Bill Text: MI HB4953 | 2011-2012 | 96th Legislature | Chaptered
Bill Title: Income tax; income; definition carve-out of business income for electric cooperatives; eliminate. Amends sec. 603 of 1967 PA 281 (MCL 206.603).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2011-10-18 - Assigned Pa 173'11 With Immediate Effect [HB4953 Detail]
Download: Michigan-2011-HB4953-Chaptered.html
Act No. 173
Public Acts of 2011
Approved by the Governor
October 11, 2011
Filed with the Secretary of State
October 13, 2011
EFFECTIVE DATE: January 1, 2012
STATE OF MICHIGAN
96TH LEGISLATURE
REGULAR SESSION OF 2011
Introduced by Rep. Foster
ENROLLED HOUSE BILL No. 4953
AN ACT to amend 1967 PA 281, entitled “An act to meet deficiencies in state funds by providing for the imposition, levy, computation, collection, assessment, and enforcement by lien and otherwise of taxes on or measured by net income; to prescribe the manner and time of making reports and paying the taxes, and the functions of public officers and others as to the taxes; to permit the inspection of the records of taxpayers; to provide for interest and penalties on unpaid taxes; to provide exemptions, credits and refunds of the taxes; to prescribe penalties for the violation of this act; to provide an appropriation; and to repeal certain acts and parts of acts,” 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 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.
This act is ordered to take immediate effect.
Clerk of the House of Representatives
Secretary of the Senate
Approved
Governor
