September 13, 2011, Introduced by Rep. Nesbitt and referred to the Committee on Tax Policy.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending section 661 (MCL 206.661), as added by 2011 PA 38.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 661. (1) Except as otherwise provided in this part, the
tax base established under this part shall be apportioned in
accordance with this chapter.
(2) The tax base of a taxpayer whose business activities are
confined solely to this state shall be allocated to this state. The
tax base of a taxpayer whose business activities are subject to tax
both within and outside of this state shall be apportioned to this
state by multiplying the tax base by the sales factor calculated
under section 663. For a taxpayer that has a direct, or indirect
through 1 or more other flow-through entities, ownership interest
or
beneficial interest in a flow-through entity, that has business
activity
in this state, the taxpayer's
business income that is
directly attributable to the business activity of the flow-through
entity shall be apportioned to this state using an apportionment
factor determined under section 663 based on the business activity
of the flow-through entity.
(3) A taxpayer is subject to tax in another state in either of
the following circumstances:
(a) The taxpayer is subject to a business privilege tax, a net
income tax, a franchise tax measured by net income, a franchise tax
for the privilege of doing business, or a corporate stock tax.
(b) That state has jurisdiction to subject the taxpayer to 1
or more of the taxes listed in subdivision (a) regardless of
whether that state does or does not subject the taxpayer to that
tax.
Enacting section 1. This amendatory act takes effect January
1, 2012.