reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-2 - Part 2 (206.601...206.699) › 281-1967-2-16 - Chapter 16 (206.680...206.699) › Section 206.693 - Administration of Tax; Conflicting Provisions; Rules; Forms; Additional Tax Liability; Statistics Detailing Distribution of Tax Receipts.

206.693 Administration of tax; conflicting provisions; rules; forms; additional tax liability; statistics detailing distribution of tax receipts.
Sec. 693.
(1) The tax imposed by this part shall be administered by the department of treasury pursuant to 1941 PA 122, MCL 205.1 to 205.31, and this part. If a conflict exists between 1941 PA 122, MCL 205.1 to 205.31, and this part, the provisions of this part apply.
(2) The department may promulgate rules to implement this part pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(3) The department shall prescribe forms for use by taxpayers and may promulgate rules in conformity with this part for the maintenance by taxpayers of records, books, and accounts, and for the computation of the tax, the manner and time of changing or electing accounting methods and of exercising the various options contained in this part, the making of returns, and the ascertainment, assessment, and collection of the tax imposed under this part.
(4) The tax imposed by this part is in addition to all other taxes for which the taxpayer may be liable.
(5) The department shall prepare and publish statistics from the records kept to administer the tax imposed by this part that detail the distribution of tax receipts by type of business, legal form of organization, sources of tax base, timing of tax receipts, and types of deductions. The statistics shall not result in the disclosure of information regarding any specific taxpayer.
History:
Add. 2011, Act 38, Eff. Jan. 1, 2012
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-2 - Part 2 (206.601...206.699) › 281-1967-2-16 - Chapter 16 (206.680...206.699) › Section 206.695 - Distribution of Revenue to General Fund.

***** 206.695 THIS SECTION IS AMENDED EFFECTIVE 91 DAYS AFTER ADJOURNMENT OF THE 2023 REGULAR SESSION SINE DIE: See 206.695.amended *****
206.695 Distribution of revenue to general fund.
Sec. 695.
The revenue collected under this part shall be distributed to the general fund.
History:
Add. 2011, Act 38, Eff. Jan. 1, 2012
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-2 - Part 2 (206.601...206.699) › 281-1967-2-16 - Chapter 16 (206.680...206.699) › Section 206.695.amended - Distribution of Revenue.

***** 206.695.amended THIS AMENDED SECTION IS EFFECTIVE 91 DAYS AFTER ADJOURNMENT OF THE 2023 REGULAR SESSION SINE DIE *****
206.695.amended Distribution of revenue.
Sec. 695.
(1) Except as otherwise provided under this section, the revenue collected under this part shall be distributed to the general fund. If the amendatory act that added section 51h takes effect before April 18, 2023, then for the 2021-2022 state fiscal year only, from the tax levied under this part, $800,000,000.00 of the revenue collected is appropriated and must be deposited into the state treasury to the credit of the Michigan taxpayer rebate fund created in section 51h, and the balance of the revenue collected under this part for that state fiscal year shall be deposited to the general fund.
(2) Beginning with the 2022-2023 state fiscal year through the 2024-2025 state fiscal year, from the tax levied under this part, the revenue collected under this part shall be deposited in the following manner:
(a) Up to $1,200,000,000.00 to the general fund.
(b) After the deposit under subdivision (a), up to $50,000,000.00, if available, to the Michigan housing and community development fund created in section 58a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458a.
(c) After the deposits under subdivisions (a) and (b), up to $50,000,000.00, if available, to the revitalization and placemaking fund created in section 696.
(d) After the deposits under subdivisions (a), (b), and (c), up to $500,000,000.00, if available, to the strategic outreach and attraction reserve fund created in section 4 of the Michigan trust fund act, 2000 PA 489, MCL 12.254.
(e) The balance of any revenue collected under this part after the deposits under subdivisions (a), (b), (c), and (d), to the general fund.
(3) Beginning with the 2025-2026 state fiscal year, from the tax levied under this part, $50,000,000.00 of the revenue collected under this part shall be deposited to the Michigan housing and community development fund created in section 58a of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1458a, and the balance of the revenue collected under this part for that state fiscal year shall be deposited to the general fund.
History:
Add. 2011, Act 38, Eff. Jan. 1, 2012 ;-- Am. 2023, Act 4, Eff. (sine die)
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-2 - Part 2 (206.601...206.699) › 281-1967-2-16 - Chapter 16 (206.680...206.699) › Section 206.696.added - Revitalization and Placemaking Fund.

***** 206.696.added THIS ADDED SECTION IS EFFECTIVE 91 DAYS AFTER ADJOURNMENT OF THE 2023 REGULAR SESSION SINE DIE *****
206.696.added Revitalization and placemaking fund.
Sec. 696.
(1) The revitalization and placemaking fund is created within the state treasury. The state treasurer may receive money or other assets from any source for deposit into the revitalization and placemaking fund. The state treasurer shall direct the investment of the revitalization and placemaking fund. The state treasurer shall credit to the revitalization and placemaking fund interest and earnings from fund investments.
(2) Money in the revitalization and placemaking fund at the close of the fiscal year shall remain in the fund and shall not lapse to the general fund.
(3) The Michigan strategic fund shall be the administrator of the revitalization and placemaking fund for auditing purposes.
(4) Beginning with the 2022-2023 state fiscal year and each state fiscal year thereafter, the Michigan strategic fund shall expend money from the revitalization and placemaking fund, upon appropriation, only to create and operate the revitalization and placemaking grants program to invest in projects that enable population and tax revenue growth through rehabilitation of vacant and blighted buildings and historic structures, rehabilitation and development of vacant properties, and development of permanent place-based infrastructure associated with social zones and traditional downtowns, outdoor dining, and place-based public spaces. If grant funds are used to support residential projects, those projects must comply with other program guidelines and eligibility as determined by the Michigan strategic fund.
(5) By December 31 annually, the Michigan strategic fund shall prepare and submit to the senate and house appropriations committees a report detailing the amount of revenue received by and expenditures from the revitalization and placemaking fund during the prior state fiscal year and the revitalization and placemaking fund balance at the end of the prior state fiscal year.
History:
Add. 2023, Act 4, Eff. (sine die)
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-2 - Part 2 (206.601...206.699) › 281-1967-2-16 - Chapter 16 (206.680...206.699) › Section 206.697 - Appropriation; Carrying Forward Unexpended Funds.

206.697 Appropriation; carrying forward unexpended funds.
Sec. 697.
There is appropriated to the department for the 2011-2012 state fiscal year the sum of $1,000,000.00 to begin implementing the requirements of this part. Any portion of this amount under this section that is not expended in the 2011-2012 state fiscal year shall not lapse to the general fund but shall be carried forward in a work project account that is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a, for the following state fiscal year.
History:
Add. 2011, Act 38, Eff. Jan. 1, 2012
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-2 - Part 2 (206.601...206.699) › 281-1967-2-16 - Chapter 16 (206.680...206.699) › Section 206.699 - Classification as Disregarded Entity for Federal Income Tax Purposes.

206.699 Classification as disregarded entity for federal income tax purposes.
Sec. 699.
Notwithstanding any other provision of this act, a person that is a disregarded entity for federal income tax purposes under the internal revenue code shall be classified as a disregarded entity for purposes of parts 2 and 3 of this act.
History:
Add. 2011, Act 309, Eff. Jan. 1, 2012
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-3 - Part 3 (206.701...206.725) › 281-1967-3-17 - Chapter 17 (206.701...206.715) › Section 206.701 - Definitions.

206.701 Definitions.
Sec. 701.
As used in this chapter:
(a) "Casino" means that term as defined in section 110.
(b) "Casino licensee" means a person licensed to operate a casino under the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.201 to 432.226.
(c) "Eligible production company" means that term as defined under section 455 of the Michigan business tax act, 2007 PA 36, MCL 208.1455.
(d) "Flow-through entity" means an entity that for the applicable tax year is treated as an S corporation under section 1362(a) of the internal revenue code, a general partnership, a limited partnership, a limited liability partnership, or a limited liability company, that for the applicable tax year is not taxed as a corporation for federal income tax purposes. Flow-through entity does not include any entity disregarded under section 699.
(e) "Member" means a shareholder of an S corporation, a partner in a general partnership, a limited partnership, or a limited liability partnership, a member of a limited liability company, or a beneficiary of a trust, that is a flow-through entity.
(f) "Nonresident" means an individual who is not a resident of or domiciled in this state, a business entity that does not have its commercial domicile in this state, or a trust not organized in this state.
(g) "Partnership" means a taxpayer that is required to or has elected to file as a partnership for federal income tax purposes.
(h) "Publicly traded partnership" means that term as defined under section 7704 of the internal revenue code.
(i) "Race meeting licensee" and "track licensee" mean a person to whom a race meeting license or track license is issued pursuant to section 8 of the horse racing law of 1995, 1995 PA 279, MCL 431.308.
(j) "S corporation" means a corporation electing taxation under subchapter S of chapter 1 of subtitle A of the internal revenue code, sections 1361 to 1379 of the internal revenue code.
History:
Add. 2011, Act 38, Eff. Jan. 1, 2012 ;-- Am. 2011, Act 194, Eff. Jan. 1, 2012 ;-- Am. 2011, Act 311, Eff. Jan. 1, 2012 ;-- Am. 2022, Act 148, Imd. Eff. July 19, 2022
Compiler's Notes:
This section as added by Act 38 of 2011 was assigned the compilation number "206.701". To avoid a conflict with another section previously numbered "206.701", Sec. 701 of 2006 PA 513 has been renumbered as 206.901.Enacting section 1 of Act 148 of 2022 provides:"Enacting section 1. This amendatory act is retroactive and applies to all tax years that begin on and after January 1, 2018."
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-3 - Part 3 (206.701...206.725) › 281-1967-3-17 - Chapter 17 (206.701...206.715) › Section 206.705 - Payment at Other Than Monthly Periods or Deposit in Separate Bank Account; Grounds.

206.705 Payment at other than monthly periods or deposit in separate bank account; grounds.
Sec. 705.
All provisions relating to the administration, collection, and enforcement of this act and 1941 PA 122, MCL 205.1 to 205.31, apply to all persons required to withhold taxes and to the taxes required to be withheld under this part. If the department has reasonable grounds to believe that a person required to withhold taxes under this part will not pay taxes withheld to this state or, if applicable, to the community college, as prescribed by this part, or to provide a more efficient administration, the department may require that person to make the return and pay to the department or, if applicable, to the community college, the tax deducted and withheld at other than monthly periods, or from time to time, or require that person to deposit the tax in a bank approved by the department in a separate account, in trust for the department or, if applicable, the community college, and payable to the department or the community college, and to keep the amount of the taxes in the account until payment over to the department or the community college.
History:
Add. 2011, Act 38, Eff. Jan. 1, 2012 ;-- Am. 2011, Act 192, Eff. Jan. 1, 2012
Compiler's Notes:
This section as added by Act 38 of 2011 was assigned the compilation number "206.705". To avoid a conflict with another section previously numbered "206.705", Sec. 705 of 2006 PA 513 has been renumbered as 206.905.
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-3 - Part 3 (206.701...206.725) › 281-1967-3-17 - Chapter 17 (206.701...206.715) › Section 206.707 - Filing 1099-Misc; Failure to Comply With Filing Requirement; Penalty; Filing With City.

206.707 Filing 1099-MISC; failure to comply with filing requirement; penalty; filing with city.
Sec. 707.
(1) A person required under the internal revenue code to file a form 1099-MISC for a tax year shall file a copy of that form 1099-MISC with the department on or before January 31 each year or on or before the day required for filing form 1099-MISC under the internal revenue code, whichever is later.
(2) A person who fails to comply with subsection (1) is liable to the department for a penalty of $50.00 for each form 1099-MISC the taxpayer fails to file.
(3) A person required to file a form 1099-MISC under this section shall also file a copy of the form 1099-MISC with the city reported as the payee's address on the form 1099-MISC if that city imposes a city income tax pursuant to the city income tax act, 1964 PA 284, MCL 141.501 to 141.787.
History:
Add. 2011, Act 38, Eff. Jan. 1, 2012
Compiler's Notes:
This section as added by Act 38 of 2011 was assigned the compilation number "206.707". To avoid a conflict with another section previously numbered "206.707", Sec. 707 of 2006 PA 513 has been renumbered as 206.907.
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-3 - Part 3 (206.701...206.725) › 281-1967-3-17 - Chapter 17 (206.701...206.715) › Section 206.709 - Federal or State Employer; Return by Officer of Employer Having Control of Payment of Compensation.

206.709 Federal or state employer; return by officer of employer having control of payment of compensation.
Sec. 709.
If the employer is the United States or this state, or any political subdivision of the United States or this state, or any agency or instrumentality of any of the foregoing, the return of the amount deducted and withheld upon compensation may be made by any officer of the employer having control of the payment of the compensation or an officer appropriately designated for that purpose.
History:
Add. 2011, Act 38, Eff. Jan. 1, 2012
Compiler's Notes:
This section as added by Act 38 of 2011 was assigned the compilation number "206.709". To avoid a conflict with another section previously numbered "206.709", Sec. 709 of 2006 PA 513 has been renumbered as 206.909.
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-3 - Part 3 (206.701...206.725) › 281-1967-3-17 - Chapter 17 (206.701...206.715) › Section 206.713 - Report on Operation and Effectiveness of New Jobs Training Programs and Corresponding Withholding Requirements; Contents.

206.713 Report on operation and effectiveness of new jobs training programs and corresponding withholding requirements; contents.
Sec. 713.
By July 1 of each year, based on the information received from each community college district pursuant to section 163 of the community college act of 1966, 1966 PA 331, MCL 389.163, the department shall submit to the governor, the clerk of the house of representatives, the secretary of the senate, the chairperson of each standing committee that has jurisdiction over economic development issues, the chairperson of each legislative budget subcommittee that has jurisdiction over economic development issues, and the president of the Michigan strategic fund an annual report concerning the operation and effectiveness of the new jobs training programs and the corresponding withholding requirements under this chapter. The report shall include all of the following:
(a) The number of community colleges participating in the new jobs training program and the names of those colleges.
(b) The number of employers that have entered into agreements with community colleges pursuant to the new jobs training program and the names of those employers organized by major industry group under the standard industrial classification code as compiled by the United States department of labor.
(c) The total amount of money from a new jobs credit from withholding each employer described in subdivision (b) has remitted to the community college district.
(d) The total amount of new jobs training revenue bonds each community college district has authorized, issued, or sold.
(e) The total amount of each community college district's debt related to agreements at the end of the calendar year.
(f) The number of degrees or certificates awarded to program participants in the calendar year.
(g) The number of individuals who entered a program at each community college district in the calendar year; who completed the program in the calendar year; and who were enrolled in a program at the end of the calendar year.
(h) The number of individuals who completed a program and were hired by an employer described in subdivision (b) to fill new jobs.
History:
Add. 2011, Act 38, Eff. Jan. 1, 2012
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-3 - Part 3 (206.701...206.725) › 281-1967-3-18 - Chapter 18 (206.721...206.725) › Section 206.725 - Effective Date of Chapter.

206.725 Effective date of chapter.
Sec. 725.
This chapter is effective and applies to all tax years that begin on and after January 1, 2018.
History:
Add. 2022, Act 148, Imd. Eff. July 19, 2022
Compiler's Notes:
Enacting section 1 of Act 148 of 2022 provides:"Enacting section 1. This amendatory act is retroactive and applies to all tax years that begin on and after January 1, 2018."
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-4 - Part 4 (206.801...206.847) › 281-1967-4-20 - Chapter 20 (206.801...206.809) › Section 206.801 - Meanings of Terms; Other Provisions.

206.801 Meanings of terms; other provisions.
Sec. 801.
A term used in this part and not defined differently shall have the same meaning as when used in comparable context in the laws of the United States relating to federal income taxes in effect for the tax year as provided in section 805(5) unless a different meaning is clearly required. A reference in this part to the internal revenue code includes other provisions of the laws of the United States relating to federal income taxes.
History:
Add. 2021, Act 135, Imd. Eff. Dec. 21, 2021
Compiler's Notes:
Enacting section 1 of Act 135 of 2021 provides:"Enacting section 1. This amendatory act is retroactive and intended to apply retroactively effective for tax years beginning on and after January 1, 2021."
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-4 - Part 4 (206.801...206.847) › 281-1967-4-20 - Chapter 20 (206.801...206.809) › Section 206.803 - Definitions; B to E.

206.803 Definitions; B to E.
Sec. 803.
(1) "Business activity" means a transfer of legal or equitable title to or rental of property, whether real, personal, or mixed, tangible or intangible, or the performance of services, or a combination thereof, made or engaged in, or caused to be made or engaged in, whether in intrastate, interstate, or foreign commerce, with the object of gain, benefit, or advantage, whether direct or indirect, to the taxpayer or to others, but does not include the services rendered by an employee to his or her employer, services as a director of a corporation or S corporation, or services as a manager of a limited liability company that has elected to file as a C corporation or S corporation for federal income tax purposes.
(2) "Business income" means federal taxable income and includes payments and items of income and expense that are attributable to business activity of the flow-through entity and separately reported to its members.
(3) "Corporation" means a person that is required or has elected to file as a C corporation as defined under section 1361(a)(2) and section 7701(a)(3) of the internal revenue code.
(4) "Department" means the department of treasury.
(5) "Domicile" means the principal place from which the trade or business of the flow-through entity is directed or managed.
(6) "Employee" means an employee as defined in section 3401(c) of the internal revenue code. A person from whom an employer is required to withhold for federal income tax purposes is prima facie considered an employee.
(7) "Employer" means an employer as defined in section 3401(d) of the internal revenue code. A person required to withhold for federal income tax purposes is prima facie considered an employer.
History:
Add. 2021, Act 135, Imd. Eff. Dec. 21, 2021
Compiler's Notes:
Enacting section 1 of Act 135 of 2021 provides:"Enacting section 1. This amendatory act is retroactive and intended to apply retroactively effective for tax years beginning on and after January 1, 2021."
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-4 - Part 4 (206.801...206.847) › 281-1967-4-20 - Chapter 20 (206.801...206.809) › Section 206.805 - Definitions; F to M.

206.805 Definitions; F to M.
Sec. 805.
(1) "Federal taxable income" means taxable income as defined in section 63 of the internal revenue code without the deductions described under section 703(a)(2) of the internal revenue code. For the purposes of this part in computing federal taxable income, an S corporation shall be treated as a corporation under section 1361(a)(2) of the internal revenue code and a partnership shall be treated as an association taxable as a corporation pursuant to an election under 26 CFR 301.7701-3(a).
(2) "Financial institution" means that term as defined in section 651.
(3) "Flow-through entity" means an entity that for the applicable tax year is treated as an S corporation or a partnership under the internal revenue code for federal income tax purposes. Flow-through entity does not include a publicly traded partnership, any entity disregarded under section 845, or any person subject to the tax imposed under chapter 13.
(4) "Insurance company" means that term as defined in section 607.
(5) "Internal revenue code" means the United States internal revenue code of 1986 in effect on January 1, 2021 or, at the option of the taxpayer, in effect for the tax year.
(6) "Member", when used in reference to a flow-through entity, means a shareholder of an S corporation or a partner or member in a partnership.
History:
Add. 2021, Act 135, Imd. Eff. Dec. 21, 2021
Compiler's Notes:
Enacting section 1 of Act 135 of 2021 provides:"Enacting section 1. This amendatory act is retroactive and intended to apply retroactively effective for tax years beginning on and after January 1, 2021."
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-4 - Part 4 (206.801...206.847) › 281-1967-4-20 - Chapter 20 (206.801...206.809) › Section 206.807 - Definitions; P to S.

206.807 Definitions; P to S.
Sec. 807.
(1) "Partnership" means an entity that is required to or has elected to file as a partnership for federal income tax purposes. Partnership includes a limited liability company that is treated as a partnership for federal income tax purposes.
(2) "Person" means an individual, bank, financial institution, insurance company, association, corporation, flow-through entity, receiver, estate, trust, or any other group or combination of groups acting as a unit.
(3) "Publicly traded partnership" means that term as defined under section 7704 of the internal revenue code.
(4) "S corporation" means a United States person electing taxation under sections 1361 to 1379 of the internal revenue code.
(5) "Sale" or "sales" means that term as defined in section 20.
(6) "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, and any foreign country, or a political subdivision of any of the foregoing.
History:
Add. 2021, Act 135, Imd. Eff. Dec. 21, 2021
Compiler's Notes:
Enacting section 1 of Act 135 of 2021 provides:"Enacting section 1. This amendatory act is retroactive and intended to apply retroactively effective for tax years beginning on and after January 1, 2021."
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-4 - Part 4 (206.801...206.847) › 281-1967-4-20 - Chapter 20 (206.801...206.809) › Section 206.809 - Definitions; T to U.

206.809 Definitions; T to U.
Sec. 809.
(1) "Tax" means the tax imposed under this part, including interest and penalties under this part, unless the term is given a more limited meaning in the context of this part or a provision of this part.
(2) "Tax year" means the calendar year, or the fiscal year ending during the calendar year, upon the basis of which the tax base of a taxpayer is computed under this part. If a return is made for a fractional part of a year, tax year means the period for which the return is made. Except for the first return required by this part, a taxpayer's tax year is for the same period as is covered by its federal income tax return. A taxpayer that has a 52- or 53-week tax year beginning not more than 7 days before the end of any month is considered to have a tax year beginning on the first day of the subsequent month.
(3) "Taxpayer" means a flow-through entity that elects pursuant to section 813 to be subject to the tax under this part.
(4) "United States person" means that term as defined in section 7701(a)(30) of the internal revenue code.
History:
Add. 2021, Act 135, Imd. Eff. Dec. 21, 2021
Compiler's Notes:
Enacting section 1 of Act 135 of 2021 provides:"Enacting section 1. This amendatory act is retroactive and intended to apply retroactively effective for tax years beginning on and after January 1, 2021."
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-4 - Part 4 (206.801...206.847) › 281-1967-4-21 - Chapter 21 (206.811...206.819) › Section 206.811 - Nexus; "Actively Solicits", "Gross Receipts", and "Physical Presence" Defined.

206.811 Nexus; "actively solicits", "gross receipts", and "physical presence" defined.
Sec. 811.
(1) Except as otherwise provided in this part, a taxpayer has substantial nexus in this state and is subject to the tax imposed under this part if the taxpayer elects to pay the tax pursuant to section 813 and if the taxpayer has a physical presence in this state for a period of more than 1 day during the tax year, actively solicits sales in this state and has gross receipts sourced to this state, or is a member or has an ownership interest or a beneficial interest in a flow-through entity, directly, or indirectly through 1 or more other flow-through entities, that has substantial nexus in this state.
(2) As used in this section:
(a) "Actively solicits" means either of the following:
(i) Speech, conduct, or activity that is purposefully directed at or intended to reach persons within this state and that explicitly or implicitly invites an order for a purchase or sale.
(ii) Speech, conduct, or activity that is purposefully directed at or intended to reach persons within this state that neither explicitly nor implicitly invites an order for a purchase or sale, but is entirely ancillary to requests for an order for a purchase or sale.
(b) "Gross receipts" means that term as defined under section 607.
(c) "Physical presence" means any activity conducted by the taxpayer or on behalf of the taxpayer by the taxpayer's employee, agent, or independent contractor acting in a representative capacity. Physical presence does not include the activities of professionals providing services in a professional capacity or other service providers if the activity is not significantly associated with the taxpayer's ability to establish and maintain a market in this state.
History:
Add. 2021, Act 135, Imd. Eff. Dec. 21, 2021
Compiler's Notes:
Enacting section 1 of Act 135 of 2021 provides:"Enacting section 1. This amendatory act is retroactive and intended to apply retroactively effective for tax years beginning on and after January 1, 2021."
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-4 - Part 4 (206.801...206.847) › 281-1967-4-21 - Chapter 21 (206.811...206.819) › Section 206.813 - Election to Pay Flow-Through Entity Tax; Irrevocable; Timing.

206.813 Election to pay flow-through entity tax; irrevocable; timing.
Sec. 813.
For tax years beginning on and after January 1, 2021, a flow-through entity may, in a form and manner as prescribed by the department, elect to file a return and pay the tax imposed by this part. Except as otherwise provided under this section, an election made under this section is an irrevocable election that shall continue for the next 2 subsequent tax years and the taxpayer shall continue to file a return and pay the tax imposed under this part as provided in section 833. A flow-through entity that elects to pay the tax imposed under this part shall file its election with the department on or before the fifteenth day of the third month of that tax year. However, an election made for any tax year beginning in 2021 must be made before the fifteenth day of the fourth calendar month after the effective date of the amendatory act that added this section. A separate election must be made after the expiration of the irrevocable period described in this section to continue to pay the tax imposed by this part. If, in accordance with section 847, the tax is not levied and imposed during any tax year, for any subsequent tax year that the tax is levied and imposed under this part, regardless of whether the taxpayer had previously made an election to pay under this section, the taxpayer is required to make a separate election to pay under this section.
History:
Add. 2021, Act 135, Imd. Eff. Dec. 21, 2021
Compiler's Notes:
Enacting section 1 of Act 135 of 2021 provides:"Enacting section 1. This amendatory act is retroactive and intended to apply retroactively effective for tax years beginning on and after January 1, 2021."
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-4 - Part 4 (206.801...206.847) › 281-1967-4-21 - Chapter 21 (206.811...206.819) › Section 206.817 - Tax Base; Apportionment; Business Activity of the Flow-Through Entity; Chapter 3.

206.817 Tax base; apportionment; business activity of the flow-through entity; chapter 3.
Sec. 817.
(1) Except as otherwise provided in this part, the business income tax base established under this part shall be apportioned in accordance with allocation and apportionment provisions in chapter 3.
(2) For a taxpayer that has a direct, or indirect through 1 or more other flow-through entities, ownership interest or beneficial interest in a flow-through entity, the taxpayer's business income that is directly attributable to the business activity of the flow-through entity shall be apportioned to this state using an apportionment factor determined under chapter 3 based on the business activity of the flow-through entity.
(3) A taxpayer is subject to tax in another state in either of the following circumstances:
(a) The taxpayer is subject to, or would be subject to, if the taxpayer was not a flow-through entity, a business privilege tax, a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax.
(b) That state has jurisdiction to subject the taxpayer to 1 or more of the taxes listed in subdivision (a) regardless of whether, in fact, that state does or does not subject the taxpayer to that tax.
History:
Add. 2021, Act 135, Imd. Eff. Dec. 21, 2021
Compiler's Notes:
Enacting section 1 of Act 135 of 2021 provides:"Enacting section 1. This amendatory act is retroactive and intended to apply retroactively effective for tax years beginning on and after January 1, 2021."
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-4 - Part 4 (206.801...206.847) › 281-1967-4-21 - Chapter 21 (206.811...206.819) › Section 206.819 - Tax Credit for Allocated Share of Tax Reported by Flow-Through Entity; Prohibition.

206.819 Tax credit for allocated share of tax reported by flow-through entity; prohibition.
Sec. 819.
Any taxpayer allocated income as a member of a flow-through entity by the flow-through entity may not claim a credit against the tax imposed by this part for the taxpayer's allocated share of the tax as reported by the other flow-through entity pursuant to section 839(1)(d) for the tax year ending on or within the taxpayer's same tax year.
History:
Add. 2021, Act 135, Imd. Eff. Dec. 21, 2021
Compiler's Notes:
Enacting section 1 of Act 135 of 2021 provides:"Enacting section 1. This amendatory act is retroactive and intended to apply retroactively effective for tax years beginning on and after January 1, 2021."
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-4 - Part 4 (206.801...206.847) › 281-1967-4-23 - Chapter 23 (206.831...206.847) › Section 206.831 - Estimated Payments and Quarterly Returns.

206.831 Estimated payments and quarterly returns.
Sec. 831.
(1) Except as otherwise provided under this section, a taxpayer that reasonably expects liability for the tax year to exceed $800.00 shall file an estimated return and pay an estimated tax for each quarter of the taxpayer's tax year in the same manner as provided in section 301.
(2) The interest and penalty provided by this part shall not be assessed for the 2022 tax year and each subsequent tax year, if the preceding year's tax liability under this part was $20,000.00 or less and if the taxpayer submitted 4 equal installments the sum of which equals the immediately preceding tax year's tax liability.
(3) Each estimated return shall be made on a form prescribed by the department and shall include an estimate of the annual tax liability and other information required by the state treasurer. The form prescribed under this subsection may be combined with any other tax reporting form prescribed by the department.
(4) Payments made under this section shall be a credit against the payment required with the annual tax return required in section 833.
(5) If the department considers it necessary to insure payment of the tax or to provide a more efficient administration of the tax, the department may require filing of the returns and payment of the tax for other than quarterly or annual periods.
History:
Add. 2021, Act 135, Imd. Eff. Dec. 21, 2021
Compiler's Notes:
Enacting section 1 of Act 135 of 2021 provides:"Enacting section 1. This amendatory act is retroactive and intended to apply retroactively effective for tax years beginning on and after January 1, 2021."
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-4 - Part 4 (206.801...206.847) › 281-1967-4-23 - Chapter 23 (206.831...206.847) › Section 206.833 - Annual or Final Return; Filing; Form and Content; Remittance of Final Liability; Information Return; Extension.

206.833 Annual or final return; filing; form and content; remittance of final liability; information return; extension.
Sec. 833.
(1) An annual or final return for the tax imposed under this part shall be filed with the department in the form and content prescribed by the department by the last day of the third month after the end of the taxpayer's tax year. Any final liability shall be remitted by the annual due date of the taxpayer's annual or final return, excluding any extension of time to file the return as provided under subsections (2) and (3). A taxpayer that elected to file a return for 3 years under section 813 whose tax liability under this part is less than or equal to $100.00 shall file an information return in accordance with section 711.
(2) The department, upon application of the taxpayer and for good cause shown, may extend the date for filing the annual return. Interest at the rate under section 23(2) of 1941 PA 122, MCL 205.23, shall be added to the amount of the tax unpaid for the period of the extension. The state treasurer shall require with the application payment of the estimated tax liability unpaid for the tax period covered by the extension.
(3) If a taxpayer is granted an extension of time within which to file the federal income tax return for any tax year, the filing of a copy of the request for extension together with a tentative return and payment of an estimated tax with the department by the due date provided in subsection (1) shall automatically extend the due date for the filing of an annual or final return under this part until the last day of the sixth month following the original due date of the return. Interest at the rate under section 23(2) of 1941 PA 122, MCL 205.23, shall be added to the amount of the tax unpaid for the period of the extension.
History:
Add. 2021, Act 135, Imd. Eff. Dec. 21, 2021
Compiler's Notes:
Enacting section 1 of Act 135 of 2021 provides:"Enacting section 1. This amendatory act is retroactive and intended to apply retroactively effective for tax years beginning on and after January 1, 2021."
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-4 - Part 4 (206.801...206.847) › 281-1967-4-23 - Chapter 23 (206.831...206.847) › Section 206.835 - Furnishing Copy of Return Filed Under Internal Revenue Code; Amended Return.

206.835 Furnishing copy of return filed under internal revenue code; amended return.
Sec. 835.
(1) A taxpayer required to file a return under this part may be required to furnish a true and correct copy of any return or portion of any return filed under the provisions of the internal revenue code.
(2) A taxpayer shall file an amended return with the department showing any alteration in or modification of a federal income tax return that affects its tax base under this part. The amended return shall be filed within 180 days after the final determination by the internal revenue service.
History:
Add. 2021, Act 135, Imd. Eff. Dec. 21, 2021
Compiler's Notes:
Enacting section 1 of Act 135 of 2021 provides:"Enacting section 1. This amendatory act is retroactive and intended to apply retroactively effective for tax years beginning on and after January 1, 2021."
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-4 - Part 4 (206.801...206.847) › 281-1967-4-23 - Chapter 23 (206.831...206.847) › Section 206.837 - Added Interest; Exception for 2021 Refunds.

206.837 Added interest; exception for 2021 refunds.
Sec. 837.
For tax years ending in 2021 only, if a taxpayer elects to pay the tax under section 813 for the tax year ending in 2021 and the annual return filed under this part for that tax year results in a refund, that refund is not subject to added interest under section 30(3) of 1941 PA 122, MCL 205.30.
History:
Add. 2021, Act 135, Imd. Eff. Dec. 21, 2021
Compiler's Notes:
Enacting section 1 of Act 135 of 2021 provides:"Enacting section 1. This amendatory act is retroactive and intended to apply retroactively effective for tax years beginning on and after January 1, 2021."
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-4 - Part 4 (206.801...206.847) › 281-1967-4-23 - Chapter 23 (206.831...206.847) › Section 206.841 - Administration of Tax; Conflicting Provisions; Rules; Forms; Additional Tax Liability; Statistics Detailing Distribution of Tax Receipts.

206.841 Administration of tax; conflicting provisions; rules; forms; additional tax liability; statistics detailing distribution of tax receipts.
Sec. 841.
(1) The tax imposed by this part shall be administered by the department of treasury pursuant to 1941 PA 122, MCL 205.1 to 205.31, and this part. If a conflict exists between 1941 PA 122, MCL 205.1 to 205.31, and this part, the provisions of this part apply.
(2) The department may promulgate rules to implement this part pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(3) The department shall prescribe forms for use by taxpayers and may promulgate rules in conformity with this part for the maintenance by taxpayers of records, books, and accounts, and for the computation of the tax, the manner and time of changing or electing accounting methods and of exercising the various options contained in this part, the making of returns, and the ascertainment, assessment, and collection of the tax imposed under this part.
(4) The tax imposed by this part is in addition to all other taxes for which the taxpayer may be liable.
(5) The department shall prepare and publish statistics from the records kept to administer the tax imposed by this part that detail the distribution of tax receipts by type of business, legal form of organization, sources of tax base, timing of tax receipts, and types of deductions. The statistics shall not result in the disclosure of information regarding any specific taxpayer.
(6) The department may require the taxpayer to remit any payment due under this part to the department by an electronic funds transfer method approved by the department.
History:
Add. 2021, Act 135, Imd. Eff. Dec. 21, 2021
Compiler's Notes:
Enacting section 1 of Act 135 of 2021 provides:"Enacting section 1. This amendatory act is retroactive and intended to apply retroactively effective for tax years beginning on and after January 1, 2021."
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-4 - Part 4 (206.801...206.847) › 281-1967-4-23 - Chapter 23 (206.831...206.847) › Section 206.843 - Distribution to State School Aid Fund; Balance to General Fund.

206.843 Distribution to state school aid fund; balance to general fund.
Sec. 843.
From the tax levied under this part, that percentage of the gross collections before refunds that is equal to 1.012% divided by the tax rate levied under this part shall be deposited in the state school aid fund created in section 11 of article IX of the state constitution of 1963 and the balance of the revenue collected under this part after the distribution to the school aid fund shall be deposited into the general fund.
History:
Add. 2021, Act 135, Imd. Eff. Dec. 21, 2021
Compiler's Notes:
Enacting section 1 of Act 135 of 2021 provides:"Enacting section 1. This amendatory act is retroactive and intended to apply retroactively effective for tax years beginning on and after January 1, 2021."
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-4 - Part 4 (206.801...206.847) › 281-1967-4-23 - Chapter 23 (206.831...206.847) › Section 206.845 - Classification as Disregarded Entity for Federal Income Tax Purposes.

206.845 Classification as disregarded entity for federal income tax purposes.
Sec. 845.
Notwithstanding any other provision of this act, a person that is a disregarded entity for federal income tax purposes under the internal revenue code shall be classified as a disregarded entity for purposes of this part.
History:
Add. 2021, Act 135, Imd. Eff. Dec. 21, 2021
Compiler's Notes:
Enacting section 1 of Act 135 of 2021 provides:"Enacting section 1. This amendatory act is retroactive and intended to apply retroactively effective for tax years beginning on and after January 1, 2021."
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 281 of 1967 - Income Tax Act of 1967 (206.1 - 206.847) › 281-1967-4 - Part 4 (206.801...206.847) › 281-1967-4-23 - Chapter 23 (206.831...206.847) › Section 206.847 - Imposition of Tax; Subject to Certain State and Local Tax Deduction Limitations Under the Internal Revenue Code.

206.847 Imposition of tax; subject to certain state and local tax deduction limitations under the internal revenue code.
Sec. 847.
The tax created under this part is levied and imposed for any tax year that section 164(b)(6)(B) of the internal revenue code limits the amount an individual is allowed to deduct under section 164(a) of the internal revenue code for the same tax year. The tax created under this part is not levied and imposed for any tax year that section 164(b)(6)(B) of the internal revenue code does not limit the amount an individual is allowed to deduct under section 164(a) of the internal revenue code for the same tax year.
History:
Add. 2021, Act 135, Imd. Eff. Dec. 21, 2021
Compiler's Notes:
Enacting section 1 of Act 135 of 2021 provides:"Enacting section 1. This amendatory act is retroactive and intended to apply retroactively effective for tax years beginning on and after January 1, 2021."
2023 Michigan Compiled Laws › Chapter 206 - Income Tax Act of 1967 › Act 513 of 2006 - Individual or Family Development Account Program Act (206.901 - 206.911) › Section 206.901 - Short Title.

206.901 Short title.
Sec. 1.
This act shall be known and may be cited as the "individual or family development account program act".
History:
2006, Act 513, Eff. Jan. 1, 2007
Compiler's Notes:
This section as originally enacted was assigned the compilation number "206.701". To avoid a conflict with another section numbered "206.701", this section has been renumbered as 206.901.