Overview
Peter Faber assessed possible issues from Michigan’s retroactive withdrawal from the Multistate Tax Compact. He noted that “the whole concept of retroactivity has been very controversial,” and Michigan’s six-year timeframe is “a long time, so that could be an issue.” Mr. Faber continued that “there are extreme situations where retroactivity is clearly OK. But I think most people feel that in general, retroactive anti-taxpayer legislation is dirty pool, and that the burden ought to be really on the states to show that there’s a good reason for retroactivity.”