SB-0807, As Passed Senate, November 30, 2011
November 9, 2011, Introduced by Senator HILDENBRAND and referred to the Committee on Finance.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending section 661 (MCL 206.661), as amended by 2011 PA 191.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 661. (1) Except as otherwise provided in this part, the
tax base established under this part shall be apportioned in
accordance with this chapter.
(2) The tax base of a taxpayer whose business activities are
confined solely to this state shall be allocated to this state. The
tax base of a taxpayer whose business activities are subject to tax
both within and outside of this state shall be apportioned to this
state by multiplying the tax base by the sales factor calculated
under section 663. For a taxpayer that has a direct, or indirect
through 1 or more other flow-through entities, ownership interest
or beneficial interest in a flow-through entity, the taxpayer's
business income that is directly attributable to the business
activity of the flow-through entity shall be apportioned to this
state using an apportionment factor determined under section 663
based on the business activity of the flow-through entity unless
the flow-through entity is unitary with the taxpayer for
apportionment purposes as provided under section 663.
(3) A taxpayer is subject to tax in another state in either of
the following circumstances:
(a) The taxpayer 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.
(b) That state has jurisdiction to subject the taxpayer to 1
or more of the taxes listed in subdivision (a) regardless of
whether that state does or does not subject the taxpayer to that
tax.
Enacting section 1. This amendatory act takes effect January
1, 2012.