HOUSE BILL No. 4559
April 22, 1999, Introduced by Reps. Stallworth and Vaughn and referred to the Committee on Tax Policy. A bill to amend 1975 PA 228, entitled "Single business tax act," by amending section 4 (MCL 208.4), as amended by 1995 PA 285. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 4. (1) "Casual transaction" means a transaction made 2 or engaged in other than in the ordinary course of repeated and 3 successive transactions of a like character, except that a trans- 4 action made or engaged in by a person that is incidental to that 5 person's regular business activity is a business activity within 6 the meaning of this act. 7 (2) "Commissioner" means the state commissioner of revenue. 8 (3) Except as otherwise provided in this section, 9 "compensation" means all wages, salaries, fees, bonuses, 10 commissions, or other payments made in the taxable year on behalf 11 of or for the benefit of employees, officers, or directors of the 00834'99 RJA 2 1 taxpayers and subject to or specifically exempt from withholding 2 under chapter 24, sections 3401 to 3406 of the internal revenue 3 code. Compensation includes, on a cash or accrual basis consis- 4 tent with the taxpayer's method of accounting for federal income 5 tax purposes, payments to state and federal unemployment compen- 6 sation funds, payments under the federal insurance contribution 7 act and similar social insurance programs, payments, including 8 self-insurance, for worker's compensation insurance, payments to 9 individuals not currently working, payments to dependents and 10 heirs of individuals because of current or former labor services 11 rendered by those individuals, payments to a pension, retirement, 12 or profit sharing plan, and payments for insurance for which 13 employees are the beneficiaries, including payments under health 14 and welfare and noninsured benefit plans and payments of fees for 15 the administration of health and welfare and noninsured benefit 16 plans. Compensation does not include any of the following: 17 (a) Discounts on the price of the taxpayer's merchandise or 18 services sold to the taxpayer's employees, officers, or directors 19 that are not available to other customers. 20 (b) Payments to an independent contractor. 21 (c) For tax years beginning after December 31, 1994, pay- 22 ments to state and federal unemployment compensation funds. 23 (d) For tax years beginning after December 31, 1994, the 24 employer's portion of payments under the federal insurance 25 contribution CONTRIBUTIONS act, CHAPTER 21 OF SUBTITLE C OF 26 CHAPTER 1 OF THE INTERNAL REVENUE CODE OF 1986, 26 U.S.C. 3101 TO 27 3128, the railroad retirement tax act, chapter 22 of title 26 of 00834'99 3 1 the United States Code SUBTITLE C OF CHAPTER 1 OF THE INTERNAL 2 REVENUE CODE OF 1986, 26 U.S.C. 3201 to 3233, and similar social 3 insurance programs. 4 (e) For tax years beginning after December 31, 1994, pay- 5 ments, including self-insurance payments, for worker's compensa- 6 tion insurance or federal employers liability act insurance pur- 7 suant to chapter 149, 35 Stat. 65, 45 U.S.C. 51 to 60. 8 (F) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31, 1998, COM- 9 PENSATION PAID IN THE TAX YEAR BY A PERSON LICENSED TO OPERATE A 10 CASINO UNDER THE MICHIGAN GAMING CONTROL AND REVENUE ACT, 11 INITIATED LAW OF 1996, MCL 432.201 TO 432.226, TO EMPLOYEES WHO 12 MEET BOTH OF THE FOLLOWING CRITERIA: 13 (i) THEY ARE RESIDENTS OF A CITY WITH A POPULATION OF 14 800,000 OR MORE AT THE TIME THE EXEMPTION FROM COMPENSATION IS 15 TAKEN UNDER THIS SUBDIVISION AND WERE RESIDENTS OF THAT CITY FOR 16 THE IMMEDIATELY PRECEDING 12 MONTHS. 17 (ii) THEY WERE EMPLOYED BY THE PERSON LICENSED TO OPERATE A 18 CASINO FOR AT LEAST 24 CONTINUOUS MONTHS. 19 (4) "Department" means the revenue division of the depart- 20 ment of treasury. 00834'99 Final page. RJA