SB-0671, As Passed House, October 6, 2011
September 15, 2011, Introduced by Senator ROBERTSON and referred to the Committee on Finance.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending section 667 (MCL 206.667), as added by 2011 PA 38.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 667. (1) If the apportionment provisions of this part do
not fairly represent the extent of the taxpayer's business activity
in this state, the taxpayer may petition for or the state treasurer
may require the following, with respect to all or a portion of the
taxpayer's business activity, if reasonable:
(a) Separate accounting.
(b) The inclusion of 1 or more additional or alternative
factors that will fairly represent the taxpayer's business activity
in this state.
(c) The use of any other method to effectuate an equitable
allocation and apportionment of the taxpayer's tax base.
(2) An alternate method may be used only if it is approved by
the department.
(3) The apportionment provisions of this part shall be
rebuttably presumed to fairly represent the business activity
attributed to the taxpayer in this state, taken as a whole and
without a separate examination of the specific elements of the tax
base unless it can be demonstrated that the business activity
attributed to the taxpayer in this state is out of all appropriate
proportion to the actual business activity transacted in this state
and leads to a grossly distorted result or would operate
unconstitutionally to tax the extraterritorial activity of the
taxpayer.
(4) The filing of a return or an amended return is not
considered a petition for the purposes of subsection (1).
Enacting section 1. This amendatory act takes effect January
1, 2012.