Michigan Compiled Laws 284-1964-2 Chapter 2 Uniform City Income Tax Ordinance (141.601...141.699)

• Section 141.601 Uniform City Income Tax Ordinance; Short Title.
  This ordinance shall be known and may be cited as the “uniform city income tax ordinance”. History: 1964, Act 284, Imd. Eff. June 12,
• Section 141.602 Uniform City Income Tax Ordinance; Rules Of Construction, Definitions.
  For the purposes of this ordinance, the words, terms and phrases set forth in sections 3 to 9 and their derivations have the meaning...
• Section 141.603 Definitions; A To D.
  (1) “Administrator” means the official designated by the city to administer this ordinance or the duly authorized agent or representative of that official but...
• Section 141.604 Definitions; C.
  (1) “City” means the city adopting the ordinance. (2) “Compensation” means salary, pay or emolument given as compensation or wages for work done or...
• Section 141.605 Definitions; D.
  “Doing business” means the conduct of any activity with the object of gain or benefit, except that it does not include: (a) The solicitation...
• Section 141.606 Definitions; E, F.
  (1) “Employee” means a person from whom an employer is required to withhold for either federal income or federal social security taxes. (2) “Employer”...
• Section 141.607 Definitions; F To N.
  (1) “Fiscal year” means an accounting period of 12 months ending on any day other than December 31. Only fiscal years accepted by the...
• Section 141.608 Definitions; N To P.
  (1) “Nonresident” means an individual domiciled outside the city. (2) “Person” means a natural person, partnership, fiduciary, association, corporation or other entity. When used...
• Section 141.609 Definitions; R To T.
  (1) “Resident” means an individual domiciled in the city. “Domicile” means a place where a person has his true, fixed and permanent home and...
• Section 141.611 Excise Tax On Incomes; Rates.
  Subject to the exclusions, adjustments, exemptions, and deductions herein provided, an annual tax of 1% on corporations and resident individuals and of 1/2% on...
• Section 141.611a Ordinance, Resolution, Or Agreement To Dedicate And Transfer Funds; Purposes; Commencement; Amount; Definitions.
  (1) For the 1993 tax year and each tax year after 1993, a city that is a qualified local unit of government, as defined...
• Section 141.611b City As Qualified Local Unit Of Government; Dedication And Transfer Of Funds; Purposes; Use Of Federal Data Facility Fund; Amount; Definitions.
  (1) A city that is a qualified local unit of government, as defined by the federal data facility act, may adopt an ordinance or...
• Section 141.612 Excise Tax On Incomes; Application To Resident Individuals.
  The tax shall apply on the following types of income of a resident individual to the same extent and on the same basis that...
• Section 141.613 Types Of Nonresident Income To Which Tax Applicable; Extent And Basis Of Tax.
  The tax shall apply on the following types of income of a nonresident individual to the same extent and on the same basis that...
• Section 141.614 Excise Tax On Incomes; Taxable Net Profits Of A Corporation, Definition.
  The tax shall apply on the taxable net profits of a corporation doing business in the city, being levied on such part of the...
• Section 141.615 Excise Tax On Incomes; Unincorporated Business, Profession; Sole Proprietorship, Partnership.
  An unincorporated business, profession or other activity conducted by 1 or more persons subject to the tax as either a sole proprietorship or partnership...
• Section 141.616 Unincorporated Business, Profession, Or Activity; Return.
  An unincorporated business, profession or other activity owned by 2 or more persons shall file an annual information return setting forth: (a) The entire...
• Section 141.617 Unincorporated Business, Profession, Or Activity; Election To Pay Tax.
  At the election of an unincorporated business, profession or other activity, the entity, on behalf of the owners, may compute and pay the tax...
• Section 141.618 Partial Business Activity In City; Apportionment Of Net Profit.
  When the entire net profit of a business subject to the tax is not derived from business activities exclusively within the city, the portion...
• Section 141.619 Partial Business Activity In City; Separate Accounting Method.
  The taxpayer may petition for and the administrator may grant approval of, or the administrator may require, the separate accounting method. If such method...
• Section 141.620 Partial Business Activity In City; Business Allocation Percentage Method.
  The business allocation percentage method shall be used if such taxpayer is not granted approval to use the separate accounting method of allocation. The...
• Section 141.621 Partial Business Activity In City; Percentage Of Average Net Book Value; Gross Rental Value Of Real Property.
  First, the taxpayer shall ascertain the percentage which the average net book value, of the tangible personal property owned and the real property, including...
• Section 141.622 Partial Business Activity In City; Percentage Of Compensation Paid Employees.
  Second, the taxpayer shall ascertain the percentage which the total compensation paid to employees for work done or for services performed within the city...
• Section 141.623 Partial Business Activity In City; Percentage Of Gross Revenue.
  Third, the taxpayer shall ascertain the percentage which the gross revenue of the taxpayer derived from sales made and services rendered in the city...
• Section 141.624 Partial Business Activity In City; Business Allocation Percentage.
  Fourth, the taxpayer shall add the percentages determined in accordance with sections 21, 22 and 23 and divide the total by 3 and the...
• Section 141.625 Partial Business Activity In City; Substitute Methods.
  An alternative method of accounting shall be used if the taxpayer or the administrator demonstrates that the net profits of the taxpayer allocable to...
• Section 141.626 Capital Gains And Losses; Determination.
  (1) Capital gains and capital losses, other than gains and losses on securities issued by the government of the United States, shall be included...
• Section 141.627 Estates Or Trusts, Deemed Nonresidents; Definitions.
  An estate or trust is not subject to tax under this ordinance, except that it shall be treated as a nonresident individual for purposes...
• Section 141.628 Income From Estates And Trusts.
  (1) “Income from estates” means “income” as defined in section 643 (b) of the federal internal revenue code, properly paid, credited or distributed but...
• Section 141.631 Exemptions.
  (1) An individual taxpayer in computing his or her taxable income is allowed deductions for the full personal and dependency exemptions authorized by the...
• Section 141.632 Payments And Benefits Not Subject To Tax.
  The following payments and benefits received by any person are not subject to the tax: (a) Gifts and bequests. (b) Proceeds of insurance, annuities,...
• Section 141.633 Deductible Expenses Generally.
  Ordinary, necessary, reasonable and unreimbursed expenses paid or incurred by an individual in connection with the performance by him of services as an employee...
• Section 141.634 Deductible Expenses; Alimony, Separate Maintenance Payments And Principal Sums Payable In Installments, Moving Expenses, And Payments To Retirement Plan Or Account.
  The following expenses paid or incurred by an individual may be deducted from gross income in determining income subject to tax to the extent...
• Section 141.635 Qualified Taxpayer Within Renaissance Zone; Determination Of Deductions Claimed.
  (1) Notwithstanding any other provision of this ordinance and to the extent and for the duration provided in the Michigan renaissance zone act, Act...
• Section 141.641 Annual Return; Joint Return.
  (1) Every corporation doing business in the city and every other person having income taxable under this ordinance in any year before the 1997...
• Section 141.642 Returns; Contents.
  The annual return shall set forth: (a) The number of exemptions, place of residence, place of employment and other pertinent information as shall reasonably...
• Section 141.643 Payment Of Tax; Refund; Interest; Allocation Of Payment; Notice; Nonobligated Spouse; Form; Filing; Release Of Liability; Definitions.
  (1) A balance of the tax that is due the city at the time of filing an annual return shall be paid with the...
• Section 141.644 Federal Income Tax Return; Eliminations.
  Where total income, total deductions, net profits, or other figures are derived from the taxpayer's federal income tax return, any item of income not...
• Section 141.645 Net Profits; Consolidated Returns.
  For the purpose of determining net profit allocable to the city under this ordinance, a corporate taxpayer may elect to file a consolidated return...
• Section 141.646 Amended Return; Change Of Method Of Accounting.
  An amended return shall be filed with the city or the department, on a form obtainable from the city or the department, if necessary...
• Section 141.651 Withholding Of Tax By Employer; Employer As Trustee; Failure Or Refusal To Deduct And Withhold Tax; Liability; Discharge.
  (1) An employer doing business or maintaining an establishment within the city shall withhold from each payment to the employer's employees on and after...
• Section 141.652 Tax Withheld; Payments Or Persons Excepted.
  Employers shall not withhold any tax from the following payments or persons: (a) Compensation paid to domestic help. (b) Compensation paid to a person...
• Section 141.653 Tax Withheld; Payment By Employee Or Employer.
  If the tax is not withheld, an employee is not excused from filing a return and paying the tax on his compensation. If the...
• Section 141.654 Tax Withheld; Exemptions Claimed; Percentage Of Work Done At Predominant Place Of Employment; Qualified Taxpayer Within Renaissance Zone.
  An employee with compensation subject to tax shall file with his or her employer a form on which the employee states the number of...
• Section 141.655 Tax Withheld; Revised Form; Time For Filing; Qualified Taxpayer Within Renaissance Zone.
  (1) Except as provided in subsection (2), an employee shall file with his or her employer a revised form within 10 days after the...
• Section 141.656 Refusal By Employee To Furnish Withholding Certificate; Withholding By Employer; Report.
  If an employee refuses to furnish a withholding certificate upon the request of his or her employer, the employer shall withhold a percentage of...
• Section 141.657 Tax Withheld; Withholding Tables; First Compensation Taxable.
  (1) The city shall provide withholding tables establishing the amounts to be withheld for various tax rates, wage brackets, numbers of exemptions and pay...
• Section 141.658 Tax Withheld; Overwithheld Tax, Refund.
  If an employer withholds more than the apparent tax liability of an employee due to an increase in the number of exemptions claimed during...
• Section 141.659 Tax Withheld; Correction Of Error, Refund.
  Correction of an over or an under-withholding as a result of an employer's error shall be made as follows: (a) If the error is...
• Section 141.660 Tax Withheld; Payment By Employer; Return; Electronic Funds Transfer.
  (1) Except as provided in subsection (2), an employer shall file a return, furnished by or obtainable on request from the city, and pay...
• Section 141.661 Tax Withheld; Employer's Reconciliation Of Quarterly Returns; Deficiency; Refund; Information Return; Cessation Of Business.
  (1) An employer shall file with the city or the department a reconciliation of quarterly returns on or before the last day of February...
• Section 141.662 Declaration Of Estimated Tax; Filing; Form; Time; Exceptions.
  (1) A person who anticipates taxable income from which the city income tax will not be withheld with the city or the department shall...
• Section 141.663 Declaration Of Estimated Tax Not Withheld; Computation; Payment; Installments.
  (1) A taxpayer's annual return for the preceding year may be used as the basis for computing a declaration of estimated tax for the...
• Section 141.664 Annual Return; Filing; Extension Of Time; Failure To File; Penalty.
  (1) The filing of a declaration of estimated tax does not excuse the taxpayer from filing an annual return even though there is no...
• Section 141.664a Sale Of Business Or Stock Of Goods Or Quitting Business; Liability For Tax; Escrow By Purchaser; Release To Purchaser Of Known Tax Liability; Failure To Comply With Escrow Requirements; Liability Of Corporation Officers.
  (1) If a person liable for the tax imposed under this ordinance sells a business or the stock of goods of a business or...
• Section 141.665 Credit For City Income Tax Paid Another City.
  An individual who is a resident of the city and received net profits from a business, profession or rental of real or tangible personal...
• Section 141.666 Fractional Part Of A Cent Or Dollar.
  In withholding the tax due under this ordinance, a fractional part of a cent shall be disregarded unless it amounts to 1/2 cent or...
• Section 141.671 Rules And Regulations; Adoption; Enforcement; Forms; Collection Of Tax.
  (1) The administrator may adopt, amend, and repeal rules and regulations relating to the administration and enforcement of this ordinance subject to the approval...
• Section 141.672 Special Ruling; Appeal To Income Tax Board Of Review.
  A taxpayer or employer desiring a special ruling on a matter pertaining to this ordinance or rules and regulations shall submit in writing to...
• Section 141.673 Examination Of Books And Records; Witnesses; Additional Provisions Relating To Dispute Resolution; Protest To Notice Of Intent To Assess Tax.
  (1) If a taxpayer or employer fails or refuses to make a return or payment as required, in whole or in part, or if...
• Section 141.674 Information Confidential; Divulgence, Penalty, Discharge From Employment.
  (1) Information gained by the administrator, city treasurer or any other city official, agent or employee as a result of a return, investigation, hearing...
• Section 141.681 Repealed. 1996, Act 478, Eff. Jan. 1, 1996.
  Compiler's Notes: The repealed section pertained to examination and investigation.
• Section 141.682 Payment Of Tax; Interest; “adjusted Prime Rate” Defined; Penalty For Delay; Waiver Of Penalty For Reasonable Cause.
  (1) All taxes imposed in a taxable year before the 1992 taxable year on a taxpayer and money withheld by an employer under this...
• Section 141.683 Additional Tax Assessment; When Interest And Penalty Not Imposed.
  (1) Interest or a penalty shall not be imposed on an additional tax assessment if, within 90 days from final determination of a federal...
• Section 141.684 Due And Unpaid Assessment; Determination; Procedure.
  (1) For tax years before the 1997 tax year and for tax years after the 1996 tax year and for which a city has...
• Section 141.685 Final Assessment; Protest.
  (1) After the hearing as provided in section 84, the administrator or the department shall issue a final assessment setting forth the total amount...
• Section 141.686 Failure To Pay Tax; Demand; Recovery; Prosecution.
  If an employer or taxpayer files a return showing the amount of tax or withholding due the city or the department, but fails to...
• Section 141.687 Jeopardy Assessment; Procedure.
  (1) If the administrator or the department believes that collection of the tax withheld from an employee's compensation as imposed under this ordinance will...
• Section 141.688 Statute Of Limitations; Waiver; Payment Of Tax.
  (1) Except in case of fraud, failure to file a return, failure to comply with the withholding provisions of this ordinance, or omission of...
• Section 141.689 Statute Of Limitations; Refund.
  (1) Except as otherwise provided in this ordinance, a tax erroneously paid shall not be refunded unless a claim for refund is made within...
• Section 141.691 Income Tax Board Of Review; Appointment Of City Residents; Selection Of Officers; Adoption, Filing, Inspection, And Copies Of Rules Of Procedure; Quorum; Conflict Of Interests; Record Of Transactions And Proceedings; Availability Of Record And Other Writings To Public; Conducting Business At Public Hearing; Notice Of Hearing.
  (1) The governing body of the city shall appoint an income tax board of review consisting of 3 residents of the city who are...
• Section 141.692 Income Tax Board Of Review; Notice Of Appeal; Transcript; Hearing; Confidential Tax Data; Payment Of Deficiency Or Refund.
  (1) A taxpayer or employer may file a written notice of appeal with the secretary of the income tax board of review not more...
• Section 141.693 Appeal To State Tax Commissioner Or Tax Tribunal; Procedure.
  (1) A taxpayer, employer, or other person aggrieved by a rule adopted by the administrator may file a timely appeal to the state commissioner...
• Section 141.694 Appeal To Court Of Appeals Or Supreme Court; Procedure.
  (1) If a taxpayer, employer, other person, or the city or the department is aggrieved by a decision of the tax tribunal, the aggrieved...
• Section 141.695 Payment To Taxpayer From City General Fund Or City Income Tax Trust Fund.
  For tax years before the 1997 tax year and for tax years after the 1996 tax year and for which a city has not...
• Section 141.699 Violations; Misdemeanor; Penalties.
  Each of the following violations of this ordinance is a misdemeanor and is punishable, in addition to the interest and penalties provided under the...

Last modified: October 10, 2016