March 20, 2008, Introduced by Senators GILBERT, JANSEN, CASSIS and McMANUS and referred to the Committee on Finance.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending section 281 (MCL 208.1281), as added by 2007 PA 145.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 281. (1) In addition to the taxes imposed and levied
under
this act and subject to subsections (2), (3), and (4), and
(5), to meet deficiencies in state funds an annual surcharge is
imposed and levied on each taxpayer equal to the following
percentage of the taxpayer's tax liability under this act after
allocation or apportionment to this state under this act but before
calculation of the various credits available under this act:
(a) For each taxpayer other than a person subject to the tax
imposed and levied under chapter 2B, 21.99%.
(b) For a person subject to the tax imposed and levied under
chapter 2B:
(i) For tax years ending after December 31, 2007 and before
January 1, 2009, 27.7%.
(ii) For tax years ending after December 31, 2008, 23.4%.
(2) If the Michigan personal income growth exceeds 0% in any 1
of the 3 calendar years immediately preceding the 2017 calendar
year, then the surcharge under subsection (1) shall not be levied
and imposed on or after January 1, 2017. For purposes of this
subsection, "Michigan personal income" means personal income for
this state as defined by the bureau of economic analysis of the
United States department of commerce or its successor.
(3) If the amount of the total net cash payments collected
from the tax imposed under this act, excluding any revenue
collected pursuant to chapter 2A, exceeds the estimated amount of
revenue expected by $100,000,000.00 or more for 2 consecutive
years, then the surcharge rates under subsection (1) shall be
reduced by a rate that would reduce the amount of net cash payments
expected to be collected in the immediately succeeding year by an
amount equal to the average of the excess revenue collected in the
2 immediately preceding years. The rate reductions shall be
effective January 1 immediately following the end of the state
fiscal years that the amount exceeded the estimates by
$100,000,000.00 or more, and the adjustment shall remain in effect
for each subsequent year unless further adjustment is necessary in
accordance with this subsection or the surcharge is eliminated
under subsection (2), whichever occurs first.
(4) (3)
The amount of the surcharge imposed
and levied on any
taxpayer under subsection (1)(a) shall not exceed $6,000,000.00 for
any single tax year.
(5) (4)
The surcharge imposed and levied
under this section
does not apply to either of the following:
(a) A person subject to the tax imposed and levied under
chapter 2A.
(b) A person subject to the tax imposed and levied under
chapter 2B that is authorized to exercise only trust powers.
(6) (5)
The surcharge imposed and levied
under this section
shall constitute a part of the tax imposed under this act and shall
be administered, collected, and enforced as provided under this
act.
Enacting section 1. This amendatory act is retroactive and
effective for taxes levied on and after October 1, 2008 and applies
to all business activity occurring after December 31, 2007.