reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-1 - Chapter 1 General Provisions (141.501...141.509.amended) › Section 141.508 - Imposition of City Income Tax Within Renaissance Zone; Amendment of City Income Tax Ordinance.

141.508 Imposition of city income tax within renaissance zone; amendment of city income tax ordinance.
Sec. 8.
If a city or any part of a city that imposes a city income tax pursuant to this act is within the boundaries of a renaissance zone designated pursuant to the Michigan renaissance zone act, Act No. 376 of the Public Acts of 1996 , being sections 125.2681 to 125.2696 of the Michigan Compiled Laws, the city shall amend its city income tax ordinance to include section 35 of chapter 2. As used in this section, "renaissance zone" means that term as defined in Act No. 376 of the Public Acts of 1996.
History:
Add. 1996, Act 442, Imd. Eff. Dec. 19, 1996
Compiler's Notes:
Former MCL 141.508, which pertained to administering and collection of city income tax, was repealed by Act 149 of 1970, Imd. Eff. Aug. 1, 1970.
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-1 - Chapter 1 General Provisions (141.501...141.509.amended) › Section 141.509 - Administration, Enforcement, and Collection of City Income Tax by Department of Treasury; Agreement; Disposition of Amounts Collected; Provisions.

***** 141.509 THIS SECTION IS AMENDED EFFECTIVE 91 DAYS AFTER ADJOURNMENT OF THE 2023 REGULAR SESSION SINE DIE: See 141.509.amended *****
141.509 Administration, enforcement, and collection of city income tax by department of treasury; agreement; disposition of amounts collected; provisions.
Sec. 9.
(1) For the 1996 tax year and each year after 1996, a city that imposes a city income tax pursuant to this act may enter into an agreement with the department of treasury under which the department of treasury shall administer, enforce, and collect the city income tax on behalf of the city.
(2) City income taxes, interest, penalties, and collection fees collected under an agreement entered into pursuant to subsection (1) shall be kept in the city income tax trust fund and shall be paid to the city, except that an amount of the taxes collected as determined in the agreement may be retained by the department of treasury to cover the cost of collection and administration and that amount shall be deposited into the state general fund. The department of treasury shall not charge to or collect from a taxpayer any amount not otherwise authorized by law in conjunction with the collection of city income tax pursuant to an agreement entered into pursuant to this section.
(3) If the city enters into an agreement under subsection (1), the agreement shall include provisions that relate to all of the following:
(a) The development of and distribution of forms required by the agreement and the ordinance under chapter 2.
(b) The processing of all payments.
(c) Enforcement procedures.
(d) Administrative and legal costs.
(e) Data exchange.
(f) Transfer and payment of funds.
(g) Termination of the agreement by either party.
(h) Any additional provisions as appropriate.
History:
Add. 1996, Act 478, Eff. Jan. 1, 1996
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-1 - Chapter 1 General Provisions (141.501...141.509.amended) › Section 141.509.amended - Administration, Enforcement, and Collection of City Income Tax by Department of Treasury; Agreement; Disposition of Amounts Collected; Provisions.

***** 141.509.amended THIS AMENDED SECTION IS EFFECTIVE 91 DAYS AFTER ADJOURNMENT OF THE 2023 REGULAR SESSION SINE DIE *****
141.509.amended Administration, enforcement, and collection of city income tax by department of treasury; agreement; disposition of amounts collected; provisions.
Sec. 9.
(1) A city that imposes a city income tax pursuant to this act may enter into an agreement with the department of treasury under which the department of treasury shall administer, enforce, and collect the city income tax on behalf of the city.
(2) City income taxes, interest, penalties, and collection fees collected under an agreement entered into pursuant to subsection (1) shall be kept in the city income tax trust fund and shall be paid to the city, except that an amount of the taxes collected as determined in the agreement may be retained by the department of treasury to cover the cost of collection and administration and that amount shall be deposited into the state general fund. The department of treasury shall not charge to or collect from a taxpayer any amount not otherwise authorized by law in conjunction with the collection of city income tax pursuant to an agreement entered into pursuant to this section.
(3) If the city enters into an agreement under subsection (1), the agreement shall include provisions that relate to all of the following:
(a) The development of and distribution of forms required by the agreement and the ordinance under chapter 2.
(b) The processing of all payments.
(c) Enforcement procedures.
(d) Administrative and legal costs.
(e) Data exchange.
(f) Transfer and payment of funds.
(g) Termination of the agreement by either party.
(h) Any additional provisions as appropriate.
History:
Add. 1996, Act 478, Eff. Jan. 1, 1996 ;-- Am. 2023, Act 195, Eff. (sine die)
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.601 - Uniform City Income Tax Ordinance; Short Title.

141.601 Uniform city income tax ordinance; short title.
Sec. 1.
This ordinance shall be known and may be cited as the "uniform city income tax ordinance".
History:
1964, Act 284, Imd. Eff. June 12, 1964
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.602 - Uniform City Income Tax Ordinance; Rules of Construction, Definitions.

141.602 Uniform city income tax ordinance; rules of construction, definitions.
Sec. 2.
For the purposes of this ordinance, the words, terms and phrases set forth in sections 3 to 9 and their derivations have the meaning given therein. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular number, and in the singular number include the plural. "Shall" is always mandatory and not merely directory. "May" is always directory.
History:
1964, Act 284, Imd. Eff. June 12, 1964
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.603 - Definitions; a to D.

***** 141.603 THIS SECTION IS AMENDED EFFECTIVE 91 DAYS AFTER ADJOURNMENT OF THE 2023 REGULAR SESSION SINE DIE: See 141.603.amended *****
141.603 Definitions; A to D.
Sec. 3.
(1) "Administrator" means the official designated by the city to administer this ordinance or the duly authorized agent or representative of that official but does not mean the department of treasury.
(2) "Business" means an enterprise, activity, profession, or undertaking of any nature conducted or ordinarily conducted for profit or gain by any person, including the operation of an unrelated business by a charitable, religious, or educational organization.
(3) "Capital gains" and "capital losses" mean those terms as defined for federal income tax purposes.
(4) "Department" means the department of treasury for tax years after the 1996 tax year for which a city has entered into an agreement with the department of treasury pursuant to section 9 of chapter 1. Department includes a duly authorized agent or representative of the department.
History:
1964, Act 284, Imd. Eff. June 12, 1964 ;-- Am. 1996, Act 478, Eff. Jan. 1, 1997
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.603.amended - Definitions; a to D.

***** 141.603.amended THIS AMENDED SECTION IS EFFECTIVE 91 DAYS AFTER ADJOURNMENT OF THE 2023 REGULAR SESSION SINE DIE *****
141.603.amended Definitions; A to D.
Sec. 3.
(1) "Administrator" means the official designated by the city to administer this ordinance or the duly authorized agent or representative of that official but does not mean the department.
(2) "Business" means an enterprise, activity, profession, or undertaking of any nature conducted or ordinarily conducted for profit or gain by any person, including the operation of an unrelated business by a charitable, religious, or educational organization.
(3) "Capital gains" and "capital losses" mean those terms as defined for federal income tax purposes.
(4) "Department" means the department of treasury. Department includes a duly authorized agent or representative of the department.
History:
1964, Act 284, Imd. Eff. June 12, 1964 ;-- Am. 1996, Act 478, Eff. Jan. 1, 1997 ;-- Am. 2023, Act 195, Eff. (sine die)
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.604 - Definitions; C.

141.604 Definitions; C.
Sec. 4.
(1) "City" means the city adopting the ordinance.
(2) "Compensation" means salary, pay or emolument given as compensation or wages for work done or services rendered, in cash or in kind, and includes but is not limited to the following: salaries, wages, bonuses, commissions, fees, tips, incentive payments, severance pay, vacation pay and sick pay.
(3) "Corporation" means a corporation or a joint stock association organized under the laws of the United States, this state, or any other state, territory, or foreign country or dependency.
History:
1964, Act 284, Imd. Eff. June 12, 1964
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.605 - Definitions; D.

141.605 Definitions; D.
Sec. 5.
"Doing business" means the conduct of any activity with the object of gain or benefit, except that it does not include:
(a) The solicitation of orders by a person or his representative in the city for sales of tangible personal property, which orders are sent outside the city for approval or rejection and, if approved, are filled by shipment or delivery from a point outside the city.
(b) The solicitation of orders by a person or his representative in the city in the name of or for the benefit of a prospective customer of a person, if orders by the customer to such person to enable the customer to fill orders resulting from the solicitation are orders described in paragraph (a).
(c) The mere storage of personal property in the city in a warehouse neither owned nor leased by the taxpayer.
History:
1964, Act 284, Imd. Eff. June 12, 1964
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.606 - Definitions; E, F.

141.606 Definitions; E, F.
Sec. 6.
(1) "Employee" means a person from whom an employer is required to withhold for either federal income or federal social security taxes.
(2) "Employer" means an individual, partnership, association, corporation, nonprofit organization, governmental body or unit or agency including the state, or any other entity whether or not taxable under this ordinance, that employs 1 or more persons on a salary, bonus, wage, commission or other basis, whether or not the employer is in a business.
(3) "Federal internal revenue code" means the internal revenue code of the United States in effect on the last day of the taxpayer's tax year.
(4) "Financial institution" means a bank, industrial bank, trust company, building and loan or savings and loan association, credit union, safety and collateral deposit company, regulated investment company as defined in section 851 and the following sections of the federal internal revenue code, under whatever authority organized, and any other association, joint stock company or corporation at least 90% of whose assets consist of intangible personal property and at least 90% of whose gross income consists of dividends or interest or other charges resulting from the use of money or credit.
History:
1964, Act 284, Imd. Eff. June 12, 1964 ;-- Am. 1971, Act 169, Imd. Eff. Dec. 2, 1971
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.607 - Definitions; F to N.

141.607 Definitions; F to N.
Sec. 7.
(1) "Fiscal year" means an accounting period of 12 months ending on any day other than December 31. Only fiscal years accepted by the internal revenue service for federal income tax purposes may be used for city tax purposes.
(2) "Net profits" means the net gain from the operation of a business, profession or enterprise, after provision for all costs and expenses incurred in the conduct thereof, determined on either a cash or accrual method, on the same basis as provided for in the federal internal revenue code for federal income tax purposes, excluding items exempted under this ordinance, but without deduction of federal and city taxes based on income and without deduction of net operating loss carry-over or capital loss carry-over sustained prior to the effective date of this tax, except that net operating losses and capital losses sustained after the effective date of this tax may be carried over to the same extent and on the same basis as under the federal internal revenue code but shall not be carried back to prior years.
History:
1964, Act 284, Imd. Eff. June 12, 1964 ;-- Am. 1971, Act 169, Imd. Eff. Dec. 2, 1971
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.608 - Definitions; N to P.

141.608 Definitions; N to P.
Sec. 8.
(1) "Nonresident" means an individual domiciled outside the city.
(2) "Person" means a natural person, partnership, fiduciary, association, corporation or other entity. When used in any provision imposing a criminal penalty, "person" as applied to an association means the parties or members thereof, and as applied to a corporation, the officers thereof.
(3) "Predominant place of employment" means that city imposing a tax under a uniform city income tax ordinance other than the city of residence, in which the employee estimates he will earn the greatest percentage of his compensation from the employer, which percentage is 25% or more.
History:
1964, Act 284, Imd. Eff. June 12, 1964
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.609 - Definitions; R to T.

141.609 Definitions; R to T.
Sec. 9.
(1) "Resident" means an individual domiciled in the city. "Domicile" means a place where a person has his true, fixed and permanent home and principal establishment, to which, whenever absent therefrom, he intends to return, and domicile continues until another permanent establishment is established. If an individual, during the taxable year, being a resident becomes a nonresident or vice versa, taxable income shall be determined separately for income in each status.
(2) "Taxable year" means the calendar year, or the fiscal year, used as the basis on which net profits and other income subject to tax under this ordinance are to be computed, and in case of a return for a fractional part of a year, the period for which the return is required to be made.
(3) "Taxpayer" means a person required under this ordinance to file a return or to pay a tax.
History:
1964, Act 284, Imd. Eff. June 12, 1964
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.611 - Excise Tax on Incomes; Rates.

141.611 Excise tax on incomes; rates.
Sec. 11.
Subject to the exclusions, adjustments, exemptions, and deductions herein provided, an annual tax of 1% on corporations and resident individuals and of 1/2% on nonresident individuals for general revenue purposes and the purposes provided for in sections 11a and 11b is hereby imposed as an excise on income earned and received on and after the effective date of this ordinance. However, if the governing body of the city adopts a resolution to impose the tax at a lower rate, the tax is hereby imposed at that lower rate. If the tax is imposed at a lower rate, the rate on nonresident individuals shall not exceed 1/2 of the rate on corporations and resident individuals.
History:
1964, Act 284, Imd. Eff. June 12, 1964 ;-- Am. 1992, Act 276, Imd. Eff. Dec. 18, 1992 ;-- Am. 1993, Act 125, Eff. Jan. 1, 1994 ;-- Am. 1995, Act 233, Imd. Eff. Dec. 19, 1995
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.611a - Ordinance, Resolution, or Agreement to Dedicate and Transfer Funds; Purposes; Commencement; Amount; Definitions.

141.611a Ordinance, resolution, or agreement to dedicate and transfer funds; purposes; commencement; amount; definitions.
Sec. 11a.
(1) For the 1993 tax year and each tax year after 1993, a city that is a qualified local unit of government, as defined by the federal facility development act, may adopt an ordinance or resolution, or may enter into an agreement with a qualified local unit of government other than the city, to dedicate and transfer funds in an amount determined pursuant to subsection (3) solely and to the extent necessary for the purposes authorized for use of the federal facility development fund created by the federal facility development act.
(2) When a city adopts an ordinance or resolution or enters into an agreement pursuant to subsection (1), the use or transfer of any funds dedicated or to be transferred shall commence and continue until any bonds, obligations, or other evidences of indebtedness for which the funds are pledged are fully paid.
(3) The amount dedicated or to be transferred by a city each year pursuant to subsection (1) shall equal the amount of withheld tax remitted by a qualified employer pursuant to section 60, as reconciled pursuant to section 61, for all qualified employees.
(4) As used in this section:
(a) "Qualified employee" means a person who meets both of the following criteria:
(i) Is employed by a qualified employer.
(ii) His or her principal workplace is a qualified facility.
(b) "Qualified employer" means the federal government.
(c) "Qualified facility" and "qualified local unit of government" mean those terms as defined in the federal facility development act.
History:
Add. 1992, Act 276, Imd. Eff. Dec. 18, 1992
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.611b - City as Qualified Local Unit of Government; Dedication and Transfer of Funds; Purposes; Use of Federal Data Facility Fund; Amount; Definitions.

141.611b City as qualified local unit of government; dedication and transfer of funds; purposes; use of federal data facility fund; amount; definitions.
Sec. 11b.
(1) A city that is a qualified local unit of government, as defined by the federal data facility act, may adopt an ordinance or resolution, or may enter into an agreement with a qualified local unit of government other than the city, to dedicate and transfer funds in the 1994 through 2003 tax years in an amount determined pursuant to subsection (3) solely and to the extent necessary for the purposes authorized for the use of the federal data facility fund created by the federal data facility act.
(2) If a city adopts an ordinance or resolution or enters into an agreement pursuant to subsection (1), the use or transfer of any funds dedicated or to be transferred shall commence and continue until any bonds, obligations, or other evidences of indebtedness for which the funds are pledged are fully paid or the authorized purpose is otherwise completed but not after the 2003 tax year.
(3) The amount dedicated or to be transferred by a city each year pursuant to subsection (1) shall equal the amount of withheld tax remitted by a qualified employer pursuant to section 60, as reconciled pursuant to section 61, for all qualified employees.
(4) As used in this section:
(a) "Qualified employee" means a person who meets both of the following criteria:
(i) Is employed by a qualified employer.
(ii) His or her principal workplace is a qualified facility.
(b) "Qualified employer" means the federal government.
(c) "Qualified facility" and "qualified local unit of government" mean those terms as defined in the federal data facility act.
History:
Add. 1993, Act 125, Eff. Jan. 1, 1994
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.612 - Excise Tax on Incomes; Application to Resident Individuals.

141.612 Excise tax on incomes; application to resident individuals.
Sec. 12.
The tax shall apply on the following types of income of a resident individual to the same extent and on the same basis that the income is subject to taxation under the federal internal revenue code:
(a) On a salary, bonus, wage, commission and other compensation.
(b) On a distributive share of the net profits of a resident owner of an unincorporated business, profession, enterprise, undertaking or other activity, as a result of work done, services rendered and other business activities wherever conducted.
(c) On dividends, interest, capital gains less capital losses, income from estates and trusts and net profits from rentals of real and tangible personal property.
(d) On other income of a resident individual.
History:
1964, Act 284, Imd. Eff. June 12, 1964
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.613 - Types of Nonresident Income to Which Tax Applicable; Extent and Basis of Tax.

141.613 Types of nonresident income to which tax applicable; extent and basis of tax.
Sec. 13.
The tax shall apply on the following types of income of a nonresident individual to the same extent and on the same basis that the income is subject to taxation under the federal internal revenue code:
(a) On a salary, bonus, wage, commission, and other compensation for services rendered as an employee for work done or services performed in the city. Income that the nonresident taxpayer receives as the result of disability and after exhausting all vacation pay, holiday pay, and sick pay is not compensation for services rendered as an employee for work done or services performed in the city. Vacation pay, holiday pay, sick pay and a bonus paid by the employer are considered to have the same tax situs as the work assignment or work location and are taxable on the same ratio as the normal earnings of the employee for work actually done or services actually performed.
(b) On a distributive share of the net profits of a nonresident owner of an unincorporated business, profession, enterprise, undertaking, or other activity, as a result of work done, services rendered, and other business activities conducted in the city.
(c) On capital gains less capital losses from sales of, and on the net profits from rentals of, real and tangible personal property, if the capital gains arise from property located in the city.
History:
1964, Act 284, Imd. Eff. June 12, 1964 ;-- Am. 1988, Act 216, Imd. Eff. July 1, 1988
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.614 - Excise Tax on Incomes; Taxable Net Profits of a Corporation, Definition.

141.614 Excise tax on incomes; taxable net profits of a corporation, definition.
Sec. 14.
The tax shall apply on the taxable net profits of a corporation doing business in the city, being levied on such part of the taxable net profits as is earned by the corporation as a result of work done, services rendered and other business activities conducted in the city, as determined in accordance with this ordinance. "Taxable net profits of a corporation" means federal taxable income as defined in section 63 of the federal internal revenue code but taking into consideration all exclusions and adjustments provided in this ordinance. No deduction shall be allowed for:
(a) Net operating losses and net capital losses sustained prior to the effective date of the tax.
(b) The city income tax imposed by this ordinance.
A corporation may deduct income, war profits and excess profits taxes, imposed by a foreign country or possession of the United States, allocable to income included in taxable net income, any part of which would be allowable as a deduction in determining federal taxable income under the applicable provisions of the federal internal revenue code.
History:
1964, Act 284, Imd. Eff. June 12, 1964
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.615 - Excise Tax on Incomes; Unincorporated Business, Profession; Sole Proprietorship, Partnership.

141.615 Excise tax on incomes; unincorporated business, profession; sole proprietorship, partnership.
Sec. 15.
An unincorporated business, profession or other activity conducted by 1 or more persons subject to the tax as either a sole proprietorship or partnership shall not be taxable as such. The persons carrying on the unincorporated business, profession or other activity are liable for income tax only in their separate and individual capacities and on the following bases:
(a) A resident proprietor or partner is taxable upon his entire distributive share of the net profits of the activity regardless of where the activity is conducted.
(b) A nonresident proprietor or partner is taxable only upon his distributive share of the portion of the net profits of the activity which is attributable to the city under the allocation methods provided in this ordinance.
(c) In the hands of a proprietor or partner of an unincorporated activity, the character of any item of income taxable under this ordinance is determined as if such item were realized by the individual proprietor or partner directly from the source from which it is realized by the unincorporated activity. In computing his taxable income for a taxable year, a person who is required to file a return shall include therein his taxable distributive share of the net profits for any partnership year ending within or with his taxable year.
History:
1964, Act 284, Imd. Eff. June 12, 1964
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.616 - Unincorporated Business, Profession, or Activity; Return.

141.616 Unincorporated business, profession, or activity; return.
Sec. 16.
An unincorporated business, profession or other activity owned by 2 or more persons shall file an annual information return setting forth:
(a) The entire net profit for the period covered by the return and the taxable portion of the net profit attributable to the city.
(b) The names and addresses of the owners of the unincorporated activity and each owner's taxable distributive share of the total net profit and each nonresident owner's share of the taxable net profit attributable to the city.
History:
1964, Act 284, Imd. Eff. June 12, 1964
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.617 - Unincorporated Business, Profession, or Activity; Election to Pay Tax.

141.617 Unincorporated business, profession, or activity; election to pay tax.
Sec. 17.
At the election of an unincorporated business, profession or other activity, the entity, on behalf of the owners, may compute and pay the tax due with respect to each owner's share of the net profit of the activity after giving effect to exemptions to which each owner is entitled. This election is available to all unincorporated business entities having 2 or more owners regardless of the residence of the owners. The tax thus paid by the entity shall constitute all tax due with respect to each owner's distributive share of the net profits of the unincorporated business, profession or other activity.
If the unincorporated business, profession or other activity elects under this section to file a return and pay the tax on behalf of its owners, the election and filing are deemed to meet the requirements of this ordinance for the filing of a return for each owner who has no other income subject to the tax. However, a return is required from any such owner having taxable income other than his distributive share of the net profits of the entity. In such case the entire income subject to the tax shall be included in the return and credit taken thereon for the tax paid in his behalf by the unincorporated activity.
If the unincorporated business, profession or other activity elects to pay the tax on behalf of the owners, then the unincorporated business, profession or other activity assumes the status of a taxpayer and is liable to interest and penalty if payment is not made by the due date, in accordance with the calendar or fiscal year used by the unincorporated business, profession or other activity.
History:
1964, Act 284, Imd. Eff. June 12, 1964
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.618 - Partial Business Activity in City; Apportionment of Net Profit.

141.618 Partial business activity in city; apportionment of net profit.
Sec. 18.
When the entire net profit of a business subject to the tax is not derived from business activities exclusively within the city, the portion of the entire net profit, earned as a result of work done, services rendered or other business activity conducted in the city, shall be determined under either section 19, sections 20 to 24, or section 25.
History:
1964, Act 284, Imd. Eff. June 12, 1964 ;-- Am. 1969, Act 42, Imd. Eff. July 17, 1969
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.619 - Partial Business Activity in City; Separate Accounting Method.

141.619 Partial business activity in city; separate accounting method.
Sec. 19.
The taxpayer may petition for and the administrator may grant approval of, or the administrator may require, the separate accounting method. If such method is petitioned for the administrator may require a statement, explaining the manner in which the apportionment will be made, in sufficient detail to determine whether the net profits attributable to the city will be apportioned with reasonable accuracy.
History:
1964, Act 284, Imd. Eff. June 12, 1964 ;-- Am. 1969, Act 42, Imd. Eff. July 17, 1969
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.620 - Partial Business Activity in City; Business Allocation Percentage Method.

141.620 Partial business activity in city; business allocation percentage method.
Sec. 20.
The business allocation percentage method shall be used if such taxpayer is not granted approval to use the separate accounting method of allocation. The entire net profits of such taxpayer earned as a result of work done, services rendered or other business activity conducted in the city shall be ascertained by determining the total "in-city" percentages of property, payroll and sales. "In-city" percentages of property, payrolls and sales, separately computed, shall be determined in accordance with sections 21 to 24.
History:
1964, Act 284, Imd. Eff. June 12, 1964 ;-- Am. 1969, Act 42, Imd. Eff. July 17, 1969
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.621 - Partial Business Activity in City; Percentage of Average Net Book Value; Gross Rental Value of Real Property.

141.621 Partial business activity in city; percentage of average net book value; gross rental value of real property.
Sec. 21.
First, the taxpayer shall ascertain the percentage which the average net book value, of the tangible personal property owned and the real property, including leasehold improvements, owned or used by it in the business and situated within the city during the taxable period, is of the average net book value of all of such property, including leasehold improvements, owned or used by the taxpayer in the business during the same period wherever situated. Real property shall include real property rented or leased by the taxpayer and the value of such property shall be deemed to be 8 times the annual gross rental thereon. "Gross rental of real property" means the actual sum of money or other consideration payable, directly or indirectly, by the taxpayer for the use or possession of real property and includes but is not limited to:
(a) An amount payable for the use or possession of real property or any part thereof, whether designated as a fixed sum of money or as a percentage of sales, profits or otherwise.
(b) An amount payable as additional rent or in lieu of rent such as interest, taxes, insurance, repairs or other amount required to be paid by the terms of a lease or other arrangement.
History:
1964, Act 284, Imd. Eff. June 12, 1964
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.622 - Partial Business Activity in City; Percentage of Compensation Paid Employees.

141.622 Partial business activity in city; percentage of compensation paid employees.
Sec. 22.
Second, the taxpayer shall ascertain the percentage which the total compensation paid to employees for work done or for services performed within the city is of the total compensation paid to all the taxpayer's employees within and without the city during the period covered by the return. For allocation purposes, compensation shall be computed on the cash or accrual basis in accordance with the method used in computing the entire net income of the taxpayer.
If an employee performs services within and without the city, the following examples are not all inclusive but may serve as a guide for determining the amount to be treated as compensation for services performed within the city:
(a) In the case of an employee compensated on a time basis, the proportion of the total amount received by him which his working time within the city is of his total working time.
(b) In the case of an employee compensated directly on the volume of business secured by him, such as a salesman on a commission basis, the amount received by him for business attributable to his efforts in the city.
(c) In the case of an employee compensated on other results achieved, the proportion of the total compensation received which the value of his services within the city bears to the value of all his services.
History:
1964, Act 284, Imd. Eff. June 12, 1964
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.623 - Partial Business Activity in City; Percentage of Gross Revenue.

141.623 Partial business activity in city; percentage of gross revenue.
Sec. 23.
Third, the taxpayer shall ascertain the percentage which the gross revenue of the taxpayer derived from sales made and services rendered in the city is of the total gross revenue from sales and services wherever made or rendered during the period covered by the return.
(1) For the purposes of this section, "sales made in the city" means all sales where the goods, merchandise or property is received in the city by the purchaser, or a person or firm designated by him. In the case of delivery of goods in the city to a common or private carrier or by other means of transportation, the place at which the delivery has been completed is considered as the place at which the goods are received by the purchaser.
The following examples are not all inclusive but may serve as a guide for determining sales made in the city:
(a) Sales to a customer in the city with shipments to a destination within the city from a location in the city or an out-of-city location are considered sales made in the city.
(b) Sales to a customer in the city with shipments to a destination within the city directly from the taxpayer's in-city supplier or out-of-city supplier are considered sales made in the city.
(c) Sales to a customer in the city with shipments directly to the customer at his regularly maintained and established out-of-city location are considered out-of-city sales.
(d) Sales to an out-of-city customer with shipments or deliveries to the customer's location within the city are considered sales made in the city.
(e) Sales to an out-of-city customer with shipments to an out-of-city destination are considered out-of-city sales.
(2) In the case of public utilities, or businesses furnishing transportation services, "gross revenue" for the purposes of this section may be measured by such means as operating revenues, vehicle miles, revenue miles, passenger miles, ton miles, tonnage, or such other method as shall reasonably measure the proportion of gross revenue obtained in the city by such business.
(3) In case the business of the taxpayer involves substantial business activities other than sales of goods and services such other method or methods of allocation shall be employed as shall reasonably measure the proportion of gross revenue obtained in the city by such business.
History:
1964, Act 284, Imd. Eff. June 12, 1964
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.624 - Partial Business Activity in City; Business Allocation Percentage.

141.624 Partial business activity in city; business allocation percentage.
Sec. 24.
Fourth, the taxpayer shall add the percentages determined in accordance with sections 21, 22 and 23 and divide the total by 3 and the result so obtained is the business allocation percentage. In determining this percentage, a factor shall be excluded from the computation only when the factor does not exist anywhere insofar as the taxpayer's business operation is concerned and, in such case, the total of the percentages shall be divided by the number of factors actually used. The business allocation percentage shall be applied to the entire net profits, wherever derived, of the taxpayer subject to the tax to determine the net profits allocable to the city.
History:
1964, Act 284, Imd. Eff. June 12, 1964 ;-- Am. 1969, Act 42, Imd. Eff. July 17, 1969
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.625 - Partial Business Activity in City; Substitute Methods.

141.625 Partial business activity in city; substitute methods.
Sec. 25.
An alternative method of accounting shall be used if the taxpayer or the administrator demonstrates that the net profits of the taxpayer allocable to the city cannot be justly and equitably determined under the separate accounting method or the business allocation percentage method, or if undue expense to the taxpayer would result from complying therewith because of the taxpayer's manner of operations and methods of accounting. In such case the administrator, upon application of the taxpayer or upon his own initiative, may approve or specify factors or methods of determination as will effect a just, nondiscriminatory and reasonable result. Application to the administrator to substitute other factors in the formula or to use a different method to allocate net profits shall be made in writing and state the specific grounds on which the substitution of factors or use of a different method is requested and the relief sought. No specific form need be followed in making the application. Once a taxpayer has filed under a substitute method, he shall continue so to file until given permission by the administrator to change.
History:
1964, Act 284, Imd. Eff. June 12, 1964
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.626 - Capital Gains and Losses; Determination.

141.626 Capital gains and losses; determination.
Sec. 26.
(1) Capital gains and capital losses, other than gains and losses on securities issued by the government of the United States, shall be included in income only to the extent of that portion of the gains or losses which occur after the effective date of this ordinance. In determining the amount of gain or loss, the taxpayer may use net proceeds from the sale or exchange less fair market value as of the effective date of this ordinance. The fair market value of property shall be determined by an appraisal or similar reliable evidence. The fair market value of a security shall be the last quoted price on the last business day prior to the effective date. For a security traded over the counter the last quoted price shall be the last bid price on the last business day prior to the effective date. The taxpayer may determine the gain or loss on a transaction in the same manner as for federal income tax purposes taking into account only that portion thereof which occurs after the effective date. The portion of that gain or loss includible in computing taxable income will be the same proportion of the total gain or loss as the period of time the property was held after the effective date of the ordinance bears to the total time the property was held. In any city adopting this ordinance which had a valid local income tax ordinance in effect on January 1, 1964, capital gains and losses shall be included to the extent of that portion of such gains or losses which occur after the effective date of the original city income tax ordinance.
(2) If capital losses exceed capital gains in a taxable year, the unused portion may be utilized to the same extent and on the same basis as under the federal internal revenue code.
History:
1964, Act 284, Imd. Eff. June 12, 1964
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.627 - Estates or Trusts, Deemed Nonresidents; Definitions.

141.627 Estates or trusts, deemed nonresidents; definitions.
Sec. 27.
An estate or trust is not subject to tax under this ordinance, except that it shall be treated as a nonresident individual for purposes of section 11 of this ordinance to the extent income of the estate or trust described in section 13 is not includible in the return of a resident individual as "income from estates and trusts". A resident individual shall include "income from estates and trusts" in his income subject to tax under this ordinance without regard to the situs of the estate or trust. For this purpose, an "estate" means the estate of a deceased person during the period of administration or settlement and a "trust" means an inter vivos or testamentary trust created by an individual for the benefit of 1 or more persons.
History:
1964, Act 284, Imd. Eff. June 12, 1964 ;-- Am. 1965, Act 10, Imd. Eff. Apr. 18, 1965
2023 Michigan Compiled Laws › Chapter 141 - Municipal Financing › Act 284 of 1964 - City Income Tax Act (141.501 - 141.787) › 284-1964-2 - Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699) › Section 141.628 - Income From Estates and Trusts.

141.628 Income from estates and trusts.
Sec. 28.
(1) "Income from estates" means "income" as defined in section 643 (b) of the federal internal revenue code, properly paid, credited or distributed but not in excess of the resident individual's share of the distributable net income of the estate decreased by the amount of depreciation or depletion allowed the resident individual as a deduction under section 642 of the federal internal revenue code. The exceptions hereinafter set forth with respect to trusts are also applicable to income from estates. "Income from trusts" means the amount of "income" as defined in section 643 (b) of the federal internal revenue code, distributed or required to be distributed under sections 652 (a) or 662 (a) (1) of the federal internal revenue code, decreased by the amount of depreciation or depletion allowed the resident individual as a deduction by section 642 of the federal internal revenue code, with the following exceptions:
(a) Dividends on stock of state and national banks and trust companies.
(b) Interest from obligations of the United States, the states or subordinate units of government of the states.
(2) Income received by a resident individual from a fiduciary shall retain the character it held in the hands of the fiduciary. With respect to trusts where the income is taxed to the grantor or some other person under subpart E of subchapter J of the federal internal revenue code, the grantor or other person shall include in his return all items of income and deductions allowed by this ordinance.
(3) An individual shall include "income from estates and trusts" in his return in the same year as provided in the federal internal revenue code with respect to distributions of income from estates and trusts. The amount of income included in the return for the first tax year of a resident individual, with respect to estates and trusts, shall be computed as though the tax year of the estate or trust for federal income tax purposes began on the effective date of this ordinance and ended with the end of the tax year of the estate or trust for federal income tax purposes which ends next following the effective date.
History:
1964, Act 284, Imd. Eff. June 12, 1964