SB-0634, As Passed Senate, December 14, 2005

SUBSTITUTE FOR

SENATE BILL NO. 634

     A bill to amend 1975 PA 228, entitled

"Single business tax act,"

by amending section 45a (MCL 208.45a), as amended by 1999 PA 115.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 45a. (1) Except as provided in subsection  (2)  (4) and

for tax years beginning after December 31, 1998 and before January

1, 2006, all of the tax base, other than the tax base derived

principally from transportation, financial, or insurance carrier

services or specifically allocated, shall be apportioned to this

state by multiplying the tax base by a percentage, which is the sum

of all of the following percentages:

     (a) The property factor multiplied by 5%.

     (b) The payroll factor multiplied by 5%.

Senate Bill No. 634 (S-2) as amended December 13, 2005

     (c) The sales factor multiplied by 90%.

     (2) For tax years beginning after December 31, 2005 and before

January 1, [2008], all of the tax base, other than the tax base

derived principally from transportation, financial, or insurance

carrier services or specifically allocated, shall be apportioned to

this state by multiplying the tax base by a percentage, which is

the sum of all of the following percentages:

     (a) The property factor multiplied by [3.75%].

     (b) The payroll factor multiplied by [3.75%].

     (c) The sales factor multiplied by [92.5%].

     (3) For tax years beginning after December 31, [2007], all of

the tax base, other than the tax base derived principally from

transportation, financial, or insurance carrier services or

specifically allocated, shall be apportioned to this state by

multiplying the tax base by [A percentage, which is the sum of all of the

following percentages:

     (a) The property factor multiplied by 2.5%.

     (b) The payroll factor multiplied by 2.5%.

(c) The sales factor multiplied by 95%.]

(4) (2)  For tax years beginning after December 31, 1998 and

before January 1, 2000 if section 23(e) is not in effect, all of

the tax base, other than the tax base derived principally from

transportation, financial, or insurance carrier services or

specifically allocated, shall be apportioned to this state by

multiplying the tax base by a percentage, which is the sum of all

of the following percentages:

     (a) The property factor multiplied by 15%.

     (b) The payroll factor multiplied by 15%.

     (c) The sales factor multiplied by 70%.

(5) (3)  For purposes of this section, a taxpayer that has a

52- or 53-week tax year beginning not more than 7 days before

Senate Bill No. 634 (S-2) as amended December 13, 2005

December 31 of any year is considered to have a tax year beginning

after December 31 of that year.

[Enacting section 1.  This amendatory act does not take effect

unless all of the following bills of the 93rd Legislature are

enacted into law:

     (a) House Bill No. 4972.

     (b) House Bill No. 4980.

     (c) House Bill No. 5095.

     (d) House Bill No. 5096.

     (e) House Bill No. 5097.

     (f) House Bill No. 5098.

     (g) House Bill No. 5106.

     (h) House Bill No. 5107.

     (i) House Bill No. 5108.

     (j) Senate Bill No. 633.]