Legislature Expands the Definition of Financial Institution for Purposes of the Michigan Business Tax
Public Act 156 of 2010 (PA 156-10) amends the Michigan Business Tax definition of"financial institution". The definitionis expanded to include federally chartered farm credit system institutions. The change is retroactive and applicable to taxes levied on or after January 1, 2008. Financial institutions are subject to the franchise tax based on net capital. They are not subject to the business income tax or the modified gross receipts tax portions of the Michigan Business Tax.