Bill Text: MI HB4709 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Michigan business tax; other; definition of tax year; clarify. Amends sec. 117 of 2007 PA 36 (MCL 208.1117).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2009-11-10 - Assigned Pa 142'09 With Immediate Effect [HB4709 Detail]
Download: Michigan-2009-HB4709-Engrossed.html
HB-4709, As Passed Senate, November 4, 2009
SUBSTITUTE FOR
HOUSE BILL NO. 4709
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending section 117 (MCL 208.1117).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 117. (1) "Tangible personal property" means that term as
defined in section 2 of the use tax act, 1937 PA 94, MCL 205.92.
(2) "Tax" means the tax imposed under this act, including
interest and penalties under this act, unless the term is given a
more limited meaning in the context of this act or a provision of
this act.
(3) "Tax-exempt person" means an organization that is exempt
from federal income tax under section 501(a) of the internal
revenue code, and a partnership, limited liability company, joint
venture, unincorporated association, or other group or combination
of organizations acting as a unit if all such organizations are
exempt from federal income tax under section 501(a) of the internal
revenue code and if all activities of the unit are exclusively
related to the charitable, educational, or other purposes or
functions that are the basis for the exemption of such
organizations from federal income tax, except the following:
(a) An organization exempt under section 501(c)(12) or (16) of
the internal revenue code.
(b) An organization exempt under section 501(c)(4) of the
internal revenue code that would be exempt under section 501(c)(12)
of the internal revenue code but for its failure to meet the
requirement in section 501(c)(12) that 85% or more of its income
must consist of amounts collected from members.
(4) "Tax year" means the calendar year, or the fiscal year
ending during the calendar year, upon the basis of which the tax
base of a taxpayer is computed under this act. If a return is made
for a fractional part of a year, tax year means the period for
which the return is made. Except for the first return required by
this act, a taxpayer's tax year is for the same period as is
covered by its federal income tax return. A taxpayer that has a 52-
or 53-week tax year beginning not more than 7 days before December
31 of any year is considered to have a tax year beginning after
December of that tax year. If the term tax year in this act is used
in reference to 1 or more previous or preceding tax years and those
referenced tax years are before January 1, 2008, then those
referenced tax years are deemed those same tax years during which
former 1975 PA 228 was in effect.
(5) "Taxpayer" means a person or a unitary business group
liable for a tax, interest, or penalty under this act.
(6) "Unitary business group" means a group of United States
persons, other than a foreign operating entity, 1 of which owns or
controls, directly or indirectly, more than 50% of the ownership
interest with voting rights or ownership interests that confer
comparable rights to voting rights of the other United States
persons, and that has business activities or operations which
result in a flow of value between or among persons included in the
unitary business group or has business activities or operations
that are integrated with, are dependent upon, or contribute to each
other. For purposes of this subsection, flow of value is determined
by reviewing the totality of facts and circumstances of business
activities and operations.
(7) "United States person" means that term as defined in
section 7701(a)(30) of the internal revenue code.
(8) "Unrelated business activity" means, for a tax-exempt
person, business activity directly connected with an unrelated
trade or business as defined in section 513 of the internal revenue
code.
Enacting section 1. This amendatory act is retroactive and is
effective for tax years beginning after December 31, 2007.
