SB-1170, As Passed Senate, November 29, 2018
SUBSTITUTE FOR
SENATE BILL NO. 1170
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
(MCL 206.1 to 206.713) by adding sections 254 and 675 and part 4.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 254. (1) Except as otherwise provided under this section,
for tax years beginning on and after January 1, 2018, a taxpayer
who is either a member of a flow-through entity that elects to file
a return and pay the tax imposed under part 4 or a direct or
indirect member of another flow-through entity that elects to file
a return and pay the tax imposed under part 4 may claim a credit
against the tax imposed under this part in an amount equal to the
member's allocated share of the tax as reported to the member by
the flow-through entity pursuant to section 789(2) for the tax year
ending on or within the taxpayer's same tax year.
(2) For a taxpayer that is an estate or trust, the amount of
the credit allowed under this section shall be determined by
multiplying the amount calculated under subsection (1) by a
percentage equal to a fraction, the numerator of which is the flow-
through entity business income tax base that is retained by the
estate or trust and the denominator of which is the total flow-
through entity business income tax base that is included in
distributable net income.
(3) For a taxpayer who is a beneficiary of an estate or trust
that is either a member of a flow-through entity that elects to
file a return and pay the tax imposed under part 4 or a direct or
indirect member of another flow-through entity that elects to file
a return and pay the tax imposed under part 4, the amount of the
credit allowed under this section is equal to the allocable share
of the tax imposed under part 4 for the year ending on or within
the taxpayer's same tax year as reported to the beneficiary in
accordance with section 789(3).
(4) If the credit allowed under this section exceeds the tax
liability of the taxpayer for the tax year, that portion of the
credit that exceeds the tax liability shall be refunded.
Sec. 675. (1) Except as otherwise provided under this section,
for tax years beginning on and after January 1, 2018, a taxpayer
who is either a member of a flow-through entity that elects to file
a return and pay the tax imposed under part 4 or a direct or
indirect member of another flow-through entity that elects to file
a return and pay the tax imposed under part 4 may claim a credit
against the tax imposed under this part in an amount equal to the
member's allocated share of the tax as reported to the member by
the flow-through entity pursuant to section 789(2) for the tax year
ending on or within the taxpayer's same tax year.
(2) If the credit allowed under this section exceeds the tax
liability of the taxpayer for the tax year, that portion of the
credit that exceeds the tax liability shall be refunded.
PART 4
CHAPTER 18
Sec. 751. A term used in this part and not defined differently
shall have the same meaning as when used in comparable context in
the laws of the United States relating to federal income taxes in
effect for the tax year unless a different meaning is clearly
required. A reference in this part to the internal revenue code
includes other provisions of the laws of the United States relating
to federal income taxes.
Sec. 753. (1) "Affiliated group" means that term as defined in
section 1504 of the internal revenue code and includes all United
States persons that are flow-through entities that are commonly
controlled as provided in 26 CFR 1.414(c)-1.
(2) "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.
(3) "Business income" means federal taxable income and
includes payments and items of income and expense that are
attributable to business activity of the flow-through entity and
separately reported to its members.
(4) "Corporation" means a person that is required or has
elected to file as a C corporation as defined under section
1361(a)(2) and section 7701(a)(3) of the internal revenue code.
Corporation does not include an insurance company or a financial
institution.
(5) "Department" means the department of treasury.
(6) "Employee" means an employee as defined in section 3401(c)
of the internal revenue code. A person from whom an employer is
required to withhold for federal income tax purposes is prima facie
considered an employee.
(7) "Employer" means an employer as defined in section 3401(d)
of the internal revenue code. A person required to withhold for
federal income tax purposes is prima facie considered an employer.
(8) "Federal taxable income" means taxable income as defined
in section 63 of the internal revenue code without the deductions
described under section 703(a)(2) of the internal revenue code. For
the purposes of this part in computing federal taxable income, S
corporations shall be treated as a corporation under section
1361(a)(2) of the internal revenue code and partnerships shall be
treated as an association taxable as a corporation pursuant to an
election under 26 CFR 301.7701-3(a).
(9) "Financial institution" means that term as defined in
section 657.
(10) "Flow-through entity" means an entity that for the
applicable tax year is treated as an S corporation or a partnership
under the internal revenue code for federal income tax purposes.
Flow-through entity does not include a publicly traded partnership
or any entity disregarded under section 799.
(11) "Gross receipts" means that term as defined under section
607.
(12) "Insurance company" means that term as defined in section
607.
(13) "Internal revenue code" means the United States internal
revenue code of 1986 in effect on January 1, 2018 or, at the option
of the taxpayer, in effect for the tax year.
(14) "Member", when used in reference to a flow-through
entity, means a shareholder of an S corporation or a partner or
member in a partnership.
(15) "Partnership" means an entity that is required to or has
elected to file as a partnership for federal income tax purposes.
Partnership includes a limited liability company that is treated as
a partnership for federal income tax purposes.
(16) "Person" means an individual, bank, financial
institution, insurance company, association, corporation, flow-
through entity, receiver, estate, trust, or any other group or
combination of groups acting as a unit.
(17) "Publicly traded partnership" means that term as defined
under section 7704 of the internal revenue code.
(18) "Resident" means a flow-through entity domiciled in the
state or incorporated, formed, or organized under the laws of this
state. "Domicile" means the principal place from which the trade or
business of the flow-through entity is directed or managed.
(19) "S corporation" means a corporation or limited liability
company electing taxation under sections 1361 to 1379 of the
internal revenue code.
(20) "Sale" or "sales" means that term as defined in section
609.
(21) "State" means any state of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, any
territory or possession of the United States, and any foreign
country, or a political subdivision of any of the foregoing.
(22) "Tax" means the tax imposed under this part, including
interest and penalties under this part, unless the term is given a
more limited meaning in the context of this part or a provision of
this part.
(23) "Tax year" means the calendar year, or the fiscal year
ending during the calendar year, upon the basis of which the tax
base of a taxpayer is computed under this part. If a return is made
for a fractional part of a year, tax year means the period for
which the return is made. Except for the first return required by
this part, a taxpayer's tax year is for the same period as is
covered by its federal income tax return. A taxpayer that has a 52-
or 53-week tax year beginning not more than 7 days before the end
of any month is considered to have a tax year beginning on the
first day of the subsequent month. A person included in a unitary
business group that joins or departs the unitary business group
other than at the end of that person's federal tax year shall have
a tax year beginning with its federal income tax period and ending
on the date of joining or departing the unitary business group, and
another tax year beginning on the date immediately after joining or
departing the unitary business group and ending with its federal
income tax period.
(24) "Taxpayer" means a flow-through entity that elects
pursuant to section 757 to be subject to the tax under this part.
(25) "Unitary business group" means a group of United States
persons that are flow-through entities, 1 of which owns or
controls, directly or indirectly, more than 50% of the ownership
interest with voting rights or ownership interests that confer
comparable rights to voting rights of the other members, and that
has business activities or operations which result in a flow of
value between or among members included in the unitary business
group or has business activities or operations that are integrated
with, are dependent upon, or contribute to each other. Unitary
business group includes an affiliated group that makes the election
to be treated, and to file, as a unitary business group under
section 791.
(26) "United States person" means that term as defined in
section 7701(a)(30) of the internal revenue code.
Sec. 755. (1) Except as otherwise provided in this part, a
taxpayer has substantial nexus in this state and is subject to the
tax imposed under this part if the taxpayer elects to pay the tax
pursuant to section 757 and if the taxpayer has a physical presence
in this state for a period of more than 1 day during the tax year,
actively solicits sales in this state and has gross receipts
sourced to this state, or is a member or has an ownership interest
or a beneficial interest in a flow-through entity, directly, or
indirectly through 1 or more other flow-through entities, that has
substantial nexus in this state.
(2) As used in this section:
(a) "Actively solicits" means either of the following:
(i) Speech, conduct, or activity that is purposefully directed
at or intended to reach persons within this state and that
explicitly or implicitly invites an order for a purchase or sale.
(ii) Speech, conduct, or activity that is purposefully
directed at or intended to reach persons within this state that
neither explicitly nor implicitly invites an order for a purchase
or sale, but is entirely ancillary to requests for an order for a
purchase or sale.
(b) "Physical presence" means any activity conducted by the
taxpayer or on behalf of the taxpayer by the taxpayer's employee,
agent, or independent contractor acting in a representative
capacity. Physical presence does not include the activities of
professionals providing services in a professional capacity or
other service providers if the activity is not significantly
associated with the taxpayer's ability to establish and maintain a
market in this state.
Sec. 757. For tax years beginning on and after January 1,
2018, a flow-through entity may, in a form and manner as prescribed
by the department, elect to file a return and pay the tax imposed
by this part in any tax year. An election for a tax year does not
obligate the flow-through entity to make the same election in
subsequent tax years. A separate election must be made for each tax
year in a timely manner as provided under section 785.
Sec. 759. (1) Beginning January 1, 2018 and each tax year
after 2018, there is levied and imposed a flow-through entity tax
on every taxpayer with business activity in this state unless
prohibited by 15 USC 381 to 384. Except as otherwise provided under
subsection (6), the flow-through entity tax is imposed on the
positive business income tax base, after allocation or
apportionment to this state, at the same rate levied and imposed
under section 51 for that same tax year. A negative business income
tax base of a flow-through entity, after allocation or
apportionment to this state, is includible in the business income
tax base of each member of the flow-through entity and is not
available as an offset to the allocated or apportioned business
income tax base of the flow-through entity in any other tax year
for which an election is made under section 757.
(2) The business income tax base means a taxpayer's business
income subject to the following adjustments, before allocation or
apportionment, and the adjustment in subsection (5) after
allocation or apportionment:
(a) Add interest income and dividends derived from obligations
or securities of states other than this state, in the same amount
that was excluded from federal taxable income, less the related
portion of expenses not deducted in computing federal taxable
income because of sections 265 and 291 of the internal revenue
code.
(b) Add all taxes on or measured by net income including the
tax imposed under this part to the extent that the taxes were
deducted in arriving at federal taxable income.
(c) To the extent included in federal taxable income, deduct
dividends and royalties received from persons other than United
States persons and foreign operating entities, including, but not
limited to, amounts determined under section 78 of the internal
revenue code or sections 951 to 965 of the internal revenue code.
(d) Except as otherwise provided under this subdivision, to
the extent deducted in arriving at federal taxable income, add any
royalty, interest, or other expense paid to a person related to the
taxpayer by ownership or control for the use of an intangible asset
if the person is not included in the taxpayer's unitary business
group. The addition of any royalty, interest, or other expense
described under this subdivision is not required to be added if the
taxpayer can demonstrate that the transaction has a nontax business
purpose, is conducted with arm's-length pricing and rates and terms
as applied in accordance with sections 482 and 1274(d) of the
internal revenue code, and 1 of the following is true:
(i) The transaction is a pass through of another transaction
between a third party and the related person with comparable rates
and terms.
(ii) An addition would result in double taxation. For purposes
of this subparagraph, double taxation exists if the transaction is
subject to tax in another jurisdiction.
(iii) An addition would be unreasonable as determined by the
state treasurer.
(iv) The related person recipient of the transaction is
organized under the laws of a foreign nation which has in force a
comprehensive income tax treaty with the United States.
(e) To the extent included in federal taxable income, deduct
interest income derived from United States obligations.
(f) Eliminate all of the following:
(i) Income from producing oil and gas to the extent included
in federal taxable income.
(ii) Expenses of producing oil and gas to the extent deducted
in arriving at federal taxable income.
(iii) Income derived from a mineral to the extent included in
federal taxable income.
(iv) Expenses related to the income deductible under
subparagraph (iii) to the extent deducted in arriving at federal
taxable income.
(3) For a taxpayer that has a direct, or indirect through 1 or
more other flow-through entities, ownership or beneficial interest
in a flow-through entity for which an election was made under
section 757 and which reported positive business income in a tax
year ending on or within the taxpayer's tax year, the adjustments
in subsection (2) shall not include the taxpayer's share of the
electing flow-through entities adjustments under subsection (2).
(4) For purposes of subsection (2), the business income of a
unitary business group is the sum of the business income of each
person included in the unitary business group less any items of
income and related deductions arising from transactions including
dividends between persons included in the unitary business group.
(5) For a taxpayer that has a direct, or indirect through 1 or
more other flow-through entities, ownership or beneficial interest
in a flow-through entity for which an election was made under
section 757, deduct the taxpayer's share of the electing flow-
through entity's positive business income as determined under
section 761(2).
(6) In computing the tax due under this part, the flow-through
entity may elect to pay the tax due only on the business income
allocable to those members who are individuals or trusts and
exclude the business income allocable to those members that are
corporations.
(7) As used in this section, "oil and gas" means oil and gas
that is subject to severance tax under 1929 PA 48, MCL 205.301 to
205.317.
Sec. 761. (1) Except as otherwise provided in this part, the
tax base established under this part shall be apportioned in
accordance with allocation and apportionment provisions in chapter
3.
(2) For a taxpayer that has a direct, or indirect through 1 or
more other flow-through entities, ownership interest or beneficial
interest in a flow-through entity, the taxpayer's business income
that is directly attributable to the business activity of the flow-
through entity shall be apportioned to this state using an
apportionment factor determined under chapter 3 based on the
business activity of the flow-through entity unless the flow-
through entity is included with a unitary business group filing a
combined return.
(3) A taxpayer is subject to tax in another state in either of
the following circumstances:
(a) The taxpayer is subject to, or would be subject to, if the
taxpayer was not a flow-through entity, a business privilege tax, a
net income tax, a franchise tax measured by net income, a franchise
tax for the privilege of doing business, or a corporate stock tax.
(b) That state has jurisdiction to subject the taxpayer to 1
or more of the taxes listed in subdivision (a) regardless of
whether, in fact, that state does or does not subject the taxpayer
to that tax.
Sec. 771. (1) Any taxpayer allocated income as a member of a
flow-through entity by the flow-through entity may claim a credit
against the tax imposed by this part in an amount equal to the
taxpayer's allocated share of the tax as reported by the other
flow-through
entity pursuant to section 789(2).
(2) A taxpayer is allowed a credit against the tax due under
this part for the amount of an income tax imposed on the taxpayer
for the tax year by another state of the United States, a political
subdivision of another state of the United States, the District of
Columbia, or a Canadian province, on income derived from sources
outside this state that is also subject to tax under this part or
the amount determined under this subsection, whichever is less. For
purposes of the Canadian provincial credit, the credit is allowed
for only that portion of the provincial tax not claimed as a credit
for federal income tax purposes. It is presumed that the Canadian
federal income tax is claimed first. The provincial tax claimed as
a carryover deduction as provided in the internal revenue code is
not allowed as a credit under this section. The credit under this
subsection shall not exceed an amount determined by dividing income
that is subject to taxation both in this state and in another
jurisdiction by taxable income and then multiplying that result by
the taxpayer's tax liability before any credits are deducted.
Sec. 781. (1) Except as otherwise provided under this section,
beginning with the 2019 tax year, a taxpayer that reasonably
expects liability for the tax year to exceed $800.00 shall file an
estimated return and pay an estimated tax for each quarter of the
taxpayer's tax year.
(2) For taxpayers on a calendar year basis, the quarterly
returns and estimated payments shall be made by April 15, July 15,
October 15, and January 15. Taxpayers not on a calendar year basis
shall file quarterly returns and make estimated payments on the
appropriate due date which in the taxpayer's fiscal year
corresponds to the calendar year.
(3) Except as otherwise provided under this subsection, the
estimated payment made with each quarterly return of each tax year
shall be for the estimated tax base that is applicable to the
taxpayer under this part for the quarter or 25% of the estimated
annual liability. The second, third, and fourth estimated payments
in each tax year shall include adjustments, if necessary, to
correct underpayments or overpayments from previous quarterly
payments in the tax year to a revised estimate of the annual tax
liability. For a taxpayer that calculates and pays estimated
payments for federal income tax purposes pursuant to section
6655(e) of the internal revenue code, that taxpayer may use the
same methodology as used to calculate the annualized income
installment or the adjusted seasonal installment, whichever is used
as the basis for the federal estimated payment, to calculate the
estimated payments required each quarter under this section. The
interest and penalty provided by this part shall not be assessed if
any of the following occur:
(a) If the sum of the estimated payments equals at least 85%
of the liability and the amount of each estimated payment
reasonably approximates the tax liability incurred during the
quarter for which the estimated payment was made.
(b) For the 2019 tax year and each subsequent tax year, if the
preceding year's tax liability under this part was $20,000.00 or
less and if the taxpayer submitted 4 equal installments the sum of
which equals the immediately preceding tax year's tax liability.
(4) Each estimated return shall be made on a form prescribed
by the department and shall include an estimate of the annual tax
liability and other information required by the state treasurer.
The form prescribed under this subsection may be combined with any
other tax reporting form prescribed by the department.
(5) With respect to a taxpayer filing an estimated tax return
for the taxpayer's first tax year of less than 12 months, the
amounts paid with each return shall be proportional to the number
of payments made in the first tax year. A taxpayer with a tax year
of less than 4 months is not required to file an estimated tax
return or remit estimated payments.
(6) Payments made under this section shall be a credit against
the payment required with the annual tax return required in section
785.
(7) If the department considers it necessary to insure payment
of the tax or to provide a more efficient administration of the
tax, the department may require filing of the returns and payment
of the tax for other than quarterly or annual periods.
Sec. 785. (1) For the first tax year beginning on or after
January 1, 2018, a flow-through entity that elects to pay the tax
imposed by this part shall, on or before the last day of the third
month after the end of the tax year, either file an annual or final
return as required under subsection (2) or file an irrevocable
election to pay the tax imposed by this part for that tax year in
the form and manner prescribed by the department. For any
subsequent tax year, a flow-through entity that elects to pay the
tax imposed by this part shall, on or before the fifteenth day of
the fourth month of that tax year, file an irrevocable election, in
the form and manner prescribed by the department, to pay the tax
imposed by this part for that tax year.
(2) An annual or final return for the tax imposed under this
part shall be filed with the department in the form and content
prescribed by the department by the last day of the third month
after the end of the taxpayer's tax year. Any final liability shall
be remitted by the annual due date of the taxpayer's annual or
final return, excluding any extension of time to file the return as
provided under subsections (3) and (4). A taxpayer whose tax
liability under this part is less than or equal to $100.00 does not
need to file a return or pay the tax imposed under this part. The
department may provide rules for filing an information only return
for tax years for which an election under section 757 is not made
after a tax year for which a return was filed under this part.
(3) The department, upon application of the taxpayer and for
good cause shown, may extend the date for filing the annual return.
Interest at the rate under section 23(2) of 1941 PA 122, MCL
205.23, shall be added to the amount of the tax unpaid for the
period of the extension. The state treasurer shall require with the
application payment of the estimated tax liability unpaid for the
tax period covered by the extension.
(4) If a taxpayer is granted an extension of time within which
to file the federal income tax return for any tax year, the filing
of a copy of the request for extension together with a tentative
return and payment of an estimated tax with the department by the
due date provided in subsection (2) shall automatically extend the
due date for the filing of an annual or final return under this
part until the last day of the eighth month following the original
due date of the return. Interest at the rate under section 23(2) of
1941 PA 122, MCL 205.23, shall be added to the amount of the tax
unpaid for the period of the extension.
Sec. 787. (1) A taxpayer required to file a return under this
part may be required to furnish a true and correct copy of any
return or portion of any return filed under the provisions of the
internal revenue code.
(2) A taxpayer shall file an amended return with the
department showing any alteration in or modification of a federal
income tax return that affects its tax base under this part. The
amended return shall be filed within 120 days after the final
determination by the internal revenue service.
Sec. 789. (1) At the request of the department, a taxpayer
required by the internal revenue code to file or submit an
information only return of income paid to others shall, to the
extent the information is applicable to residents of this state, at
the same time file or submit the information in the form and
content prescribed to the department.
(2) A taxpayer or a flow-through entity that did not make the
election under section 757 shall provide on or before the due date
of the return under section 785, upon the amendment of a return
filed under section 785 or the adjustment of the tax under this
part by the department, to any member to which the provision of
information is required by the internal revenue code all of the
following for the tax year:
(a) Information regarding the allocation and apportionment of
the business income described under this part.
(b) The amount of tax under this part that was deducted or
included in the determination of the member's share of business
income.
(c) If the reporting flow-through entity is a taxpayer, the
member's share of the tax imposed under this part on the taxpayer
for the tax year.
(d) If the reporting flow-through entity did not make the
election under section 757, the member's share of the amount of tax
allocated to the reporting flow-through entity under subdivisions
(c) and (d) by the other flow-through entities with tax years
ending on or within the reporting flow-through entity's tax year.
(e) The member's share of the tax allocated under subdivisions
(c) and (d) must be determined based on the member's share of the
income or gain generating the tax imposed under this part and
included in the member's share of business income. If a member is
allocated different portions of separately reported categories of
income and gain, then the allocated share of tax must be based on
the tax imposed under this part on each separate category of income
or gain.
(3) An estate or trust who is either a member of a flow-
through entity that elects to file a return and pay the tax imposed
under this part or a direct or indirect member of another flow-
through entity that elects to file a return and pay the tax imposed
under this part shall on or before the due date of the return
required under part 1 report to its beneficiaries their allocable
share of the tax imposed under this part and incurred by the estate
or trust in the same tax year. The allocable share is determined by
multiplying the total amount of tax imposed under this part and
incurred by the estate or trust in the tax year by a percentage
equal to a fraction, the numerator of which is the flow-through
entity business income tax base that is distributed to the
beneficiaries and the denominator of which is the total flow-
through entity business income tax base that is included in
distributable net income.
Sec. 791. (1) A unitary business group may elect to file a
combined return that includes each United States person that is
included in the unitary business group. Each United States person
included in a unitary business group or included in a combined
return shall be treated as a single person, and all transactions
between those persons included in the unitary business group shall
be eliminated from the flow-through entity business income tax base
and from the apportionment formulas.
(2) A person that is part of an affiliated group may elect
without the consent of the department to have all of the persons
that are included in that affiliated group to be treated as a
unitary business group. A taxpayer that elects to file as a unitary
business group pursuant to this subsection shall compute its tax
under this part in accordance with all other provisions of this
part that apply to a unitary business group. The taxpayer shall
make the election under this subsection on a form or in a format as
prescribed by the department that is to be filed in a timely manner
with the taxpayer's annual return. Each person included in the
affiliated group is deemed to have agreed to be bound by the
election made under this subsection and any renewal of that
election and to have waived any objection to its inclusion in the
affiliated group and treatment as a unitary business group. Each
person that subsequently enters the affiliated group after the tax
year for which the election is made is deemed to have consented to
the application of and is bound by the election and to have waived
any objection to its inclusion in the affiliated group and
treatment as a unitary business group. An election made pursuant to
this subsection is irrevocable and binding for and applicable to
the tax year for which it is made and for the next 9 tax years but
the liability for the tax under this part shall apply only for the
years in which an election under section 757 is made. Upon the
expiration of the election after it has been in effect for 10 tax
years, an election may be renewed for another 10 tax years, without
the consent of the department; provided however, that in the case
of a nonrenewal a new election under this subsection is not
permitted in any of the immediately following 3 tax years. The
renewal shall be made on a form or in a format as prescribed by the
department that is to be filed in a timely manner with the
taxpayer's annual return after the completion of a 10-year period
for which an election under this subsection was in place.
Sec. 793. (1) The tax imposed by this part shall be
administered by the department of treasury pursuant to 1941 PA 122,
MCL 205.1 to 205.31, and this part. If a conflict exists between
1941 PA 122, MCL 205.1 to 205.31, and this part, the provisions of
this part apply.
(2) The department may promulgate rules to implement this part
pursuant to the administrative procedures act of 1969, 1969 PA 306,
MCL 24.201 to 24.328.
(3) The department shall prescribe forms for use by taxpayers
and may promulgate rules in conformity with this part for the
maintenance by taxpayers of records, books, and accounts, and for
the computation of the tax, the manner and time of changing or
electing accounting methods and of exercising the various options
contained in this part, the making of returns, and the
Senate Bill No. 1170 as amended November 29, 2018
ascertainment, assessment, and collection of the tax imposed under
this part.
(4) The tax imposed by this part is in addition to all other
taxes for which the taxpayer may be liable.
(5) The department shall prepare and publish statistics from
the records kept to administer the tax imposed by this part that
detail the distribution of tax receipts by type of business, legal
form of organization, sources of tax base, timing of tax receipts,
and types of deductions. The statistics shall not result in the
disclosure of information regarding any specific taxpayer.
<<
Sec. 795. From the tax levied under
this part, that percentage of the gross collections before refunds that is equal to 1.012% divided by the tax rate levied under this part shall be deposited in the state school aid fund created in section 11 of article IX of the state constitution of 1963 and the balance of the revenue collected under this part after the distribution to the school aid fund shall be deposited into the general fund.>>
Sec. 797. There is appropriated to the department for the
2018-2019 state fiscal year the sum of $100.00 to begin
implementing the requirements of this part. Any portion of this
amount under this section that is not expended in the 2018-2019
state fiscal year shall not lapse to the general fund but shall be
carried forward in a work project account that is in compliance
with section 451a of the management and budget act, 1984 PA 431,
MCL 18.1451a, for the following state fiscal year.
Sec. 799. Notwithstanding any other provision of this act, a
person that is a disregarded entity for federal income tax purposes
under the internal revenue code shall be classified as a
disregarded entity for purposes of this part.
Enacting section 1. This amendatory act is retroactive and
effective for tax years beginning on and after January 1, 2018.