Bill Text: MI HB6105 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Michigan business tax; insurance companies; tax rate on gross direct premiums; reduce. Amends sec. 235 of 2007 PA 36 (MCL 208.1235). TIE BAR WITH: HB 5249'09, HB 6103'10, HB 6104'10, HB 6106'10, HB 6107'10, HB 6108'10, HB 6109'10, HB 6110'10, HB 6111'10, HB 6112'10, HB 6113'10, HB 6114'10, HB 6115'10, HB 6116'10, HB 6117'10, HB 6118'10, HB 6119'10

Spectrum: Partisan Bill (Republican 18-0)

Status: (Introduced - Dead) 2010-05-05 - Printed Bill Filed 05/05/2010 [HB6105 Detail]

Download: Michigan-2009-HB6105-Introduced.html

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HOUSE BILL No. 6105

 

May 4, 2010, Introduced by Reps. Calley, Amash, McMillin, Genetski, Agema, DeShazor, Paul Scott, Green, Meekhof, Meltzer, Walsh, Daley, Bolger, Booher, Crawford, Lund, Rogers and Kowall and referred to the Committee on Tax Policy.

 

     A bill to amend 2007 PA 36, entitled

 

"Michigan business tax act,"

 

by amending section 235 (MCL 208.1235), as amended by 2008 PA 30.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 235. (1) Except as otherwise provided under subsection

 

(4), each insurance company shall pay a tax determined under this

 

chapter.

 

     (2) The For tax years that begin after December 31, 2007 and

 

before January 1, 2011, the tax imposed by this chapter on each

 

insurance company shall be a tax equal to 1.25% of gross direct

 

premiums written on property or risk located or residing in this

 

state. For tax years that begin after December 31, 2010, the tax

 

imposed by this chapter on each insurance company shall be a tax

 

equal to 1.10% of gross direct premiums written on property or risk

 

located or residing in this state. Direct premiums do not include

 

any of the following:

 

     (a) Premiums on policies not taken.

 

     (b) Returned premiums on canceled policies.

 

     (c) Receipts from the sale of annuities.

 

     (d) Receipts on reinsurance premiums if the tax has been paid

 

on the original premiums.

 

     (e) The first $190,000,000.00 of disability insurance premiums

 

written in this state, other than credit insurance and disability

 

income insurance premiums, of each insurance company subject to tax

 

under this chapter. This exemption shall be reduced by $2.00 for

 

each $1.00 by which the insurance company's gross direct premiums

 

from insurance carrier services in this state and outside this

 

state exceed $280,000,000.00.

 

     (3) The tax calculated under this chapter is in lieu of all

 

other privilege or franchise fees or taxes imposed by this act or

 

any other law of this state, except taxes on real and personal

 

property, taxes collected under the general sales tax act, 1933 PA

 

167, MCL 205.1 to 205.78, and taxes collected under the use tax

 

act, 1937 PA 94, MCL 205.91 to 205.111, and except as otherwise

 

provided in the insurance code of 1956, 1956 PA 218, MCL 500.100 to

 

500.8302.

 

     (4) The tax imposed and levied under this act does not apply

 

to an insurance company authorized under chapter 46 or 47 of the

 

insurance code of 1956, 1956 PA 218, MCL 500.4601 to 500.4673, and

 

MCL 500.4701 to 500.4747.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 95th Legislature are

 

enacted into law:

 

     (a) House Bill No. 5249.

 

     (b) Senate Bill No.____ or House Bill No. 6104(request no.

 

04275'09).

 

     (c) Senate Bill No.____ or House Bill No. 6103(request no.

 

05669'09).

 

     (d) Senate Bill No.____ or House Bill No. 6106(request no.

 

05671'09).

 

     (e) Senate Bill No.____ or House Bill No. 6107(request no.

 

05672'09).

 

     (f) Senate Bill No.____ or House Bill No. 6112(request no.

 

05673'09).

 

     (g) Senate Bill No.____ or House Bill No. 6113(request no.

 

05675'09*).

 

     (h) Senate Bill No.____ or House Bill No. 6109(request no.

 

05676'09).

 

     (i) Senate Bill No.____ or House Bill No. 6110(request no.

 

05677'09).

 

     (j) Senate Bill No.____ or House Bill No. 6116(request no.

 

05678'09).

 

     (k) Senate Bill No.____ or House Bill No. 6114(request no.

 

05679'09).

 

     (l) Senate Bill No.____ or House Bill No. 6117(request no.

 

05680'09).

 

     (m) Senate Bill No.____ or House Bill No. 6108(request no.

 

05681'09).

 

     (n) Senate Bill No.____ or House Bill No. 6119(request no.

 

05930'10).

 

     (o) Senate Bill No.____ or House Bill No. 6111(request no.

 

05931'10).

 

     (p) Senate Bill No.____ or House Bill No. 6115(request no.

 

05932'10).

 

     (q) Senate Bill No.____ or House Bill No. 6118(request no.

 

05933'10).