HB-4557,As Passed Senate, June 5, 2003                                      

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4557

                                                                             A bill to amend 1967 PA 281, entitled                                             

"Income tax act of 1967,"                                                   

by amending section 4 (MCL 206.4).                                          

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 4.  (1) "Board" means the state board of tax appeals.                  

2       (2) "Business income" means all income arising from                         

3   transactions, activities, and sources in the regular course of              

4   the taxpayer's trade or business and includes the following:                

5   (a) All income from tangible and intangible property if the                 

6   acquisition, rental, management,  and or disposition of the                

7   property constitutes integral parts of the taxpayer's regular               

8   trade or business operations.                                               

9   (b) Gains or losses from stock and securities of any foreign                

10  or domestic corporation and dividend and interest income.                   

11      (c) Income derived from isolated sales, leases, assignment,                 

1   licenses, divisions, or other infrequently occurring                        

2   dispositions, transfers, or transactions involving property if              

3   the property is or was used in the taxpayer's trade or business             

4   operation.                                                                  

5       (d) Income derived from the sale of a business.                             

6       (3) Not later than 2 years after the effective date of the                  

7   amendatory act that added subsection (2)(b), the department shall           

8   report the impact of the amendatory act that added subsection               

9   (2)(b) on the tax liability under this act of resident and                  

10  nonresident taxpayers to the house tax policy committee and the             

11  senate finance committee.