Bill Text: MI HB4605 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Individual income tax; administration; income tax revenue portion of the general fund; earmark to the transportation fund. Amends sec. 51 of 1967 PA 281 (MCL 206.51).
Spectrum: Partisan Bill (Republican 6-0)
Status: (Introduced - Dead) 2015-06-11 - Referred To Committee On Government Operations [HB4605 Detail]
Download: Michigan-2015-HB4605-Engrossed.html
HB-4605, As Passed House, June 10, 2015
SUBSTITUTE FOR
HOUSE BILL NO. 4605
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending section 51 (MCL 206.51), as amended by 2012 PA 223.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 51. (1) For receiving, earning, or otherwise acquiring
income from any source whatsoever, there is levied and imposed
under this part upon the taxable income of every person other than
a corporation a tax at the following rates in the following
circumstances:
(a)
Before May 1, 1994, 4.6%.
(b)
After April 30, 1994 and before January 1, 2000, 4.4%.
(c)
For tax years that begin on and after January 1, 2000 and
before
January 1, 2002, 4.2%.
(d)
For tax years that begin on and after January 1, 2002 and
before
January 1, 2003, 4.1%.
(e)
On and after January 1, 2003 and before July 1, 2004,
4.0%.
(f)
On and after July 1, 2004 and before October 1, 2007,
3.9%.
(a) (g)
On and after October 1, 2007 and
before October 1,
2012, 4.35%.
(b) (h)
Beginning on and after October 1,
2012, 4.25%.
(2)
The following percentages of the net revenues collected
under
this section shall be deposited in the state school aid fund
created
in section 11 of article IX of the state constitution of
1963:
(a)
Beginning October 1, 1994 and before October 1, 1996,
14.4%
of the gross collections before refunds from the tax levied
under
this section.
(b)
After September 30, 1996 and before January 1, 2000, 23.0%
of
the gross collections before refunds from the tax levied under
this
section.
(2) (c)
Beginning January 1, 2000, that
percentage of the
gross collections before refunds from the tax levied under this
section that is equal to 1.012% divided by the income tax rate
levied under this section shall be deposited in the state school
aid fund created in section 11 of article IX of the state
constitution of 1963.
(3) In addition to the distribution under subsection (2), the
following amounts collected under this section shall be deposited
and distributed as provided in section 10(1)(k) of 1951 PA 51, MCL
247.660:
(a) Beginning October 1, 2015 through September 30, 2016,
$442,000,000.00.
(b) Beginning October 1, 2016 through September 30, 2017,
$492,000,000.00.
(c) Beginning October 1, 2017 through September 30, 2018,
$617,000,000.00.
(d) Beginning October 1, 2018 through September 30, 2019,
$792,000,000.00.
(e) Beginning October 1, 2019 and each fiscal year thereafter,
an amount equal to $792,000,000.00 multiplied by a fraction, the
numerator of which is the United States consumer price index for
the state fiscal year prior to the fiscal year for which the
adjustment is being made and the denominator of which is the United
States consumer price index for the 2017-2018 state fiscal year.
The resultant product shall be rounded up to the nearest $100.00
increment. However, the distribution under this subsection shall
not be reduced to less than the distribution in the immediately
preceding state fiscal year. As used in this section, "United
States consumer price index" means the average over the period from
October 1 through September 30 of the United States consumer price
index for all urban consumers as defined and reported by the United
States Department of Labor, Bureau of Labor Statistics.
(4) (3)
The department shall annualize
rates provided in
subsection
(1) as necessary. for tax years that end after April 30,
1994.
The applicable annualized rate
shall be imposed upon the
taxable income of every person other than a corporation for those
tax years.
(5) (4)
The taxable income of a nonresident
shall be computed
in the same manner that the taxable income of a resident is
computed, subject to the allocation and apportionment provisions of
this part.
(6) (5)
A resident beneficiary of a trust
whose taxable income
includes all or part of an accumulation distribution by a trust, as
defined in section 665 of the internal revenue code, shall be
allowed a credit against the tax otherwise due under this part. The
credit shall be all or a proportionate part of any tax paid by the
trust under this part for any preceding taxable year that would not
have been payable if the trust had in fact made distribution to its
beneficiaries at the times and in the amounts specified in section
666 of the internal revenue code. The credit shall not reduce the
tax otherwise due from the beneficiary to an amount less than would
have been due if the accumulation distribution were excluded from
taxable income.
(7) (6)
The taxable income of a resident
who is required to
include income from a trust in his or her federal income tax return
under the provisions of 26 USC 671 to 679, shall include items of
income and deductions from the trust in taxable income to the
extent required by this part with respect to property owned
outright.
(8) (7)
It is the intention of this section
that the income
subject to tax of every person other than corporations shall be
computed in like manner and be the same as provided in the internal
revenue code subject to adjustments specifically provided for in
this part.
(9) (8)
As used in this section:
(a) "Person other than a corporation" means a resident or
nonresident individual or any of the following:
(i) A partner in a partnership as defined in the internal
revenue code.
(ii) A beneficiary of an estate or a trust as defined in the
internal revenue code.
(iii) An estate or trust as defined in the internal revenue
code.
(b) "Taxable income" means taxable income as defined in this
part subject to the applicable source and attribution rules
contained in this part.
