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MI HB4502

Bill

Status

Passed

12/28/2017

Primary Sponsor

James Lower

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Origin

House of Representatives

99th Legislature

AI Summary

  • Amends Michigan's Corporate Income Tax Act to add exemption for self-insurer groups operating under section 611(2) of the Worker's Disability Compensation Act of 1969.

  • Clarifies corporate income tax treatment of foreign persons, requiring calculation of tax base only on United States business activity and sales where title passes within the United States.

  • Defines "business income" for foreign persons as gross income from U.S. business activities minus related deductions, including proceeds from sales shipped to U.S. purchasers and services performed in the United States.

  • Establishes sales factor calculation for foreign persons using ratio of Michigan sales to total U.S. sales, counting only sales where title passes within the United States.

  • Effective date: March 20, 2018 (90 days after enactment on December 20, 2017).

Legislative Description

Corporate income tax; exemptions; certain self-insurer groups; exempt from taxation. Amends sec. 625 of 1967 PA 281 (MCL 206.625).

Corporate income tax: exemptions

Last Action

Assigned Pa 216'17 With Immediate Effect

12/28/2017

Committee Referrals

Finance5/30/2017
Tax Policy4/25/2017

Full Bill Text

No bill text available