HB-4956, As Passed Senate, September 28, 2011
September 13, 2011, Introduced by Rep. Walsh and referred to the Committee on Tax Policy.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending section 609 (MCL 206.609), as added by 2011 PA 38.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
609. (1) "Person" means an individual, firm, bank,
financial
institution, insurance company, limited partnership,
limited
liability partnership, copartnership, partnership, joint
venture,
association, corporation, subchapter
S corporation,
limited
liability company, flow-through
entity, receiver, estate,
trust, or any other group or combination of groups acting as a
unit.
(2) "Professional employer organization" means an
organization, other than an organization whose business activities
are included in industry group 736 under the standard industrial
classification code as compiled by the United States department of
labor, that provides the management and administration of the human
resources of another entity by contractually assuming substantial
employer rights and responsibilities through a professional
employer agreement that establishes an employer relationship with
the leased officers or employees assigned to the other entity by
doing all of the following:
(a) Maintaining a right of direction and control of employees'
work, although this responsibility may be shared with the other
entity.
(b) Paying wages and employment taxes of the employees out of
its own accounts.
(c) Reporting, collecting, and depositing state and federal
employment taxes for the employees.
(d) Retaining a right to hire and fire employees.
(3) "Revenue mile" means the transportation for a
consideration of 1 net ton in weight or 1 passenger the distance of
1 mile.
(4) "Sale" or "sales" means, except as provided in subdivision
(e), the amounts received by the taxpayer as consideration from the
following:
(a) The transfer of title to, or possession of, property that
is stock in trade or other property of a kind that would properly
be included in the inventory of the taxpayer if on hand at the
close of the tax period or property held by the taxpayer primarily
for sale to customers in the ordinary course of the taxpayer's
trade or business. For intangible property, the amounts received
shall be limited to any gain received from the disposition of that
property.
(b) The performance of services that constitute business
activities.
(c) The rental, lease, licensing, or use of tangible or
intangible property, including interest that constitutes business
activity.
(d) Any combination of business activities described in
subdivisions (a), (b), and (c).
(e) For taxpayers not engaged in any other business
activities, sales include interest, dividends, and other income
from investment assets and activities and from trading assets and
activities.
(5) "Shareholder" means a person who owns outstanding stock in
a corporation or is a member of a business entity that files as a
corporation for federal income tax purposes. An individual is
considered as the owner of the stock, or the equity interest in a
business entity that files as a corporation for federal income tax
purposes, owned, directly or indirectly, by or for family members
as defined by section 318(a)(1) of the internal revenue code.
(6) "State" means any state of the United States, the District
of Columbia, the Commonwealth of Puerto Rico, any territory or
possession of the United States, and any foreign country, or a
political subdivision of any of the foregoing.
Enacting section 1. This amendatory act takes effect January
1, 2012.