April 21, 2010, Introduced by Senator THOMAS and referred to the Committee on Appropriations.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending section 601 (MCL 208.1601), as amended by 2007 PA 145.
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 exceed the fiscal year 2008 base, 60% of that
excess shall be refunded in the immediately succeeding fiscal year
as provided in subsection (5) and the remaining 40% shall be
deposited into the countercyclical budget and economic
stabilization fund created in section 351 of the management and
budget act, 1984 PA 431, MCL 18.1351. To calculate the fiscal year
2008 base, multiply $2,619,100,000.00 by 1.0075 and then multiply
this product by the United States consumer price index for fiscal
year 2008 and then divide this product by the United States
consumer price index for fiscal year 2007.
(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, 60% of that excess
shall be refunded in the immediately succeeding fiscal year as
provided in subsection (5) and the remaining 40% shall be deposited
into the countercyclical budget and economic stabilization fund
created in section 351 of the management and budget act, 1984 PA
431, MCL 18.1351. To calculate the fiscal year 2009 base, multiply
$3,051,500,000.00 by 1.015 and then multiply this product by the
United States consumer price index for fiscal year 2009 and then
divide this product by the United States consumer price index for
fiscal year 2007.
(3) For the 2010 fiscal year and each fiscal year after 2010,
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
base, 60% of that excess shall be refunded in the immediately
succeeding fiscal year as provided in subsection (5) and the
remaining 40% shall be deposited into the countercyclical budget
and economic stabilization fund created in section 351 of the
management and budget act, 1984 PA 431, MCL 18.1351. To calculate
the fiscal year base, multiply the fiscal year base for the
immediately preceding fiscal year by 1.0075 and then multiply this
product by the United States consumer price index for the fiscal
year and divide this product by the United States consumer price
index for the immediately preceding fiscal year.
(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 created in section 351 of the
management and budget act, 1984 PA 431, MCL 18.1351.
(5) For the 2008 fiscal year, the refund available under
subsection (1) 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) 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. For
each fiscal year after the 2008 fiscal year, the refund available
under subsection (2) or (3) shall be applied pro rata to the
taxpayers that claimed 1 or more credits under section 403 or 405
during the immediately preceding fiscal year. The taxpayer's pro
rata share shall be the total amount to be refunded under
subsection (2) or (3) multiplied by a fraction the numerator of
which is the credits claimed under sections 403 and 405 by the
taxpayer during the immediately preceding fiscal year and the
denominator of which is the sum of the credits claimed under
sections 403 and 405 by all taxpayers during the immediately
preceding fiscal year.
(6) As used in this section:
(a) "Fiscal year" means the state fiscal year that commences
October
July 1 and continues through September June 30.
(b) "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.
(c) "United States consumer price index" means the United
States consumer price index for all urban consumers as defined and
reported by the United States department of labor, bureau of labor
statistics.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 1281
of the 95th Legislature is enacted into law.