SENATE BILL No. 634

 

 

June 22, 2005, Introduced by Senator CASSIS and referred to the Committee on Finance.

 

 

 

     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) 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%.

 

     (c) The sales factor multiplied by 90%.

 


     (2) For tax years beginning after December 31, 2005, 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 the sales factor.

 

     (3)  (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%.

 

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

 

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

 

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

 

after December 31 of that year.