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2008 Senate Bill 1038: Revise gross receipts definition
Public Act 433 of 2008
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- Introduced by Sen. Nancy Cassis (R) on January 22, 2008, to exclude from the definition of gross receipts subject to the Michigan Business Tax revenue from federal or Michigan government bond interest; certain corporate "treasury functions; any tax, fee, surcharge or bottle deposit amounts a firm is required to collect; dividends and royalties received from a foreign operating entity; and more.
- Referred to the Senate Finance Committee on January 22, 2008, which adopted versions of bills in the package that do not exclude revenue from "treasury functions" from MBT liability, and adds bottle deposits collected by a firm from being included as taxable gross receipts.
- Reported in the Senate on February 5, 2008, with the recommendation that the substitute (S-2) be adopted and that the bill then pass.
- Substitute offered in the Senate on February 14, 2008, to replace the previous version of the bill with one that does not exempt "treasury function" revenue, and amend it to also exclude certain Medicaid nursing home reimbursements, business equipment lease expenses, license fees, sale of fully depreciated property, and more. The substitute passed by voice vote in the Senate on February 14, 2008.
- Referred to the Senate Finance Committee on January 22, 2008, which adopted versions of bills in the package that do not exclude revenue from "treasury functions" from MBT liability, and adds bottle deposits collected by a firm from being included as taxable gross receipts.
- Passed 21 to 17 in the Senate on February 14, 2008, to exclude from the definition of gross receipts subject to the Michigan Business Tax revenue from federal or Michigan government bond interest; any tax, fee, surcharge or bottle deposit amounts a firm is required to collect; dividends and royalties received from a foreign operating entity; certain Medicaid nursing home reimbursements; certain business equipment lease expenses; state license fees; sale of fully depreciated property; and more.
Who Voted "Yes" and Who Voted "No" - Received in the House on February 14, 2008.
- Referred to the House Tax Policy Committee on February 14, 2008.
- Reported in the House on June 27, 2008, with the recommendation that the substitute (H-3)* be adopted and that the bill then pass.
- Substitute offered in the House on June 28, 2008, to replace the previous version of the bill with one that adds additional gross reciepts exceptions and makes other changes. The substitute passed by voice vote in the House on June 28, 2008.
- Substitute offered by Rep. Matthew Gillard (D) on June 28, 2008, to replace the previous version of the bill with one that adds additional gross reciepts exceptions and tie-bars it to House Bills 4301 and 4628, meaning this bill cannot become law unless those ones do also. Those are Democratic-sponsored bills expanding the definition of "disabled" in the no-fault insurance law, and making it easier for unions to take PAC contributions from workers' paychecks without their permission. The substitute passed by voice vote in the House on June 28, 2008.
- Amendment offered by Rep. Steve Bieda (D) on June 28, 2008, to clarify the scope of certain proposed business tax deductions for telecommunications service taxes and utility taxes. The amendment passed by voice vote in the House on June 28, 2008.
- Referred to the House Tax Policy Committee on February 14, 2008.
- Passed 103 to 1 in the House on June 28, 2008, to exclude from the definition of gross receipts subject to the Michigan Business Tax revenue from federal or Michigan government bond interest; any tax, fee, surcharge or bottle deposit amounts a firm is required to collect; dividends and royalties received from a foreign operating entity; certain Medicaid nursing home reimbursements; certain business equipment lease expenses; state license fees; sale of fully depreciated property; and more. The House "tie-barred" this to House Bills 4301 and 4628, meaning this bill cannot become law unless those ones do also. Those are Democratic-sponsored bills expanding the definition of "disabled" in the no-fault insurance law, and making it easier for unions to take PAC contributions from workers' paychecks without their permission.
Who Voted "Yes" and Who Voted "No" - Received in the Senate on October 2, 2008.
- Substitute offered in the Senate on October 2, 2008, to replace the previous version of the bill with one that adds additional gross reciepts exceptions, and removes the tie-bars added by the House to House Bills 4301 and 4628. Among the exceptions included in the bill are revenue from federal or Michigan government bond interest; any tax, fee, surcharge or bottle deposit amounts a firm is required to collect; dividends and royalties received from a foreign operating entity; certain Medicaid nursing home reimbursements; certain business equipment lease expenses; state license fees; sale of fully depreciated property; certain commercial lease income; certain insurance commissions; certain "media property" sales; certain securities dealer and broker or hedging activity revenue; and more. The substitute passed 21 to 17 in the Senate on October 2, 2008.
Who Voted "Yes" and Who Voted "No"
- Amendment offered by Sen. Mark Jansen (R) on October 2, 2008, to revise the gross receipts definition to exclude certain amounts received from transactions involving a media (broadcast) property. The amendment passed 28 to 10 in the Senate on October 2, 2008.
Who Voted "Yes" and Who Voted "No"
- Amendment offered by Sen. Mark Jansen (R) on October 2, 2008, to exempt from taxable gross receipts certain interest income received by a "federally chartered farm credit union" (Greenstone Finance Co.) which is used to cover it's cost of making loans. The amendment passed 38 to 0 in the Senate on October 2, 2008.
Who Voted "Yes" and Who Voted "No"
- Amendment offered by Sen. Mark Schauer (D) on October 2, 2008, to tie-bar the bill to House Bills 4301 and 4628, meaning this bill cannot become law unless those ones do also. Those are Democratic-sponsored bills expanding the definition of "disabled" in the no-fault insurance law, and making it easier for unions to take PAC contributions from workers' paychecks without their permission. The amendment failed 17 to 21 in the Senate on October 2, 2008.
Who Voted "Yes" and Who Voted "No"
- Substitute offered in the Senate on October 2, 2008, to replace the previous version of the bill with one that adds additional gross reciepts exceptions, and removes the tie-bars added by the House to House Bills 4301 and 4628. Among the exceptions included in the bill are revenue from federal or Michigan government bond interest; any tax, fee, surcharge or bottle deposit amounts a firm is required to collect; dividends and royalties received from a foreign operating entity; certain Medicaid nursing home reimbursements; certain business equipment lease expenses; state license fees; sale of fully depreciated property; certain commercial lease income; certain insurance commissions; certain "media property" sales; certain securities dealer and broker or hedging activity revenue; and more. The substitute passed 21 to 17 in the Senate on October 2, 2008.
- Passed 27 to 11 in the Senate on October 2, 2008, to exclude revenue from various business activities specified in the bill from the definition of gross receipts subject to the Michigan Business Tax.
Who Voted "Yes" and Who Voted "No" - Motion in the Senate on October 2, 2008, to give the bill immediate effect. The motion passed 26 to 11 in the Senate on October 2, 2008.
Who Voted "Yes" and Who Voted "No" - Received in the House on October 15, 2008.
- Substitute offered by Rep. Steve Bieda (D) on December 19, 2008, to replace the previous version of the bill with one that phases in the proposed tax changes over five years. The substitute passed by voice vote in the House on December 19, 2008.
- Amendment offered by Rep. Kathy Angerer (D) on December 19, 2008, to tie-bar the bill to House Bill 4257 and Senate Bill 1052, meaning this bill cannot become law unless those ones do also. HB 4257 expands homestead property tax credit eligibility for certain individuals and SB 1052 revises a certain Michigan Business Tax credit in a manner that primarily benefits Consumers Energy and Detroit Edison power companies. The amendment passed by voice vote in the House on December 19, 2008.
- Amendment offered by Rep. Kathy Angerer (D) on December 19, 2008, to exclude airport excise tax collections from the tax base of the company that operates the Metro Airport parking facilities. The amendment passed by voice vote in the House on December 19, 2008.
- Passed 93 to 0 in the House on December 19, 2008, to exclude revenue from various business activities specified in the bill from the definition of gross receipts subject to the Michigan Business Tax. Among other things the bill phases out the inclusion of sales and various excise taxes collected by a business from its business tax base. See also Senate Bill 1052.
Who Voted "Yes" and Who Voted "No" - Received in the Senate on December 19, 2008, to exclude revenue from various business activities specified in the bill from the definition of gross receipts subject to the Michigan Business Tax. Among other things the bill phases out the inclusion of sales and various excise taxes collected by a business from its business tax base. See also Senate Bill 1052. Passed 31 to 0 in the Senate on December 19, 2008.
Who Voted "Yes" and Who Voted "No" - Received in the House on December 19, 2008, to exclude revenue from various business activities specified in the bill from the definition of gross receipts subject to the Michigan Business Tax. Among other things the bill phases out the inclusion of sales and various excise taxes collected by a business from its business tax base. Passed 85 to 0 in the House on December 19, 2008.
Who Voted "Yes" and Who Voted "No" - Signed by Gov. Jennifer Granholm on January 9, 2009.
Most Recent Comments
1) "journal statement" by Admin003 on October 3, 2008Senators Prusi, Cherry, Brater, Clark-Coleman, Scott, Whitmer and Basham, under their constitutional right of protest (Art. 4, Sec. 18), protested against concurring in the House substitute, as substituted, for Senate Bill No. 1038.
Senator Prusi moved that the statement he made during the discussion of the bill be printed as his reasons for voting “no.”
The motion prevailed.
Senator Prusi’s statement, in which Senators Cherry, Brater, Clark-Coleman, Scott, Whitmer and Basham, concurred, is as follows:
The reason I voted “no” and the reason I will vote “no” on an amended substitute is that still to my satisfaction has never been offered the total cost of what we are doing here. Certainly, I don’t want to stand in the way of Michigan business and job providers, but I certainly don’t want to disadvantage the people who have come to depend on the services that the state provides. I think until we have uncovered the great mystery of how much money we are actually talking about here today and where it is going to impact our budget deliberations as we go forward next year, I cannot in good conscience support legislation like this.
I have offered up and I have talked about it and we have indicated that, certainly, when tax policy needs to be amended and changes need to be done, there are certain things that we would be willing to participate in and eventually hope to get behind and support. But in the rushed and shoot-from-the-hip manner that we continue to implement tax policy here in the Senate Chamber, I cannot in good conscience offer up any support for measures such as that.
My “no” vote on this prior vote and subsequent vote on this substitution are predicated on the lack of information detailing exactly what this is going to cost and where are we going to find the savings that have to be made as a result.
Reply
Senator Prusi, under his constitutional right of protest (Art. 4, Sec. 18), protested against the passage of Senate Bill No. 1038 and moved that the statement he made during the discussion of the bill be printed as his reasons for voting “no.”
The motion prevailed.
Senator Prusi’s statement is as follows:
I believe it is fitting that we are acting here on that glorious holiday of love, Valentine’s Day. All the sweethearts out in the lobby now have their chocolates, diamonds, and furs and exemptions, exclusions, and withholding of taxes. So I guess on Valentine’s Day it is good to show a little love. On this one, the only love I am going to show is to my wife and not to the folks outside who have implored us to do all of these fine gifts on Valentine’s Day.
So I would encourage members to withhold their love, save their love for their actual loved ones, and vote “no” on this bill.
Reply
Introduced in the Senate on January 22, 2008, to exclude from the definition of gross receipts subject to the Michigan Business Tax revenue from federal or Michigan government bond interest; any tax, fee, surcharge or bottle deposit amounts a firm is required to collect; dividends and royalties received from a foreign operating entity; certain Medicaid nursing home reimbursements; certain business equipment lease expenses; state license fees; sale of fully depreciated property; and more
The vote was 21 in favor, 17 opposed and 0 not voting
(Senate Roll Call 52 at Senate Journal 15)
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