June 27, 2006, Introduced by Reps. Ward and Stakoe and referred to the Committee on Tax Policy.
A bill to provide for the imposition, levy, computation,
collection, assessment, and enforcement, by lien or otherwise, of
fees on certain commercial, business, and financial activities; to
prescribe the manner and times of making certain reports and paying
taxes; to prescribe the powers and duties of certain public
officers and state departments; to permit the inspection of
records; to provide for interest and penalties on unpaid fees; to
provide exemptions, credits, and refunds; to provide penalties; to
provide for the disposition of funds; and to provide for the
interrelation of this act with other acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"business activities licensing fee act".
Sec. 2. As used in this act:
(a) "Sale" or "sales" means the amounts received by the person
liable for a fee under this act as consideration from any of the
following:
(i) The transfer of title to, or possession of, property that
is stock in trade or other property of a kind that would properly
be included in the inventory of the person liable for a fee under
this act if on hand at the close of the calendar year or property
held by the person liable for a fee under this act primarily for
sale to customers in the ordinary course of its trade or business.
(ii) The performance of services that constitute business
activities other than those included in subparagraph (i), or any
combination of business activities described in this subparagraph
and subparagraph (i).
(iii) The rental, lease, licensing, or use of tangible or
intangible property that constitutes business activity.
(b) "Sale" or "sales" does not include dividends, interest,
and royalties received by the person liable for a fee under this
act to the extent deducted from the sales except those royalties
paid to a franchisor as consideration for the use outside of this
state of trade names, trademarks, and similar intangible property.
Sec. 3. Beginning on and after January 1, 2008, and except as
provided in this act, there is levied and imposed a business
license fee as specified upon every person with the following
amount of sales allocated or apportioned to this state:
(a) Sales of $350,001.00 or more but equal to or less than
$500,000.00, a fee of $1,000.00.
(b) Sales of $500,001.00 or more but equal to or less than
$750,000.00, a fee of $2,000.00.
(c) Sales of $750,001.00 or more but equal to or less than
$1,000,000.00, a fee of $2,500.00.
(d) Sales of $1,000,001.00 or more but equal to or less than
$2,500,000.00, a fee of $5,000.00.
(e) Sales of $2,500,001.00 or more but equal to or less than
$5,000,000.00, a fee of $7,500.00.
(f) Sales of $5,000,001.00 or more but equal to or less than
$10,000,000.00, a fee of $15,000.00.
(g) Sales of $10,000,001.00 or more but equal to or less than
$20,000,000.00, a fee of $30,000.00.
(h) Sales of $20,000,001.00 or more but equal to or less than
$30,000,000.00, a fee of $50,000.00.
(i) Sales of $30,000,001.00 or more but equal to or less than
$40,000,000.00, a fee of $75,000.00.
(j) Sales of $40,000,001.00 or more but equal to or less than
$50,000,000.00, a fee of $100,000.00.
(k) Sales of $50,000,001.00 or more but equal to or less than
$60,000,000.00, a fee of $150,000.00.
(l) Sales of $60,000,001.00 or more but equal to or less than
$70,000,000.00, a fee of $200,000.00.
(m) Sales of $70,000,001.00 or more but equal to or less than
$80,000,000.00, a fee of $250,000.00.
(n) Sales of $80,000,001.00 or more but equal to or less than
$90,000,000.00, a fee of $300,000.00.
(o) Sales of $90,000,001.00 or more but equal to or less than
$100,000,000.00, a fee of $500,000.00.
(p) Sales of $100,000,001.00 or more, a fee of $1,000,000.00.
Sec. 4. (1) Sales in this state are total sales of the person
liable for a fee under this act in this state during the calendar
year.
(2) For a foreign person, the sales are total sales of the
person liable for a fee under this act in this state during the
calendar year.
(3) Sales of tangible personal property are in this state if
the tangible personal property is shipped or delivered to any
purchaser within this state regardless of the free on board point
or other conditions of the sales.
(4) Sales, other than sales of tangible personal property, are
in this state in any of the following circumstances:
(a) The business activity related to the sales is performed in
this state.
(b) The business activity related to the sales is performed
both in and outside this state and, based on costs of performance,
a greater proportion of the business activity is performed in this
state than is performed outside this state.
(c) The receipts are derived from services performed for
planning, design, or construction activities within this state.
Sec. 5. A person with business activity in this state shall
file a business license application with the department in the form
and content prescribed by the department on or before January 1 for
the following year and pay the business license fee as prescribed
in section 3 if that person had $350,001.00 or more in sales in the
immediately preceding calendar year.