SENATE BILL No. 405

 

 

April 24, 2003, Introduced by Senator EMERSON and referred to the Committee on Finance.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1967 PA 281, entitled                                             

                                                                                

    "Income tax act of 1967,"                                                   

                                                                                

    by amending section 315 (MCL 206.315).                                      

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 315.  (1) Every person, other than a corporation,                      

                                                                                

2   required to make a return for any taxable period under the                  

                                                                                

3   internal revenue code, except as otherwise  herein  specifically            

                                                                                

4   provided in this act, if his or her adjusted gross income is in             

                                                                                

5   excess of the personal exemptions allowed by this act shall                 

                                                                                

6   render on or before the fifteenth day of the fourth month                   

                                                                                

7   following the close of that taxable period to the department a              

                                                                                

8   return setting forth all of the following:                                  

                                                                                

9       (a) The amount of adjusted gross income on the return made                  

                                                                                

10  to the United States internal revenue service for federal income            

                                                                                

11  tax purposes and as provided in the definitions contained in this           

                                                                                


                                                                                

1   act and the rules issued  thereunder  under this act.                       

                                                                                

2       (b) The personal and dependency exemptions as allowed by                    

                                                                                

3   this act.                                                                   

                                                                                

4       (c) The amount of tax due under this act, less credits                      

                                                                                

5   claimed against the tax.                                                    

                                                                                

6       (d) Other information for the purposes of carrying out this                 

                                                                                

7   act as may be prescribed by the  commissioner  department.                  

                                                                                

8       (e) The balance of the tax shown to be due on the return is                 

                                                                                

9   due and shall be paid by the date fixed for filing the return               

                                                                                

10  unless the balance is less than $1.00, in which event payment is            

                                                                                

11  not required.                                                               

                                                                                

12      (2) A nonresident member who has income in this state from 1                

                                                                                

13  or more flow-through entities may elect to be included in the               

                                                                                

14  composite income tax return of a flow-through entity of which the           

                                                                                

15  nonresident member is a member.                                             

                                                                                

16      (3) A flow-through entity may file a composite income tax                   

                                                                                

17  return on behalf of electing nonresident members and report and             

                                                                                

18  pay the tax due based on the electing nonresident members' shares           

                                                                                

19  of income available for distribution from the flow-through entity           

                                                                                

20  for doing business in, or deriving income from, sources within              

                                                                                

21  this state.                                                                 

                                                                                

22      (4) A nonresident member that has been included in a                        

                                                                                

23  composite income tax return and also files an individual income             

                                                                                

24  tax return for the same taxable period may claim a credit against           

                                                                                

25  the tax imposed by this act on that individual income tax return            

                                                                                

26  for the amount of taxes paid on behalf of the nonresident member            

                                                                                

27  by the flow-through entity on that composite income tax return.             


                                                                                

1       (5) A composite income tax return is due on or before each                  

                                                                                

2   April 15 and shall report the information required by the                   

                                                                                

3   department for the immediately preceding calendar year.                     

                                                                                

4       Enacting section 1.  This amendatory act takes effect on                    

                                                                                

5   October 1, 2003.                                                            

                                                                                

6       Enacting section 2.  This amendatory act does not take                      

                                                                                

7   effect unless Senate Bill No. 404                                           

                                                                                

8                          of the 92nd Legislature is enacted into              

                                                                                

9   law.