Bill Text: MI SB0650 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Michigan business tax; replacement; nexus of a financial institution; clarify. Amends sec. 653 of 1967 PA 281 (MCL 206.653).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2011-10-20 - Assigned Pa 0183'11 With Immediate Effect [SB0650 Detail]
Download: Michigan-2011-SB0650-Introduced.html
SENATE BILL No. 650
September 15, 2011, Introduced by Senator BRANDENBURG and referred to the Committee on Finance.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending section 653 (MCL 206.653), as added by 2011 PA 38.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 653. (1) Every financial institution with substantial
nexus
in this state as determined under section 621 is subject to a
franchise tax. The franchise tax is imposed upon the tax base of
the financial institution as determined under section 655 after
allocation or apportionment to this state, at the rate of 0.29%.
(2) For purposes of this section, a financial institution has
substantial nexus in this state if the financial institution
satisfies any of the following:
(a) Has a physical presence in this state for a period of more
than 1 day during the tax year.
(b) Actively solicits sales in this state and has gross
receipts of $350,000.00 or more sourced to this state. As used in
this subdivision, "actively solicits" means that term as defined
under section 621.
(c) Has an ownership interest or a beneficial interest in a
flow-through entity, directly or indirectly through 1 or more other
flow-through entities, that has substantial nexus in this state as
provided under this section or section 621.
(3) (2)
The tax under this chapter is in
lieu of the tax
levied and imposed under chapter 11 of this part.
Enacting section 1. This amendatory act takes effect January
1, 2012.
