Act No. 185

Public Acts of 2009

Approved by the Governor

December 17, 2009

Filed with the Secretary of State

December 17, 2009

EFFECTIVE DATE: January 1, 2009

STATE OF MICHIGAN

95TH LEGISLATURE

REGULAR SESSION OF 2009

Introduced by Senator Cassis

ENROLLED SENATE BILL No. 91

AN ACT to amend 2007 PA 36, entitled “An act to meet deficiencies in state funds by providing for the imposition, levy, computation, collection, assessment, reporting, payment, and enforcement of taxes on certain commercial, business, and financial activities; to prescribe the powers and duties of public officers and state departments; to provide for the inspection of certain taxpayer records; to provide for interest and penalties; to provide exemptions, credits, and refunds; to provide for the disposition of funds; to provide for the interrelation of this act with other acts; and to make appropriations,” 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 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.

This act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of Representatives

Approved

Governor