Taxes - Mi43. Will case law concerning the retaliatory tax, such as TIG Ins Co v Dep't of Treasury, and Prudential Property & Cas Ins Co v Dep't of Treasury, which were decided in SBT years, be applied equally to the MBT?

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Mi43. Will case law concerning the retaliatory tax, such as TIG Ins Co v Dep't of Treasury, and Prudential Property & Cas Ins Co v Dep't of Treasury, which were decided in SBT years, be applied equally to the MBT?

The Michigan Insurance Code imposes the retaliatory tax on a foreign insurer when that insurer's state of incorporation would impose a total tax burden on a Michigan insurer that is "greater in the aggregate" than the total tax burden that Michigan would impose on the foreign insurer. MCL 500.476a. Though the total tax burden is calculated by reference to one of Michigan's business taxes, the retaliatory tax is a stand-alone tax. It is administered in connection with the SBT or the MBT but is not a part of either tax. Both TIG and Prudential were decided under the retaliatory tax imposed by the Insurance Code. 464 Mich 548 (2001); 272 Mich App 269 (2006); cert denied at 480 Mich 863 (2007).

Therefore, existing case law will control to the extent it discusses and interprets the retaliatory tax. The relationship between the retaliatory tax and the MBT is similar to that of the retaliatory tax and SBT making existing case law relevant to the MBT.