Bill Text: MI HB4940 | 2011-2012 | 96th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Income tax; administration; treatment of flow-through entities and disregarded entities; clarify. Amends sec. 701 of 1967 PA 281 (MCL 206.701).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2011-12-28 - Assigned Pa 311'11 With Immediate Effect [HB4940 Detail]

Download: Michigan-2011-HB4940-Engrossed.html

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HB-4940, As Passed House, December 8, 2011

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 4940

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1967 PA 281, entitled

 

"Income tax act of 1967,"

 

by amending section 701 (MCL 206.701), as amended by 2011 PA 194.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 701. As used in this part:

 

     (a) "Casino" means that term as defined in section 110.

 

     (b) "Casino licensee" means a person licensed to operate a

 

casino under the Michigan gaming control and revenue act, 1996 IL

 

1, MCL 432.201 to 432.226.

 

     (c) "Eligible production company" means that term as defined

 

under section 455 of the Michigan business tax act, 2007 PA 36, MCL

 

208.1455.

 

     (d) "Flow-through entity" means an entity that for the

 

applicable tax year is treated as an S corporation under section

 

1362(a) of the internal revenue code, a general partnership, a

 

limited partnership, a limited liability partnership, or a limited

 

liability company, that for the applicable tax year is not taxed as

 

a corporation for federal income tax purposes. Flow-through entity

 

does not include any entity disregarded under section 699.

 

     (e) "Member" means a shareholder of an S corporation, a

 

partner in a general partnership, a limited partnership, or a

 

limited liability partnership, a member of a limited liability

 

company, or a beneficiary of a trust, that is a flow-through

 

entity.

 

     (f) "Nonresident" means an individual who is not a resident of

 

or domiciled in this state, a business entity that does not have

 

its commercial domicile in this state, or a trust not organized in

 

this state.

 

     (g) "Partnership" means a taxpayer that is required to or has

 

elected to file as a partnership for federal income tax purposes.

 

     (h) "Publicly traded partnership" means that term as defined

 

under section 7704 of the internal revenue code.

 

     (i) "Race meeting licensee" and "track licensee" mean a person

 

to whom a race meeting license or track license is issued pursuant

 

to section 8 of the horse racing law of 1995, 1995 PA 279, MCL

 

431.308.

 

     (j) "S corporation" means a corporation electing taxation

 

under subchapter S of chapter 1 of subtitle A of the internal

 

revenue code, sections 1361 to 1379 of the internal revenue code.

 

     Enacting section 1. This amendatory act takes effect January

 

1, 2012.