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MI HB5010

Bill

Status

Passed

2/26/2014

Primary Sponsor

Kevin Cotter

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Origin

House of Representatives

97th Legislature

AI Summary

  • Clarifies corporate income tax exemptions for organizations under Internal Revenue Code sections 501(c)(12) and 501(c)(16), and certain 501(c)(4) organizations that fail to meet the 85% member income requirement of 501(c)(12)

  • Establishes that the tax base attributable to unrelated business activities of exempt organizations is subject to Michigan corporate income tax

  • Modifies the sales factor calculation for unitary business groups to include all sales in Michigan by persons in the group regardless of nexus, with inter-company sales eliminated from the calculation

  • Specifies that foreign persons calculate their corporate income tax base on United States business activity only, with sales factor based on Michigan sales divided by total United States sales

  • Applies retroactively to tax years beginning after December 31, 2011, effective February 25, 2014

Legislative Description

Corporate income tax; exemptions; exemption for certain domestic international sales corporations and sales factor for certain flow-through entities; provide for and clarify. Amends secs. 625 & 663 of 1967 PA 281 (MCL 206.625 & 206.663).

Corporate income tax, unitary filing

Last Action

Assigned Pa 15'14 With Immediate Effect

2/26/2014

Committee Referrals

Finance11/12/2013
Tax Policy9/26/2013

Full Bill Text

No bill text available