SB-0091, As Passed Senate, December 8, 2009

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 91

     A bill to amend 2007 PA 36, entitled

"Michigan business tax act,"

by amending section 503 (MCL 208.1503).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 503. If a taxpayer's tax year to which this act applies

ends before December 31, 2008 or if a taxpayer's first tax year is

less than 12 months then a taxpayer subject to this act may elect

to compute the tax imposed by this act for the portion of that tax

year to which this act applies or that first tax year in accordance

with 1 of the following methods:

     (a) The tax may be computed as if this act were effective on

the first day of the taxpayer's annual accounting period and the

amount computed shall be multiplied by a fraction, the numerator of

which is the number of months in the taxpayer's first tax year and

the denominator of which is 12 the number of months in the

taxpayer's annual accounting period.

     (b) The tax may be computed by determining the business income

tax base and modified gross receipts tax base in the first tax year

in accordance with an accounting method satisfactory to the

department that reflects the actual business income tax base and

modified gross receipts tax base attributable to the period.

     Enacting section 1. This amendatory act is effective for tax

years ending after December 31, 2008.