive tax increases that reach back more than a “modest” period of time.

The justices in this case had affirmed a tax increase that extended back 14 months. Michigan Attorney General Michael A. Cox said that the 1994 ruling isn’t applicable to the Ford case since the state's legislature was correcting a misinterpretation by the courts, not enacting a new retroactive tax.

Topics: united states, ford

If you liked the article, share on:

Comments

Recommended

In the automotive industry, most brands will do what they can to expand their offerings to be present in every potential niche there is. The goal is clearly to increase...
by - April 30, 2017
Just days after unveiling the refreshed 2018 Toyota Yaris hatchback to the North American public at the 2017 New York Auto Show, the Japanese company is now disclosing how much...
by - April 30, 2017
The next generation Volvo XC60 will be soon on its way to dealerships and customers as the Swedish carmaker has already commenced production of the mid-sized sports utility vehicle at...
by - April 30, 2017
In September 27, 2016, Porsche initially filed for a patent that is the “Unique Active Rear Diffuser”. And earlier this week, on April 27, 2017, the United States Patent and...
by - April 29, 2017
The Insurance Institute for Highway Safety (IIHS) has given its Top Safety Pick+ award to the redesigned version of the 2017 Kia Cadenza. This was a result of excellent a...
by - April 29, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries