SB-0671, As Passed Senate, September 24, 2009
June 25, 2009, Introduced by Senators CASSIS, BISHOP and PAPPAGEORGE and referred to the Committee on Finance.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending section 267 (MCL 208.1267).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 267. (1) Except as otherwise provided under this chapter,
the tax base of a financial institution whose business activities
are confined solely to this state shall be allocated to this state.
The
Except as otherwise provided
under subsection (5), the tax base
of a financial institution whose business activities are subject to
tax both within and outside this state shall be apportioned to this
state by multiplying the tax base by the gross business factor.
(2) A financial institution whose business activities are
subject to tax both within and outside of this state is subject to
tax in another state in either of the following circumstances:
(a) The financial institution is subject to a business
privilege tax, a net income tax, a franchise tax measured by net
income, a franchise tax for the privilege of doing business, or a
corporate stock tax or a tax of the type imposed under this act in
that state.
(b) That state has jurisdiction to subject the financial
institution to 1 or more of the taxes listed in subdivision (a)
regardless of whether that state does or does not subject the
financial institution to that tax.
(3) Except as otherwise provided in subsection (4), the gross
business factor is a fraction, the numerator of which is the total
gross business of the financial institution in this state during
the tax year and the denominator of which is the total gross
business of the financial institution everywhere during the tax
year.
(4) Except as otherwise provided under this subsection, for a
financial institution that is included in a unitary business group,
gross business includes gross business in this state of every
financial institution included in the unitary business group
without regard to whether the financial institution has nexus in
this state. Gross business between financial institutions included
in a unitary business group must be eliminated in calculating the
gross business factor.
(5) Notwithstanding subsection (1), a taxpayer that
restructures as a financial institution on or after January 1, 2008
and that prior to that restructuring qualified to apportion its tax
base based on its sales factor calculated under section 307
may elect to continue to have its business activities that are
subject to tax both within and outside this state apportioned to
this state by multiplying its tax base by its sales factor
calculated in accordance with section 307.