Bill > HB5484

This bill updates Michigan's income tax laws concerning how income from various business activities is sourced and apportioned, meaning how much of that income is considered taxable within the state. It clarifies that if a taxpayer's income-producing activities are solely within Michigan, their entire taxable income is allocated to the state. For businesses operating both inside and outside Michigan, the bill refines rules for determining what portion of their income is subject to Michigan tax, including how to handle income from business activities, capital gains and losses from property sales, royalties, and various service-based income streams like telecommunications, transportation, and media. It also introduces new provisions for sourcing income related to loans and credit card receivables, and updates definitions for terms like "place of primary use" for telecommunications services. Additionally, the bill repeals several sections of the existing income tax act related to sourcing and apportionment, indicating a consolidation and modernization of these tax rules.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2026-HB-5484