SB-1053, As Passed Senate, February 14, 2008

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 1053

 

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 2007 PA 36, entitled

 

"Michigan business tax act,"

 

by amending section 511 (MCL 208.1511).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 511. A unitary business group shall file a combined

 

return that includes each United States person, other than a

 

foreign operating entity, that is included in the unitary business

 

group. Each United States person included in a unitary business

 

group or included in a combined return shall be treated as a single

 

person and all transactions between those persons included in the

 

unitary business group shall be eliminated from the business income

 

tax base, modified gross receipts tax base, and the apportionment

 

formula under this act. If a United States person included in a

 

unitary business group or included in a combined return is subject


 

to the tax under chapter 2A or 2B, any business income attributable

 

to that person shall be eliminated from the business income tax

 

base, any modified gross receipts attributable to that person shall

 

be eliminated from the modified gross receipts tax base, and any

 

sales attributable to that person shall be eliminated from the

 

apportionment formula under this act. A unitary business group may

 

elect to include another person that would not otherwise be

 

included in the unitary business group as long as that person meets

 

the ownership requirements of a unitary business group. The

 

election to include another person that would not otherwise be

 

included in the unitary business group shall be for a period of not

 

less than 5 years.