Bill Text: MI SB0665 | 2011-2012 | 96th Legislature | Introduced

---

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: (Introduced - Dead) 2011-11-09 - Referred To Committee On Finance [SB0665 Detail]

Download: Michigan-2011-SB0665-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 665

 

 

September 15, 2011, Introduced by Senator PAPPAGEORGE and referred to the Committee on Finance.

 

 

 

     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.