October 31, 2007, Introduced by Rep. Condino and referred to the Committee on Tax Policy.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending section 601 (MCL 208.1601); and to repeal acts and
parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 601. (1) For the 2008 fiscal year, except as otherwise
provided under subsection (4), if total net cash payments from the
tax imposed under this act plus any net cash payments from former
1975 PA 228 less any net cash payments made by insurance companies
under
either act this act or
former 1975 PA 228 exceed
$2,398,000,000.00, 50% of that excess shall be refunded in the
immediately succeeding fiscal year as provided in subsection (5)
and
the remaining 50% shall be deposited into the countercyclical
budget
and economic stabilization fund. pursuant to section 353 of
the
management and budget act, 1984 PA 431, MCL 18.1353.
(2) For the 2009 fiscal year, except as otherwise provided
under subsection (4), if total net cash payments from the tax
imposed under this act, excluding any revenue collected pursuant to
chapter 2A, exceed the fiscal year 2009 base, 50% of that excess
shall be refunded in the immediately succeeding fiscal year as
provided in subsection (5) and the remaining 50% shall be deposited
into
the countercyclical budget and economic stabilization fund.
pursuant
to section 353 of the management and budget act, 1984 PA
431,
MCL 18.1353. To calculate the
fiscal year 2009 base, the
department shall multiply $2,398,000,000.00 by 1.01 and then
multiply this product by 2009 fiscal year Michigan personal income
divided by 2008 fiscal year Michigan personal income.
(3) For the 2010 fiscal year, except as otherwise provided
under subsection (4), if total net cash payments from the tax
imposed under this act, excluding any revenue collected pursuant to
chapter 2A, exceed the fiscal year 2010 base, 50% of that excess
shall be refunded in the immediately succeeding fiscal year as
provided in subsection (5) and the remaining 50% shall be deposited
into
the countercyclical budget and economic stabilization fund.
pursuant
to section 353 of the management and budget act, 1984 PA
431,
MCL 18.1353. To calculate the
fiscal year 2010 base, the
department shall multiply $2,398,000,000.00 by 1.0201 and then
multiply this product by 2010 fiscal year Michigan personal income
divided by 2008 fiscal year Michigan personal income.
(4) If the amount of the total net cash payments collected
from the tax imposed under this act, excluding any revenue
collected pursuant to chapter 2A, exceeds the amount described in
the applicable subsection by less than $5,000,000.00, then all of
that
excess shall be deposited into the countercyclical budget and
economic
stabilization fund. pursuant
to section 353 of the
management
and budget act, 1984 PA 431, MCL 18.1353.
(5)
The refund available authorized
under subsection (1), (2),
or (3) shall be applied pro rata to the taxpayers that made
positive net cash payments during the fiscal year. The taxpayer's
pro rata share shall be the total amount to be refunded under
subsection (1), (2), or (3) multiplied by a fraction the numerator
of which is the positive net payments made by the taxpayer during
the fiscal year and the denominator of which is the sum of the
positive net cash payments made by all taxpayers during the fiscal
year.
(6) As used in this section:
(a) "Budget stabilization fund" means the countercyclical
budget and economic stabilization fund created under section 351 of
the management and budget act, 1984 PA 431, MCL 18.1351.
(b) (a)
"Fiscal year" means the
state fiscal year that
commences October 1 and continues through September 30.
(c) (b)
"Fiscal year Michigan
personal income" is means
the
average of the 4 quarterly values for the fiscal year, as published
by the United States department of commerce, bureau of economic
analysis. Fiscal year personal income for subsection (2) is
calculated using the personal income totals published in December
2009. Fiscal year personal income for subsection (3) is calculated
using the personal income totals published in December 2010.
(d) (c)
"Net cash payments" for
the fiscal year are equal to
cash annual and estimated payments made during the fiscal year less
refunds paid during the fiscal year. Refunds paid under this
section are not used to reduce net cash payments for purposes of
calculating refunds paid out under this section.
Enacting section 1. Sections 353c, 353e, and 353f of
management and budget act, 1984 PA 431, MCL 18.1353c, 18.1353e, and
18.1353f, are repealed.
Enacting section 2. This amendatory act takes effect January
1, 2008 and applies to all business activity occurring after
December 31, 2007.
Enacting section 3. This amendatory act does not take effect
unless all of the following bills of the 94th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 5401(request no.
05498'07 *).
(b) Senate Bill No.____ or House Bill No. 5402(request no.
05499'07 *).
(c) Senate Bill No.____ or House Bill No. 5403(request no.
05500'07 *).
(d) Senate Bill No.____ or House Bill No. 5404(request no.
05501'07 *).
(e) Senate Bill No.____ or House Bill No. 5405(request no.
05502'07 *).