The original MBTA limited revenue from the Michigan Business Tax starting in the 2008 state fiscal year through the 2010 state fiscal year. The MBTA specified that half of the excess revenue above the revenue limit would be deposited in the Budget Stabilization Fund and the other half be returned to taxpayers. Significant amendments were made to the revenue limitation provisions.

Amended Section 515 – School Aid Fund Revenue Designation

For the fiscal year 2007-2008 the amount of revenue designated for the school aid fund was increased from $136,000,000 to $341,000,000. For the fiscal year 2008-2009 the amount of revenue designated for the school aid fund was increased from $479,000,000 to $729,000,000.

The excess is deposited into the general fund. For each fiscal year after the 2008-2009 fiscal year, the amount from the previous fiscal year will be adjusted by an amount equal to the growth in the consumer price index.

Amended Section 601 – Revenue Limits

For the 2008 fiscal year, the revenue limit $2,398,000,000 was deleted and replaced by a new computation of fiscal year 2008 base. The fiscal year 2008 base is calculated by multiplying $2,619,100,000 by 1.0075 and then multiplying the product by the United States Consumer Price Index for the fiscal year 2008 and then dividing the product by the United States Consumer Price Index for the fiscal year 2007.

Revenue includes the total net cash payment from both the Single Business Tax and the Michigan Business Tax, but excluding revenue from the tax on insurance companies.

For the 2008 fiscal year, if the net cash payments exceed the fiscal year 2008 base, 60% of the excess, an increase from 50%, will be refunded to taxpayers in the succeeding fiscal year and the remaining 40%, a decrease from 50%, will be deposited into the budget stabilization fund.

For the 2009 fiscal year, if the net cash payments exceed the fiscal year 2009 base, 60% of the excess, an increase from 50%, will be refunded to taxpayers in the succeeding fiscal year and the remaining 40%, a decrease from 50%, will be deposited into the budget stabilization fund. The fiscal year 2009 base is calculated by multiplying $3,051,500,000 by 1.015 and then multiplying the product by the United States Consumer Price Index for the fiscal year 2009 and then dividing the product by the United States Consumer Price Index for the fiscal year 2007.

For the 2010 fiscal year and each fiscal year after 2010, if the net cash payments exceed the fiscal year base, 60% of the excess, an increase from 50%, will be refunded to taxpayers in the succeeding fiscal year and the remaining 40%, a decrease from 50%, will be deposited into the budget stabilization fund.

The fiscal year base is calculated by multiplying the fiscal year base for the preceding fiscal year by 1.0075 and then multiplying the product by the United States Consumer Price Index for the fiscal year and then dividing the product by the United States Consumer Price Index for the immediately preceding fiscal year.

If the revenue limit is exceeded by less than $5 million, all of the excess will be credited to the Budget Stabilization Fund.

For the 2008 fiscal year, the refund available, because the MBT exceeds the revenue limits, shall be applied pro rata to the taxpayers that made positive net cash payments during the fiscal year. The taxpayer's pro rata share shall be the total amount to be refunded multiplied by a fraction the numerator of which is the positive net payments made by the taxpayer during the fiscal year and the denominator of which is the sum of the positive net cash payments made by all taxpayers during the fiscal year.

For each fiscal year after the 2008 fiscal year, the refund available shall be applied pro rata to the taxpayers that claimed 1 or more of the credits under Section 403 or 405 (compensation credit, investment tax credit, research and development credit) during the immediately preceding fiscal year. The taxpayer’s pro rata share shall be the total amount to be refunded multiplied by a fraction the numerator of which is the credits claimed under Sections 403 and 405 by the taxpayer during the immediately preceding fiscal year and the denominator of which is the sum of the credits claimed under Sections 403 and 405 by all taxpayers during the immediately preceding fiscal year.

The “United States Consumer Price Index means the United States Consumer Price Index for all urban consumers as defined and reported by the United States Department of Labor, Bureau of Labor Statistics.