MI HB5295

Amends section 261 of the Michigan Business Tax Act (2007 PA 36) to revise definitions related to financial institutions and their taxable activities.

Expands the definition of "financial institution" to explicitly include federally chartered farm credit system institutions as a taxable entity type.

Provides comprehensive definitions for terms including billing address, commercial domicile, credit cards, loans, real property, and transportation property used in calculating Michigan business tax obligations.

Clarifies that financial institutions must report gross business income from fees, commissions, interest, dividends, gains on asset sales, and other proceeds from financial operations, excluding internal transactions between unitary business group members.

Effective retroactively for taxes levied on and after January 1, 2008, with the act approved by the Governor on September 2, 2010.