Last month on December 13th, a MBT technical correction bill was introduced in the Michigan Senate and referred to the Committee on Finance.  A number of other issues, which the Senate has identified, are being prepared by the Senate staff for inclusion into single-section bills.

Senate Bill Number 1005:

Adds a new sub-section [MCL 208.1111(1)(g)(iii)] to Section 111 to exclude from gross receipts "treasury functions that generate investment income, which functions are embedded within an operating entity."

Adds a new sub-section [MCL 208.1111(w)] to Section 111 to exclude from gross receipts "any tax, fee, or surcharge required by law."

The subtraction for film rental or royalty payments paid by a theater owner to a film distributor, added by PA 145, was amended to be 100% of the film rental or royalty payments starting in 2008.

Also, there were several technical changes made to Section 410 [MCL 208.1410] which provides a credit for a capital investment of not less than $250,000,000 in a professional sports facility that has a capacity of at least 14,000 patrons

It is expected that several such amendments to the MBT will be introduced throughout 2008 as taxpayers become more aware of the consequences of the MBT.