By Andrew Chung | WASHINGTON

WASHINGTON The U.S. Supreme Court on Monday declined to hear a challenge by several major corporations to a Michigan law that retroactively changed the way businesses are taxed in the state, leading to $1 billion extra for government coffers.

The justices turned away appeals by Goodyear Tire and Rubber Co (GT.O), IBM Corp (IBM.N), AT&T Inc's (T.N) DirecTV, Monster Beverage Corp (MNST.O) and others of a lower court's ruling in favor of the state. The companies argued that Michigan's retroactive change to its tax regime violated their rights to due process under the U.S. Constitution.

The Supreme Court also refused to take up an appeal by closely held Dot Foods Inc over a lower court ruling favoring Washington state in a similar retroactive tax dispute.

Before 2008, companies with activities in Michigan and outside the state could limit their tax liability by apportioning their income using a three-factor formula set out under a decades-old agreement called Multistate Tax Compact, which took into account a company's sales, property and payroll in the state.

That compact, which Michigan joined in 1970, helped to avoid duplicative taxation of companies among member states. Click here to read the rest of the article.