September 13, 2011, Introduced by Rep. Foster and referred to the Committee on Tax Policy.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending section 603 (MCL 206.603), as added by 2011 PA 38.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 603. (1) "Business activity" means a transfer of legal or
equitable title to or rental of property, whether real, personal,
or mixed, tangible or intangible, or the performance of services,
or a combination thereof, made or engaged in, or caused to be made
or engaged in, whether in intrastate, interstate, or foreign
commerce, with the object of gain, benefit, or advantage, whether
direct or indirect, to the taxpayer or to others, but does not
include the services rendered by an employee to his or her employer
or services as a director of a corporation. Although an activity of
a taxpayer may be incidental to another or to others of his or her
business activities, each activity shall be considered to be
business engaged in within the meaning of this part.
(2)
"Business income" means federal taxable income. For a
taxpayer
that is a mutual or cooperative electric company exempt
under
section 501(c)(12) of the internal revenue code, business
income
equals the organization's excess or deficiency of revenues
over
expenses as reported to the federal government by those
organizations
exempt from the federal income tax under the internal
revenue
code, less capital credits paid to members of that
organization,
less income attributed to equity in another
organization's
net income, and less income resulting from a charge
approved
by a state or federal regulatory agency that is restricted
for
a specified purpose and refundable if it is not used for the
specified
purpose. For a tax-exempt taxpayer,
business income means
only that part of federal taxable income derived from unrelated
business activity.
Enacting section 1. This amendatory act takes effect January
1, 2012.