Michigan Supreme Court Rejects Disney's Appeal in Decade-Long Tax Dispute

The Michigan Supreme Court has declined to hear an appeal from The Walt Disney Company in a long-running dispute with the state treasurer over an investigation into unpaid taxes.

The high court's decision on April 7, 2026, upholds a lower court order that found state Treasurer Rachel Eubanks had taken timely enforcement action against the company, meaning Disney must now resolve the tax issue directly with the state Treasury Department.

A Decade-Long Legal Battle

The tax dispute between Disney and Michigan has lasted over a decade. The state had been investigating whether Disney owed additional taxes, but the company challenged the investigation in court.

A lower court ruled that Disney must work out the tax issue directly with the state Treasury Department, and the Michigan Supreme Court has now declined to hear Disney's appeal of that decision.

The case highlights ongoing tensions between large corporations and state governments over tax obligations, an issue that has become increasingly contentious in recent years.

Statute of Limitations Challenge

Disney argued that the state had passed the 10-year window for filing a complaint and challenged the tax collector in court in 2021 based on that statute of limitations. Since then, the case has bounced back and forth between the Oakland County Circuit Court and the Michigan Court of Appeals.

In a brief order on Friday, the high court denied Disney's appeal of a lower court order that found state Treasurer Rachel Eubanks had taken timely enforcement action against the company.

What This Means for Disney

The ruling could force Disney to pay back taxes owed to Michigan, which would be a significant financial hit for the entertainment conglomerate. The case will now return to the state Treasury Department, where Disney and Michigan officials will have to directly negotiate a resolution to the unpaid tax dispute.

Broader Implications

Governor Gretchen Whitmer has been a vocal advocate for holding all companies accountable to pay their fair share of taxes to support critical public services in the state.

"This ruling underscores the ongoing tensions between large corporations and state governments over tax obligations, an issue that has become increasingly contentious in recent years," Lansing Today reported.

It remains to be seen whether Disney will ultimately have to pay back taxes to Michigan or if they can reach a settlement with state officials.

The Michigan Supreme Court's decision sends a clear message that the state will pursue tax collection vigorously, even against major corporations with deep pockets.