SB-0091, As Passed Senate, February 5, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 91

 

 

January 27, 2009, Introduced by Senator CASSIS and referred to the Committee on Finance.

 

 

 

     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 for the 2008 tax year 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 annual accounting

 

period that fall within the 2008 calendar year or the number of

 

months in the taxpayer's first tax year that fall within the 2008

 

calendar 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 retroactive and

 

effective for the 2008 tax year.