Bill Text: MI HB5729 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Income tax; rate; rate reduction; provide for. Amends sec. 51 of 1967 PA 281 (MCL 206.51).
Spectrum: Partisan Bill (Republican 57-1)
Status: (Introduced - Dead) 2012-07-18 - Referred To Committee On Finance [HB5729 Detail]
Download: Michigan-2011-HB5729-Engrossed.html
HB-5729, As Passed House, June 14, 2012
SUBSTITUTE FOR
HOUSE BILL NO. 5729
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending section 51 (MCL 206.51), as amended by 2011 PA 38.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 51. (1) For receiving, earning, or otherwise acquiring
income from any source whatsoever, there is levied and imposed
under this part upon the taxable income of every person other than
a corporation a tax at the following rates in the following
circumstances:
(a) Before May 1, 1994, 4.6%.
(b) After April 30, 1994 and before January 1, 2000, 4.4%.
(c) For tax years that begin on and after January 1, 2000 and
before January 1, 2002, 4.2%.
(d) For tax years that begin on and after January 1, 2002 and
before January 1, 2003, 4.1%.
(e) On and after January 1, 2003 and before July 1, 2004,
4.0%.
(f) On and after July 1, 2004 and before October 1, 2007,
3.9%.
(g) On and after October 1, 2007 and before January 1, 2013,
4.35%.
(h)
Beginning on On and after January 1, 2013, 4.25%.and
before January 1, 2014, 4.2%.
(i) On and after January 1, 2014 and before January 1, 2015,
4.15%.
(j) On and after January 1, 2015, and before January 1, 2016,
4.1%.
(k) On and after January 1, 2016 and before January 1, 2017,
4.0%.
(l) On and after January 1, 2017 and before January 1, 2018,
3.95%.
(m) On and after January 1, 2018, 3.9%.
(2) The following percentages of the net revenues collected
under this section shall be deposited in the state school aid fund
created in section 11 of article IX of the state constitution of
1963:
(a) Beginning October 1, 1994 and before October 1, 1996,
14.4% of the gross collections before refunds from the tax levied
under this section.
(b) After September 30, 1996 and before January 1, 2000, 23.0%
of the gross collections before refunds from the tax levied under
this section.
(c) Beginning January 1, 2000, that percentage of the gross
collections before refunds from the tax levied under this section
that is equal to 1.012% divided by the income tax rate levied under
this section.
(3) The department shall annualize rates provided in
subsection (1) as necessary for tax years that end after April 30,
1994. The applicable annualized rate shall be imposed upon the
taxable income of every person other than a corporation for those
tax years.
(4) The taxable income of a nonresident shall be computed in
the same manner that the taxable income of a resident is computed,
subject to the allocation and apportionment provisions of this
part.
(5) A resident beneficiary of a trust whose taxable income
includes all or part of an accumulation distribution by a trust, as
defined in section 665 of the internal revenue code, shall be
allowed a credit against the tax otherwise due under this part. The
credit shall be all or a proportionate part of any tax paid by the
trust under this part for any preceding taxable year that would not
have been payable if the trust had in fact made distribution to its
beneficiaries at the times and in the amounts specified in section
666 of the internal revenue code. The credit shall not reduce the
tax otherwise due from the beneficiary to an amount less than would
have been due if the accumulation distribution were excluded from
taxable income.
(6) The taxable income of a resident who is required to
include income from a trust in his or her federal income tax return
under the provisions of 26 USC 671 to 679, shall include items of
income and deductions from the trust in taxable income to the
extent required by this part with respect to property owned
outright.
(7) It is the intention of this section that the income
subject to tax of every person other than corporations shall be
computed in like manner and be the same as provided in the internal
revenue code subject to adjustments specifically provided for in
this part.
(8) As used in this section:
(a) "Person other than a corporation" means a resident or
nonresident individual or any of the following:
(i) A partner in a partnership as defined in the internal
revenue code.
(ii) A beneficiary of an estate or a trust as defined in the
internal revenue code.
(iii) An estate or trust as defined in the internal revenue
code.
(b) "Taxable income" means taxable income as defined in this
part subject to the applicable source and attribution rules
contained in this part.
