HOUSE BILL No. 5273


     October 14, 1997, Introduced by Reps. Crissman, Hammerstrom, Richner, Goschka, DeHart, Martinez, Dalman, Bodem, McBryde and Birkholz and referred to the Committee on Tax Policy.


        A bill to amend 1967 PA 281, entitled

   "Income tax act of 1967,"

   (MCL 206.1 to 206.532) by adding section 266.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 266.  (1) FOR THE 1997 TAX YEAR AND EACH TAX YEAR AFTER

 2    THE 1997 TAX YEAR, A TAXPAYER MAY CLAIM A CREDIT AGAINST THE TAX

 3    IMPOSED BY THIS ACT EQUAL TO 50% OF THE QUALIFIED LOSSES FOR THE

 4    TAX YEAR, NOT TO EXCEED $500.00 PER TAX YEAR.

 5         (2) IF THE CREDIT ALLOWED UNDER THIS SECTION EXCEEDS THE TAX

 6    LIABILITY OF THE TAXPAYER FOR THE TAX YEAR, THAT PORTION OF THE

 7    CREDIT THAT EXCEEDS THE TAX LIABILITY SHALL NOT BE REFUNDED TO

 8    THE TAXPAYER.

 9         (3) AS USED IN THIS SECTION, "QUALIFIED LOSSES" MEANS THE

10    VALUE OF MONEY OR PROPERTY OWNED BY THE TAXPAYER THAT WAS STOLEN

11    OR LOST DURING THE TAX YEAR DUE TO CRIMINAL ACTIVITY IF THE


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 1    TAXPAYER REPORTED THE LOSS TO AND FILED A COMPLAINT WITH THE

 2    APPROPRIATE LAW ENFORCEMENT AGENCY AND TO THE EXTENT THE LOSS WAS

 3    NOT COVERED BY INSURANCE.


















































   04331'97          Final page.                            RJA