January 24, 2008, Introduced by Senators SANBORN and WHITMER and referred to the Committee on Banking and Financial Institutions.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending section 235 (MCL 208.1235).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
235. (1) Each Except as
otherwise provided under
subsection (4), each insurance company shall pay a tax determined
under this chapter.
(2) The tax imposed by this chapter on each insurance company
shall be a tax equal to 1.25% of gross direct premiums written on
property or risk located or residing in this state. Direct premiums
do not include any of the following:
(a) Premiums on policies not taken.
(b) Returned premiums on canceled policies.
(c) Receipts from the sale of annuities.
(d) Receipts on reinsurance premiums if the tax has been paid
on the original premiums.
(e) The first $190,000,000.00 of disability insurance premiums
written in this state, other than credit insurance and disability
income insurance premiums, of each insurance company subject to tax
under this chapter. This exemption shall be reduced by $2.00 for
each $1.00 by which the insurance company's gross direct premiums
from insurance carrier services in this state and outside this
state exceed $280,000,000.00.
(3) The tax calculated under this chapter is in lieu of all
other privilege or franchise fees or taxes imposed by this act or
any other law of this state, except taxes on real and personal
property, taxes collected under the general sales tax act, 1933 PA
167, MCL 205.1 to 205.78, and taxes collected under the use tax
act, 1937 PA 94, MCL 205.91 to 205.111, and except as otherwise
provided in the insurance code of 1956, 1956 PA 218, MCL 500.100 to
500.8302.
(4) The tax imposed and levied under this act does not apply
to an insurance company authorized under chapter 46 or 47 of the
insurance code of 1956, 1956 PA 218, MCL 500.4601 to 500.4673, and
MCL 500.4701 to 500.4747.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 1061
of the 94th Legislature is enacted into law.