2013 Senate Bill 156 / 2014 Public Act 282

Revise MBT detail

Introduced in the Senate

Feb. 6, 2013

Introduced by Sen. Jack Brandenburg (R-11)

To make changes clarifying the intent of a <a href="http://www.michiganvotes.org/2012-SB-1037">2012 law</a> revising the former Michigan Business Tax related to for amounts attributable to the taxpayer due to a discharge of indebtedness, and other factors. Some firms that benefit from selective state tax break/subsidy deals still file under this repealed tax.

Referred to the Committee on Finance

April 9, 2013

Reported without amendment

With the recommendation that the bill pass.

Sept. 24, 2013

Substitute offered

The substitute passed by voice vote

May 14, 2014

Amendment offered by Sen. Jack Brandenburg (R-11)

To replace the previous version of the bill with one that adds additional detail changes to the MBT's treatment of various business transactions and events.

The amendment passed by voice vote

Passed in the Senate 26 to 11 (details)

To make changes clarifying the intent of a <a href="http://www.michiganvotes.org/2012-SB-1037">2012 law</a> revising the former Michigan Business Tax related to for amounts attributable to the taxpayer due to a discharge of indebtedness, and other factors.

Received in the House

May 14, 2014

Referred to the Committee on Tax Policy

June 4, 2014

Reported without amendment

Without amendment and with the recommendation that the bill pass.

Sept. 9, 2014

Substitute offered by Rep. Joseph Haveman (R-90)

To use the bill as a "vehicle" for the purpose described in the House-passed version, related to a recent Supreme Court ruling.

The substitute passed by voice vote

Amendment offered by Rep. Joseph Haveman (R-90)

To clarify a statutory reference in the bill.

The amendment passed by voice vote

Passed in the House 100 to 10 (details)

To clarify the legislative intent of provisions in the Michigan Business Tax, so as to reverse the effect of a recent state Supreme Court ruling (IBM v. Treasury) that reportedly would force the state to refund more than $1 billion to many companies located out of the state. The case involved the interaction of a multistate Tax Compact the state entered in 2006 with provisions of the MBT, which was repealed in 2011 (but is still in effect for certain companies that received subsidies and tax breaks under its provisions). According to the Senate Fiscal Agency, the bill would also reduce the tax liability of certain firms going forward by a significant amount over the next 15 years.

Received in the Senate

Sept. 10, 2014

Passed in the Senate 34 to 3 (details)

Signed by Gov. Rick Snyder

Sept. 11, 2014