The DOR ruled (51) that a manufacturer is required to add back property taxes it had expensed and deducted for Federal income tax purposes, to compute its state adjusted gross income tax base
Critics complain the claw back provision prevents property owners who win an assessment appeal from being granted any tax reduction because the area's tax base
is not large enough.
No one, Justice Breyer said, claimed the different tax rates for foreign and domestic corporations offset these significant differences in their tax bases
Such concerns include states attempting to use sales tax simplification legislation to expand the tax base
or attempts to move existing sales and use tax provisions that do not comply with the Agreement into other areas of the tax code (in essence, "shifting complexity" to other taxes).
One example highlighting the importance of such an approach would be using consolidated accounts after the elimination of intercompany transactions as a common tax base
A single tax rate is applied to individuals and businesses; investment income is not included in the tax base
However, whether the MSBT must be added back in computing the state tax base
continues to be an area of litigation.
The work group examining tax bases
and exemptions researched the use of exemption certificates and recommended:
Howell Township's expanding tax base
and strong fiscal management result in a healthy financial position.
The modified tax base
is subject to apportionment, using a three-factor formula.
Recent developments have significantly modified the Michigan nexus standard that is used for determining whether a business has sufficient contacts with the State to be subject to the SBT, and whether an in-state taxpayer's tax base
can be apportioned to another State (the so-called throwback issue).
The underlying 'AA-' rating reflects the district's strong tax base
growth, sound management practices, and historically healthy financial position.