HB-5151, As Passed House, October 11, 2007

SUBSTITUTE FOR

HOUSE BILL NO. 5151

     A bill to amend 1975 PA 228, entitled

"Single business tax act,"

by amending section 53 (MCL 208.53).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 53. (1) Sales, other than sales of tangible personal

property, are in this state if:

     (a) The business activity is performed in this state.

     (b) The business activity is performed both in and outside

this state and, based on costs of performance, a greater proportion

of the business activity is performed in this state than is

performed outside this state.

     (c) Receipts derived from services performed for planning,

design, or construction activities within this state shall be

deemed Michigan receipts.

     (2) Notwithstanding the provisions of subsection (1), for tax

years beginning on and after November 1, 2005, receipts derived by

a mortgage company from the origination or sale of a loan secured

by residential real property is deemed a sale in this state only if

1 or more of the following apply:

     (a) The real property is located in this state.

     (b) The real property is located both within this state and 1

or more other states and more than 50% of the fair market value of

the real property is located within this state.

     (c) More than 50% of the fair market value of the real

property is not located in any 1 state and the borrower is located

in this state.

     (3) For purposes of subsection (2), a borrower is considered

located in this state if the borrower's billing address is in this

state.

     (4) For purposes of subsection (2), "mortgage company" means a

person who has greater than 70% of its revenues, in the ordinary

course of business, from the origination, sale, or servicing of

residential mortgage loans.