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CIT Technical Corrections Bills Introduced and Moving Forward Passage Expected by September 30

including Links to the New Michigan Corporate Income Tax Bills

September 16, 2011
Tax Appeals Alert

Michigan’s legislative leaders have introduced 32 Michigan Corporate Income Tax (CIT) technical correction bills with the support of the Administration. The Administration hopes to have the bills passed prior to September 30, 2011, at which time the Treasury will commence system software and form design for the CIT, which becomes effective January 1, 2012. There are 32 House bills and 32 identical Senate bills. The bill numbers, titles and links to the House bills can be found below.

For further information about any of the bills, please contact one of the firm’s SALT practitioners.

Introduced

HB 4937 of 2011

Income tax; income; sources based on where the benefit of a source is received; codify revenue administratives bulletin. Amends sec. 669 of 1967 PA 281 (MCL 206.669).

HB 4938 of 2011

Income tax; other; definition of gross receipts; replace with definition under former single business tax act. Amends sec. 607 of 1967 PA 281 (MCL 206.607).

HB 4939 of 2011

Income tax; returns; method of computing tax for portion of a tax year; clarify. Amends sec. 683 of 1967 PA 281 (MCL 206.683).

HB 4940 of 2011

Income tax; administration; definition of partnership and publicly traded partnership; include. Amends sec. 701 of 1967 PA 281 (MCL 206.701).

HB 4941 of 2011

Income tax; administration; filing threshold under corporate income tax; clarify for flow-through entities. Amends sec. 685 of 1967 PA 281 (MCL 206.685).

HB 4942 of 2011

Income tax; other; references to each tax base; eliminate to reflect single tax base. Amends sec. 663 of 1967 PA 281 (MCL 206.663).

HB 4943 of 2011

Income tax; administration; reference to treasurer; clarify state treasurer. Amends sec. 667 of 1967 PA 281 (MCL 206.667).

HB 4944 of 2011

Michigan business tax; replacement; nexus of a financial institution; clarify. Amends sec. 653 of 1967 PA 281 (MCL 206.653).

HB 4945 of 2011

Income tax; administration; deductions and withholdings provisions; clean up. Amends sec. 705 of 1967 PA 281 (MCL 206.705).

HB 4946 of 2011

Income tax; administration; definition of tax year for certain persons included in a unitary business group; clarify.

HB 4947 of 2011

Michigan business tax; replacement; administration. operation, and filing after enactment of corporate income tax; clarify.

HB 4948 of 2011

Income tax; administration; definition of actively solicits; codify written guidance previously issued.

HB 4949 of 2011

Income tax; income; certain adjustments to tax base; clarity.

HB 4950 of 2011

Income tax; credit; loophole for unitary business groups under the small business credit; eliminate.

HB 4951 of 2011

Income tax; other; definition of financial institution; eliminate outdated reference.

HB 4952 of 2011

Income tax; property tax credit; definition of income; clean up.

HB 4953 of 2011

Income tax; income; definition carve-out of business income for electric cooperatives; eliminate.

HB 4954 of 2011

Income tax; other; internal cite included with a credit for taxes withheld; correct.

HB 4955 of 2011

Income tax; administration; tax base and sales factor for a foreign person; clarify.

HB 4956 of 2011

Income tax; administration; definition of person; include flow-through entity.

HB 4957 of 2011

Income tax; property tax credit; definition of total household resources; clean up.

HB 4958 of 2011

Income tax; income; effective date of single factor apportionment of business income for transportation services; correct.

HB 4959 of 2011

Income tax; collections; deductions and withholdings by persons that disburse pension or annuity payments and flow-through entities; clarify.

HB 4960 of 2011

Income tax; returns; filing threshold, returns, and estimated payments required under corporate income tax; clarify.

HB 4961 of 2011

Income tax; administration; treatment of disregarded entities; clarify.

HB 4962 of 2011

Income tax; income; sourcing of receipts from certain sales; clarify.

HB 4963 of 2011

Income tax; other; apportionment of tax base for a flow-through entity; clarify.

HB 4964 of 2011

Income tax; other; definition of corporation; clarify.

HB 4965 of 2011

Income tax; administration; filing and reporting the withholdings by flow-through entities and certain persons; clarify and clean up.

HB 4966 of 2011

Income tax; property tax credit; treatment of senior citizens; clarify.

HB 4967 of 2011

Income tax; credit; provision to provide for recapture under certain circumstances of certain credits earned under previous business tax acts; create.

HB 4968 of 2011

Income tax; administration; definition of foreign operating entity and member; clean up.