PDF document
- 1 -
                                                  SCHEDULE RZ OF BC-1040
                                   CITY OF BATTLE CREEK INCOME TAX
                              FOR COMPUTATION OF THE RENAISSANCE ZONE DEDUCTION                                                           TAX YEAR:
                                   FOR USE BY A RESIDENT DOMICILED IN A RENAISSANCE ZONE,
       AN INDIVIDUAL WITH INCOME FROM RENTAL REAL ESTATE LOCATED IN A RENAISSANCE ZONE OR
AN INDIVIDUAL PROPRIETORSHIP, PROFESSION OR PARTNERSHIP LOCATED AND CONDUCTING  BUSINESS IN A RENAISSANCE ZONE
1. Name(s) as shown on BC-1040                                                                                    2.Your social security number

DISQUALIFICATION SECTION
  AN INDIVIDUAL IS NOT QUALIFIED TO CLAIM THE RENAISSANCE ZONE DEDUCTION IF ANY OF THE FOLLOWING TAXES ARE DELINQUENT :
  Battle Creek Income Tax     Personal Property Tax                  Commercial Facilities Tax (CFT)              City Utilities Users Tax
  Michigan Income Tax         Michigan Single Business Tax           Enterprise Zone Tax                          Technology Park Development Tax
  General Property Tax        Industrial Facilities Tax (IFT)        Neighborhood Enterprise Zone Tax             Commercial Forest Tax

RESIDENT DOMICILED IN A RENAISSANCE ZONE 
COMPLETE THIS SECTION IF YOU ARE OR WERE A RESIDENT OF BATTLE CREEK DOMICILED IN A RENAISSANCE ZONE.
A 183 DAY RESIDENCE REQUIREMENT MUST BE COMPLETED BEFORE QUALIFYING TO CLAIM THE RENAISSANCE ZONE DEDUCTION.
3. Address of domicile in Renaissance Zone

4. Date domicile established at this residence           //                  If domicile is continuous for at least 183 days, taxpayer is qualified on this date.
5. Dates of domicile this year :   Starting date         //          Ending date            //                    Total number of days                           Days
6. Percentage of year as a qualified resident of a Renaissance Zone  (Line 5 divided by 365)                                          6.                         %
7. Gross income from the BC-1040 form (line 1, 2 & 3 netted (before RZ deduction))                                                    7.                         00
8. Capital gains (not ordinary income) included in amount reported on BC-1040 form                                                    8.                         00
9. Lottery winnings included in income reported on BC-1040                                                                            9.                         00
10.Total deductions related to income included in line 7                                                                              10.                        00
11.Base income for Renaissance Zone deduction (Line 7 less lines 8, 9 and 10)                                                         11.                        00
12.Total qualified ordinary income  (Line 11 multiplied by line 6)                                                                    12.                        00
13.Portion of gains from sale or exchange of property occurring after qualification date                                              13.                        00
14.Lottery winnings from an instant lottery game or an on-line game won after becoming a qualified taxpayer                           14.                        00
15.Renaissance Zone deduction allowed  (Add lines 12, 13 and 14) Enter here and on BC-1040, line 3                                    15.                        00

OTHER INDIVIDUALS WITH INCOME FROM RENTAL REAL ESTATE, BUSINESS, PROFESSION OR
PARTNERSHIP LOCATED AND DOING BUSINESS IN A RENAISSANCE ZONE
COMPLETE THIS SECTION IF YOU ARE A  RESIDENT OR NONRESIDENT INDIVIDUAL WITH INCOME FROM RENTAL REAL
ESTATE, A BUSINESS, A PROFESSION OR A PARTNERSHIP LOCATED AND DOING BUSINESS IN A RENAISSANCE ZONE.
16.Business name (D.B.A.) and address of each location in a Renaissance Zone                                      RESIDENT                NONRESIDENT
                                                                                                                  COLUMN                  COLUMN
17.Business and farming income reported on BC-1040                                                         17.                        00                         00
18.Net operating loss deduction claimed on BC-1040                                                         18.                        00                         00
19.Retirement plan deduction claimed on BC-1040                                                            19.                        00                         00
20.Base for Renaissance Zone deduction (Line 17 less lines 18 and 19)                                      20.                        00                         00
21.Renaissance Zone Apportionment Percentage                      COLUMN 1        COLUMN 2    COLUMN 3
                                                                  IN BATTLE CREEK IN REN. ZONEPERCENTAGE
   21a.Average net book value of real and personal property                                   (Column 2 divided
   21b.Gross rents paid on real property multiplied by 8                                      by column 1)
   21c.Total property (Add line 21a and 21b)                                                               %
   21d.Total wages, salaries and other compensation                                                        %
   21e.Total percentages  (Add column 3, line 21c and 21d)                                                 %
   21f.Renaissance Zone deduction percentage (Line 21e divided by 2)                                       21f.                       %%
22.Renaissance Zone deduction for business (Line 20 multiplied by line 21f)                                22.                        00                         00
23.Renaissance Zone deduction from partnership return             PARTNERSHIP FEIN         -               23.                        00                         00
24.Address of each parcel of rental real estate located in a Renaissance Zone

25.Income from rental real estate located within a Renaissance Zone                                        25.                        00                         00
26.Total Renaissance Zone deduction(Add lines 22, 23 and 25) Enter here & on BC-1040 line 3                    26.                    00                         00



- 2 -
                                     INSTRUCTIONS FOR SCHEDULE RZ OF BC-1040 
                                     RENAISSANCE ZONE DEDUCTION 
                                                                                 
GENERAL INFORMATION                                                                
Four geographic areas within Battle Creek were designated as Renaissance           
Zones (zones 1 thru 4 – beginning January 1, 2001 ending December 31,              
2015).  This designation grants tax relief to a qualified taxpayer.  In            
conjunction with the designation of these zones, the Battle Creek Income           
Tax Ordinance was amended, effective January 1, 1997, to include a                A. Adjust the basis for the property to the fair market value on the 
Renaissance Zone deduction.                                                        qualification date (the prior days closing price for traded 
WHO MAY CLAIM A RENAISSANCE ZONE DEDUCTION                                         securities) and subtract the basis from the sale proceeds; or 
A qualified resident of Battle Creek domiciled in a Renaissance Zone for          B. Divide the number of months the property was held since the 
183 consecutive days and qualified resident and nonresident individuals            qualification date by the total number of months the property was 
with income from rental real estate, business, profession or other activity        held and apply this fraction to the gain reported for the property 
located and doing business in a Renaissance Zone.                                  on the federal income tax return. 
HOW TO CLAIM A RENAISSANCE ZONE DEDUCTION                                         
To claim a  Renaissance  Zone  deduction, a taxpayer must file a Battle           
Creek income tax return and attach a completed Schedule RZ of the BC-            Line  14.  Enter lottery winnings from instant games or on-line games won 
1040.                                                                             after the qualification date listed on line 2. 
RENAISSANCE ZONE DEDUCTION DISQUALIFIERS                                         INDIVIDUALS WITH INCOME FROM RENTAL REAL ESTATE, 
A person is not eligible to claim a Renaissance Zone deduction if:               BUSINESS, PROFESSION OR PARTNERSHIP 
1.   The person is delinquent in filing or paying any of the following state or  For this section of Schedule RZ residents are to use the resident column 
 local taxes: Michigan single business tax, Michigan income tax, city            and nonresidents are to use the nonresident column.  A part-year resident is 
 income tax, Act 198 industrial abatement tax, commercial abatement tax,         to divide each line item and report the resident and nonresident portions 
 enterprise zone tax, city utility tax or general property taxes.                accordingly. 
2.   The person owns residential rental property and did not file an affidavit   Line 16.    List the business name, D.B.A., and the address of each location 
 with the Battle Creek City Treasurer’s Office by December 31 of the prior         within a Renaissance Zone. 
 tax year attesting that the property is in compliance with all applicable       Line 17.    Enter the business and farm income reported on BC-1040. 
 state and local zoning, building and housing laws or codes.                     Line 18.    Enter the net operating loss deduction claimed on BC-1040. 
A business owner is subject to the above disqualifiers and not eligible to       Line 19.    Enter the retirement plan deduction claimed on BC-1040 related 
claim a Renaissance Zone deduction if the business:                                to income on line 17 of this form. 
1.   Is located within Battle Creek outside of a Renaissance Zone and moves      Line 21.    The Renaissance Zone apportionment percentage is used by 
 to a location within a Renaissance Zone in Battle Creek without approval          companies doing business in Battle Creek inside a Renaissance 
 of the City.                                                                      Zone and outside the Renaissance Zones.  If the business 
2.   Relocates more than 25 full-time equivalent jobs from one or more non-        income is 100% within the Renaissance Zones, enter 100% on 
 Renaissance Zone local governmental units (city, village or township)             line 21f and complete the form from there. 
 and any of the government units from which a job was relocated adopts a         Line  21a.   In column 1 enter the average net book value of all real and 
 resolution objecting to the relocation within 60 days of being notified of        tangible personal property owned and located in Battle Creek.  In 
 the job relocation by the business.                                               Column 2 enter the average net book value of the real and 
RESIDENT DOMICILED IN A RENAISSANCE ZONE                                           tangible personal property owned and located in a Battle Creek 
DOMICILE DEFINED:  Domicile is the place where a person has his or her             Renaissance Zone. The average net book value of real and 
true, fixed and permanent home and principal establishment, to which,              tangible personal property may be determined by adding the net 
whenever absent therefrom, he or she intends to return.                            book value at the beginning of the year to the net book value at 
QUALIFICATION DATE:  A resident domiciled in a Renaissance Zone for                the end of the year and dividing the sum by two, or if the business 
the required 183 consecutive days becomes a qualified taxpayer as of the           was located in the Renaissance Zone for less than a year, on a 
first day of domicile.                                                             monthly average basis. 
DEDUCTIBLE INCOME:  Income earned or received during the period of               Line 21b.  Enter in column 1 the gross annual rent multiplied by 8 for all 
domicile in a Renaissance Zone may be deducted except the following:               rented real property located in Battle Creek.  In column 2 show 
Lottery winnings from an instant game or on-line game won before                   the gross annual rent multiplied by 8 for rented real property 
becoming a qualified taxpayer; the portion of gains from the sale or               located in a Battle Creek Renaissance Zone. 
exchange of property occurring before the qualification date; and income         Line 21c. Total column 1 and column 2. In column 3 enter the percentage 
from illegal activities.                                                           (column 2 divided by column 1). 
                                                                                 Line 21d.  Enter in column 1 compensation paid to employees for work or 
INDIVIDUAL WITH INCOME FROM RENTAL REAL                                            services performed within Battle Creek.  In column 2 enter 
ESTATE, A BUSINESS, A PROFESSION OR A                                              compensation paid to employees for work or services performed 
PARTNERSHIP LOCATED AND DOING BUSINESS IN A                                        within a Battle Creek Renaissance Zone. In column 3 enter the 
RENAISSANCE ZONE                                                                   percentage (column 2 divided by column 1). 
INCOME QUALIFIED FOR RENAISSANCE ZONE DEDUCTION                                  Line 23.    Enter the Renaissance Zone deduction from a partnership.  Be 
                                                                                   certain to enter the partnership Federal Employer Identification 
1.   That portion of business or professional income from business activity in     Number (FEIN).  If a person has a Renaissance Zone deduction 
 a Renaissance Zone after adjustment for any net operating loss                    from more than one partnership, attach a schedule providing 
 deduction and retirement plan deduction.  The Renaissance Zone portion            necessary data.  Adjust for any retirement plan deduction claimed 
 of business activity is determined via a two-factor apportionment formula,        on BC-1040, line 3 based on partnership income included in line 
 property and payroll within a Battle Creek Renaissance Zone to that in            23. 
 Battle Creek. 
                                                                                 Line 24.    Enter the address for each parcel of rental residential real estate 
2.   Income from rental of real property located in a Renaissance Zone.            located in a Renaissance Zone. 
3.   The partner’s share of partnership income from business activity in a       Line 25.    Enter the income from rental real estate located in a Renaissance 
 Renaissance Zone.                                                                 Zone.  
RESIDENTS DOMICILED IN A RENAISSANCE ZONE                                        Line 26.    Enter the total of lines 22, 23 and 25.  Also enter this total on line  
Line 3.  Enter address of domicile in the Renaissance Zone.                        3 of the BC-1040 form. 
Line 4.  Enter the date domicile was established at residence on line 3.         ASSISTANCE 
Line 5.   Enter the starting and ending dates of domicile in the Renaissance     If you have questions or need assistance, contact the Battle Creek Income 
      Zone this year and the total number of days domiciled.                     Tax Department by phone at (269) 966-3345 or by mail send to PO Box 
Line  6.    Divide the number of days on line 5 by 365, and enter the            1657, Battle Creek, Michigan  49016. 
      percentage.                                                                WEBSITE 
Line 7.  Enter gross net income (BC-1040, lines 1, 2 & 3 netted)                 Income tax forms, instructions and additional information are available 
Line 13.  Determine the portion of capital gains (not including capital losses)  under the Income Tax Department section of the City of Battle Creek 
      from sale or exchange of property reported on BC-1040, line 2 that         website, www.battlecreek.org. 
      occurred after the qualification date listed on line 4 and enter the 
      amount.  Attach a schedule showing the computation.  The 
      allowable Renaissance Zone deduction for capital gains may be 
      determined by one of the following methods: 
       





PDF file checksum: 3751638867