Section 208.1503 - Computation of tax for portion of year.
MICHIGAN BUSINESS TAX ACT (EXCERPT)
Act 36 of 2007
208.1503 Computation of tax for portion of year.
Sec. 503.
If a taxpayer's tax year to which this act applies ends before December 31, 2008 or if a taxpayer's first tax year is less than 12 months then a taxpayer subject to this act may elect to compute the tax imposed by this act for the portion of that tax year to which this act applies or that first tax year in accordance with 1 of the following methods:
(a) The tax may be computed as if this act were effective on the first day of the taxpayer's annual accounting period and the amount computed shall be multiplied by a fraction, the numerator of which is the number of months in the taxpayer's first tax year and the denominator of which is the number of months in the taxpayer's annual accounting period.
(b) The tax may be computed by determining the business income tax base and modified gross receipts tax base in the first tax year in accordance with an accounting method satisfactory to the department that reflects the actual business income tax base and modified gross receipts tax base attributable to the period.
History: 2007, Act 36, Eff. Jan. 1, 2008 ;-- Am. 2009, Act 185, Eff. Jan. 1, 2009
Compiler's Notes: Enacting section 1 of Act 36 of 2007 provides:"Enacting section 1. This act takes effect January 1, 2008 and applies to all business activity occurring after December 31, 2007."Enacting section 1 of Act 185 of 2009 provides:"Enacting section 1. This amendatory act is effective for tax years ending after December 31, 2008."
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