SB-1056, As Passed Senate, February 12, 2008
January 23, 2008, Introduced by Senators PRUSI and CASSIS and referred to the Committee on Finance.
A bill to amend 2007 PA 36, entitled
"Michigan business tax act,"
by amending section 115 (MCL 208.1115).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 115. (1) "Sale" or "sales" means, except as provided in
subdivision (e), the amounts received by the taxpayer as
consideration from the following:
(a) The transfer of title to, or possession of, property that
is stock in trade or other property of a kind that would properly
be included in the inventory of the taxpayer if on hand at the
close of the tax period or property held by the taxpayer primarily
for sale to customers in the ordinary course of the taxpayer's
trade or business. For intangible property, the amounts received
shall be limited to any gain received from the disposition of that
Senate Bill No. 1056 as amended February 6, 2008
property.
(b) The performance of services that constitute business
activities.
(c) The rental, lease, licensing, or use of tangible or
intangible property, including interest, that constitutes business
activity.
(d) Any combination of business activities described in
subdivisions (a), (b), and (c).
(e) For taxpayers not engaged in any other business
activities, sales include interest, dividends, and other income
from investment assets and activities and from trading assets and
activities.
(2) "Shareholder" means a person who owns outstanding stock in
a business or is a member of a business entity that files as a
corporation for federal income tax purposes. An individual is
considered as the owner of the stock owned, directly or indirectly,
by or for family members as defined by section 318(a)(1) of the
internal revenue code.
(3) "State" means any state of the United States, the District
of
Columbia, the Commonwealth of Puerto
Rico, any territory or
possession of the United States <<except for the Commonwealth of Puerto
Rico>>, and any foreign country, or a
political subdivision of any of the foregoing.
(4) "Subchapter S corporation" means a corporation electing
taxation under subchapter S or chapter 1 of subtitle A of the
internal revenue code, sections 1361 to 1379 of the internal
revenue code.