Michigan Manufacturers Association > Government Affairs > Legislative Agenda > Tax Policy Reform > Fixing Tax Regulatory Environment

Bill Number	Sponsor	Description	Status	MMA Position
SB 678	Sen. Proos	would add Section 699 to state that, notwithstanding any other provision of the Act, a person that was a disregarded entity for Federal income tax purposes under the IRC would have to be classified as a disregarded entity for purposes of Parts 2 and 3 of the Act. (Part 3 prescribes withholding requirements that apply to flow-through entities and others.)	12/28/2011 ASSIGNED PA 0309'11 WITH IMMEDIATE EFFECT	support
SB 807	Sen. Hildenbrand	The bill would amend Part 2 (Corporate Income Tax) of the Income Tax Act to revise the tax base apportionment for a taxpayer that has an ownership or beneficial interest in a flow-through entity that is unitary with the taxpayer.	12/28/2011 ASSIGNED PA 0310'11 WITH IMMEDIATE EFFECT	support
SB 369	Sen. Brandenburg	The bill would amend the Michigan Business Tax (MBT) Act to do the following: -- Exclude from "business income" income from investment activity that was not in the regular course of the person's trade or business, in the case of a person organized exclusively to conduct investment activity. -- Modify the definition of "business income" for an individual, estate, or partnership organized exclusively for estate or gift planning purposes. -- Exclude from "gross receipts" receipts from investment activity other than receipts from transactions or activities in the regular course of the person's trade or business, in the case of a person organized exclusively to conduct investment activity. -- Revise several adjustments to the business income tax base. -- Disallow a personal property tax credit claimed for property that was classified but not included, and allow the credit for property that was included but not classified, as industrial personal property under the General Property Tax Act before the bill's effective date. -- Require members of a unitary business group to be treated as a single person for purposes of exemptions, deductions, subtractions, credits, and the filing threshold. -- Amend the definition of various terms.	12/28/2011 PA 305	support
HB 4940	Rep. Gilbert	These bills are described by the Department of Treasury as follow-up or clean-up bills to the recently enacted comprehensive changes to the state Income Tax Act. Those changes, which take effect January 1, 2012, include the creation of a new Corporate Income Tax to replace the Michigan Business Tax. Each of the bills addresses a single section of the Income Tax Act, except for House Bill 4947, which amends the Michigan Business Tax Act. (There is a similar package of bills in the Senate -- Senate Bills 650-681.)The various amendments are said to be aimed at "clarifying" certain existing provisions, including the definition of key terms. As such, the bills are intended to aid in the implementation of newly enacted tax legislation rather than make substantive changes. Only one bill is considered to have a fiscal impact—House Bill 4967. That bill would add a Section 673 to the Income Tax Act so that the new Corporate Income Tax will contain a provision that allows the recapture of part or all of certain tax credits if the taxpayer that claimed the credit failed to satisfy the conditions of the credit. The credits to be recaptured are those awarded under the old Single Business Tax or the more recent Michigan Business Tax. The recaptured amounts would be added back to taxpayer's income tax liability.	12/13/2011 REFERRED TO COMMITTEE ON FINANCE 12/28/2011 assigned PA 311'11 with immediate effect	support