SB 962 Summary

• Amends the definition of "gross receipts" under Michigan's Business Tax Act (2007 PA 36) to exclude certain receipts effective August 2, 2010.

• Excludes amounts received by health care management consulting service providers that are reimbursed to clients for labor and nonlabor services paid by the client pursuant to a services agreement.

• Excludes medicaid premium and cost reimbursement receipts for health maintenance organizations holding state medicaid contracts, unless the state budget director certifies by January 1 that federally required actuarial soundness rates explicitly account for business tax obligations.

• Maintains phased-in exclusions for bad debt deductions, foreign dividends and royalties, collected taxes, and excise taxes on cigarettes, motor fuel, and alcohol over 3-5 year periods from 2008-2012.

• Provides detailed definitions for insurance companies, internal revenue code references, inventory, and corporate officers subject to the Business Tax Act.