Michigan Laws 432.314 – Graduated tax; exception
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Terms Used In Michigan Laws 432.314
- Adjusted gross receipts: means gross receipts less a deduction equal to the amount of free play provided and wagered by authorized participants as an incentive to place or as a result of placing internet wagers under this act. See Michigan Laws 432.303
- Casino: means a building or buildings in which gaming is lawfully conducted under the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432. See Michigan Laws 432.303
- Gross receipts: means the total of all sums, including, but not limited to, valid or invalid checks, valid or invalid credit or debit card deposits, valid or invalid ACH deposits, currency, coupons, free play or promotional credits, redeemable credits, vouchers, entry fees assessed for tournaments or other contests, or instruments of monetary value whether collected or uncollected, in each case actually wagered by an authorized participant at or with an internet gaming operator on an internet game, less all of the following:
(i) Winnings. See Michigan Laws 432.303Indian tribe: means that term as defined in 25 USC 2703 and any instrumentality, political subdivision, or other legal entity through which an Indian tribe operates its casino in this state. See Michigan Laws 432.303 Internet: means the international computer network of interoperable packet-switched data networks, inclusive of such additional technological platforms as mobile, satellite, and other electronic distribution channels. See Michigan Laws 432.303 Internet gaming: means operating, conducting, or offering for play an internet game. See Michigan Laws 432.303 Internet gaming operator: means a person that is issued an internet gaming operator license from the board. See Michigan Laws 432.303 month: means a calendar month; the word "year" a calendar year; and the word "year" alone shall be equivalent to the words "year of our Lord". See Michigan Laws 8.3j state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
(1) Except for an internet gaming operator that is an Indian tribe, an internet gaming operator is subject to a graduated tax on the adjusted gross receipts received each calendar year by the internet gaming operator from all internet gaming it conducts under this act as set forth below:
(a) For adjusted gross receipts less than $4,000,000.00, a tax of 20%.
(b) For adjusted gross receipts of $4,000,000.00 or more but less than $8,000,000.00, a tax of 22%.
(c) For adjusted gross receipts of $8,000,000.00 or more but less than $10,000,000.00, a tax of 24%.
(d) For adjusted gross receipts of $10,000,000.00 or more but less than $12,000,000.00, a tax of 26%.
(e) For adjusted gross receipts of $12,000,000.00 or more, 28%.
(2) An internet gaming operator that is an Indian tribe is subject to the payment requirements under section 7(1)(f).
(3) An internet gaming operator shall pay the tax or payment, as applicable, under subsection (1) or (2) on a monthly basis. The payment for each monthly accounting period is due on the tenth day of the following month.
(4) Except as provided in this act and section 12(17) of the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.212, an internet gaming operator is not subject to any excise tax, license tax, privilege tax, occupation tax, or other tax, payment, or fee imposed exclusively on an internet gaming operator or internet gaming operators by this state or any political subdivision of this state, except as provided in this act. This subsection does not impair the contractual rights under an existing development agreement between a city and an internet gaming operator that holds a casino license under the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.201 to 432.226.
(5) In addition to payment of the tax and other fees as provided in this act, and to any payment required pursuant to an existing development agreement described in subsection (4), if a city has imposed a municipal services fee equal to 1.25% on a casino licensee, the city shall charge a 1.25% fee on the adjusted gross receipts of an internet gaming operator that holds a casino license under the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.201 to 432.226, whose casino is in that city.