MI SB0362

Amends Michigan's franchise tax on financial institutions to clarify apportionment rules for unitary business groups, effective for tax years beginning after December 31, 2018

Maintains the franchise tax rate of 0.29% on the tax base of financial institutions with substantial nexus in Michigan

Defines substantial nexus to include physical presence in the state for more than 1 day, active solicitation with $350,000+ gross receipts sourced to Michigan, or ownership interest in a flow-through entity with nexus in the state

Requires that for unitary business groups of financial institutions, the gross business factor calculation includes gross business of all members in the state without regard to individual nexus, while eliminating intercompany gross business between group members

Specifies that part-year members acquired or disposed of during the tax year are included in the gross business factor calculation only for the portion of the year they met control and relationship parameters or filed as an affiliated group