Tmw Enterprises Inc v. Department of Treasury

In this tax dispute, we must decide whether a subchapter S corporation 1 is a “corporation” within the meaning of MCL 208.3(3), § 3(3) of the Single Business Tax Act (SBTA), MCL 208.1 et seq. The Court of Claims ruled that § 3(3) is ambiguous and concluded that an S corporation is not a corporation within the meaning of § 3(3). We disagree, reverse in part, and remand for further proceedings. We hold that § 3(3) of the SBTA is clear and unambiguous and that the term “corporation” as used in that subsection includes S corporations.

I. FACTS AND PROCEDURAL BACKGROUND

Plaintiff is a subchapter S…