October 22, 2009, Introduced by Rep. Lund and referred to the Committee on Regulatory Reform.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
(MCL 208.1101 to 208.1601) by adding section 465.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 465. (1) For tax years that begin on and after January 1,
2009, a taxpayer that owns or operates a food service establishment
and prohibits smoking within that food service establishment may
claim a credit against the tax imposed by this act for a period of
5 tax years equal to the product of the taxpayer's gross receipts
for the tax year during which the taxpayer first imposed the
smoking ban multiplied by a fraction the numerator of which is the
difference between taxpayer's gross receipts attributable to the
same full month in the immediately preceding calendar year before
the taxpayer's food service establishment prohibited smoking and
the gross receipts attributable to the first full month in which
the taxpayer's food service establishment was a smoke-free
establishment and the denominator of which is taxpayer's gross
receipts attributable to the same full month in the immediately
preceding calendar year before the taxpayer's food service
establishment prohibited smoking.
(2) If the credit allowed under this section for the tax year
and any unused carryforward of the credit allowed by this section
exceed the taxpayer's tax liability for the tax year, that portion
that exceeds the tax liability for the tax year shall not be
refunded but may be carried forward to offset tax liability in
subsequent tax years for 10 years or until used up, whichever
occurs first.
(3) A taxpayer that claims a credit under this section and
subsequently lifts the smoking ban within its food service
establishment may, as determined by the department, have its credit
reduced or terminated or have a percentage of the credit amount
previously claimed under this section added back to the tax
liability of the taxpayer in the year that the taxpayer stops
imposing the smoking ban.
(4) As used in this section, "food service establishment"
means that term as defined under section 1107 of the food law of
2000, 2000 PA 92, MCL 289.1107.