HB-4556,As Passed House,May 1, 2003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4556

 

April 10, 2003, Introduced by Rep. Bieda and referred to the Committee on Tax Policy.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1967 PA 281, entitled                                             

                                                                                

    "Income tax act of 1967,"                                                   

                                                                                

    by amending section 110 (MCL 206.110), as amended by 1996 PA                

                                                                                

    484.                                                                        

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 110.  (1) For a resident individual, estate, or trust,                 

                                                                                

2   all taxable income from any source whatsoever, except that                  

                                                                                

3   attributable to another state under sections 111 to 115 and                 

                                                                                

4   subject to section 255, is allocated to this state.                         

                                                                                

5       (2) For a nonresident individual, estate, or trust, all                     

                                                                                

6   taxable income is allocated to this state to the extent it is               

                                                                                

7   earned, received, or acquired in 1 or more of the following                 

                                                                                

8   ways:                                                                       

                                                                                

9       (a) For the rendition of personal services performed in this                

                                                                                

10  state.                                                                      

                                                                                


                                                                                

1       (b) As a distributive share of the net profits of a business,               

                                                                                

2   profession, enterprise, undertaking, or other activity as the               

                                                                                

3   result of work done, services rendered, or other business                   

                                                                                

4   activities conducted in this state, except as allocated to                  

                                                                                

5   another state pursuant to sections 111 to 114 and subject to                

                                                                                

6   section 256.                                                                

                                                                                

7       (c) For tax years beginning after 1996, as a prize won by the               

                                                                                

8   taxpayer under the McCauley-Traxler-Law-Bowman-McNeely lottery              

                                                                                

9   act,  Act No. 239 of the Public Acts of 1972, being                         

                                                                                

10  sections 432.1 to 432.47 of the Michigan Compiled Laws  1972 PA             

                                                                                

11  239, MCL 432.1 to 432.47.                                                   

                                                                                

12      (d) As winnings that are proceeds of a wagering transaction                 

                                                                                

13  paid on or after October 1, 2003 by a casino or as a payoff price           

                                                                                

14  on a winning ticket that is the result of pari-mutuel wagering at           

                                                                                

15  a licensed race meeting if the casino or licensed race meeting is           

                                                                                

16  located in this state.  As used in this section:                            

                                                                                

17                                                                               (i) "Casino" means a casino regulated by this state under the                       

                                                                                

18  Michigan gaming control and revenue act, the Initiated Law of               

                                                                                

19  1996, MCL 432.201 to 432.226, or a building on Native American              

                                                                                

20  land or land held in trust by the United States for a federally             

                                                                                

21  recognized Indian tribe on which gaming is conducted under the              

                                                                                

22  Indian gaming regulatory act, Public Law 100-497, 102                       

                                                                                

23  Stat. 2467.                                                                 

                                                                                

24      (ii) "Pari-mutuel wagering" and "licensed race meeting" mean                 

                                                                                

25  those terms as used in the horse racing law of 1995, 1995 PA 279,           

                                                                                

26  MCL 431.301 to 431.336.                                                     

                                                                                

27      (3) The respective shares of a nonresident estate or trust                  


                                                                                

1   and its beneficiaries, including, solely for purposes of                    

                                                                                

2   allocation, resident and nonresident beneficiaries, in the income           

                                                                                

3   attributable to  Michigan  this state shall be in proportion to             

                                                                                

4   the respective shares of distributable net income of the                    

                                                                                

5   beneficiaries under the internal revenue code.  If the estate or            

                                                                                

6   trust has no distributable net income for the tax year, the share           

                                                                                

7   of each beneficiary in the income attributable to  Michigan  this           

                                                                                

8   state shall be in proportion to his or her share of the estate or           

                                                                                

9   trust income for that year, under local law or the terms of the             

                                                                                

10  instrument, that is required to be distributed currently and                

                                                                                

11  other amounts of the income distributed in the year.  Any balance           

                                                                                

12  of the income attributable to  Michigan  this state shall be                

                                                                                

13  allocated to the estate or trust.                                           

                                                                                

14      (4) A nonresident estate or trust is allowed the credit                     

                                                                                

15  provided in section 256, except that the limitation shall be                

                                                                                

16  computed by reference to the taxable income of the estate or                

                                                                                

17  trust.                                                                      

                                                                                

18      (5) Rents and royalties from real or tangible personal                      

                                                                                

19  property, capital gains, interest, dividends, or patent or                  

                                                                                

20  copyright royalties, to the extent that they constitute a                   

                                                                                

21  nonbusiness income, shall be allocated as provided in sections              

                                                                                

22  111 to 114.