November 1, 2007, Introduced by Senator BRATER and referred to the Committee on Finance.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending section 203 (MCL 208.1203).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 203. (1) Except as otherwise provided in this act, there
is levied and imposed a modified gross receipts tax on every
taxpayer with nexus as determined under section 200. The modified
gross receipts tax is imposed on the modified gross receipts tax
base, after allocation or apportionment to this state at a rate of
0.80%.
(2) The tax levied and imposed under this section is upon the
privilege of doing business and not upon income or property.
(3) The modified gross receipts tax base means a taxpayer's
gross receipts less purchases from other firms before apportionment
under this act. The modified gross receipts of a unitary business
group is the sum of modified gross receipts of each entity or
person, other than a foreign operating entity or a person subject
to the tax imposed under chapter 2A or 2B, included in the unitary
business group less any modified gross receipts arising from
transactions between entities or persons included in the unitary
business group.
(4) For the 2008 tax year, deduct 65% of any remaining
business loss carryforward calculated under section 23b(h) of
former 1975 PA 228 that was actually incurred in the 2006 or 2007
tax year to the extent not deducted in tax years beginning before
January 1, 2008. A deduction under this subsection shall not
include any business loss carryforward that was incurred before
January 1, 2006. If the taxpayer is a unitary business group, the
business loss carryforward under this subsection may only be
deducted against the modified gross receipts tax base of that
entity or person included in the unitary business group calculated
as if the entity or person was not included in the unitary business
group.
(5) Nothing in this act shall prohibit a taxpayer who
qualifies for the credit under section 445 or a taxpayer who is a
dealer of new or used personal watercraft from collecting the tax
imposed under this section in addition to the sales price. The
amount remitted to the department for the tax under this section
shall not be less than the stated and collected amount.
Enacting section 1. This amendatory act takes effect January
1, 2008 and applies to all business activity occurring after
December 31, 2007.
Enacting section 2. 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. 874.
(b) Senate Bill No. 873.
(c) Senate Bill No. 877.
(d) Senate Bill No. 870.
(e) Senate Bill No. 871.