Public Act 52 of 2003

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• Introduced by Rep. Barbara Farrah (D) on April 10, 2003, to collect more income tax from non-residents, by expanding the types of income earned by non-residents which are considered "business income," and are therefore subject to Michigan's income tax. This bill is one of many authorizing “revenue enhancements” which Gov. Jennifer Granholm has proposed to close a gap between state spending and expected revenue in the Fiscal Year 2003-2004 budget. The Senate Fiscal Agency estimates the bill would increase income tax collected from taxpayers by some $6 million in FY 2003-04.
  • Referred to the House Tax Policy Committee on April 10, 2003.
  • Reported in the House on April 30, 2003, without amendment and with the recommendation that the bill pass.
  • Amendment offered by Rep. James Koetje (R) on May 1, 2003, to limit the authority of the Department of Treasury to expand the definition of taxable business income earned in Michigan by out-of-state firms. Instead, expansions of the definition beyond those specified in the bill would require legislative approval. The amendment passed 57 to 47 in the House on May 1, 2003.
    Who Voted "Yes" and Who Voted "No"
  • Amendment offered by Rep. Shelley Goodman Taub (R) on May 1, 2003, to require the Department of Treasury to report to the legislature in two years on the impact of the bill on the tax liability of resident and nonresident taxpayers. The amendment passed by voice vote in the House on May 1, 2003.
• Passed 71 to 34 in the House on May 1, 2003.
  Who Voted "Yes" and Who Voted "No"
• Received in the Senate on May 6, 2003.
  • Referred to the Senate Finance Committee on May 6, 2003.
  • Reported in the Senate on June 3, 2003, with the recommendation that the substitute (S-1) be adopted and that the bill then pass.
  • Substitute offered in the Senate on June 4, 2003, to replace the previous version of the bill with one which incorporates technical changes that do not affect the substance of the bill as previously described. The substitute passed by voice vote in the Senate on June 4, 2003.
• Passed 34 to 4 in the Senate on June 5, 2003, to collect more income tax from non-residents, by expanding the types of income earned by non-residents which are considered "business income," and are therefore subject to Michigan's income tax. This bill is one of many authorizing “revenue enhancements” which Gov. Jennifer Granholm has proposed to close a gap between state spending and expected revenue in the Fiscal Year 2003-2004 budget. The Senate Fiscal Agency estimates the bill would increase income tax collected from taxpayers by some $6 million in FY 2003-04.
  Who Voted "Yes" and Who Voted "No"
• Received in the House on June 24, 2003.
  • Amendment offered by Rep. Barbara Farrah (D) on June 24, 2003, to specify that the intention of the bill is only to clarify the definition and scope of business income as originally intended by the legislature, not expand it. The amendment failed by voice vote in the House on June 24, 2003.
• Passed 86 to 20 in the House on June 24, 2003, to concur with the Senate-passed version of the bill.
  Who Voted "Yes" and Who Voted "No"
• Signed by Gov. Jennifer Granholm on July 11, 2003.