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CITY OF LAPEER INCOME TAX
Instructions for Form L-1120 for Corporations doing business in Lapeer
CORPORATIONS REQUIRED TO FILE PAGE 1 INSTRUCTIONS
Every corporation doing business in the city, whether or not it has
an office or place of business in the city, is required to file an LINE 8. Only the amount of the gain or loss occurring from
annual City of Lapeer Corporation Income Tax Return, Form L- January 1, 1967, to date of disposition shall be recognized for
1120. purposes of the Lapeer income tax. Adjustment for this is to be
made here by removing the gain or loss on line 2 and inserting, on
Corporations cannot elect to file and be taxed as partnerships. line 8, only the portion of the gain or loss applicable to the holding
Subchapter S corporations are treated as C corporations. period subsequent to January 1, 1967, to the date of disposition.
Any net capital loss carryover included in line 2 of page 1 should
The ordinance specifically exempts from taxation: state and be excluded before entry on line 8. The portion of line 2 that
national banks, trust companies, building and loan associations, represents net capital loss carryover is to be entered on line 12 in
savings and loan associations, credit unions, safety and collateral accordance with the instructions for that line. The amount of gain
deposit companies, and any other association, joint stock company or loss occurring after January 1, 1967, is to be determined by
or corporation at least 90% of whose assets consist of intangible either (1) computing the difference between the January 1, 1967,
personal property and at least 90% of whose gross income fair market value (December 31 closing price for traded securities)
consists of dividends, interest or other charges resulting from the or the cost if the date acquired was subsequent to January 1,
use of money or credit. 1967, and the proceeds from the sale or exchange, or (2) by using
the gain or loss for the entire holding period, as computed for
TAX RATE AND ROUNDING TO NEAREST DOLLAR Federal income tax purposes, and computing the taxable portion
The City of Lapeer Corporate tax rate is 1.0%. Round all of such gain or loss on the ratio that the number of months held in
amounts to the nearest dollar (i.e., $.00 to $.49=$.00, $.50 to the period subsequent to January 1, 1967, is to the total time the
$.99= next dollar). property was held. Do not include capital gains and losses on the
sale or exchange of United States obligations since such gains and
losses are excluded from taxation under the Lapeer Ordinance.
FILING DATE
Calendar year taxpayers must file by April 30, of the following Line 12. Enter on this line the net capital loss carryover and net
year. Fiscal year taxpayers must file within 4 months after the end operating loss carryover applicable to Lapeer. Net capital losses
of their fiscal year. Returns shall be for the same calendar year, sustained by a corporation for periods subsequent to January 1,
fiscal year, or other accounting period as the taxpayer uses for 1967, may be carried forward in the same manner as under the
Federal income tax purposes. Federal Internal Revenue Code. No deduction will be allowed for
capital losses sustained prior to January 1, 1967.
The tax due, if one dollar ($1.00) or more, must be paid when
filing the return. Net operating losses carried forward are to be shown on line 12 of
this return. No deduction is allowed for net operating losses
REMITTANCE sustained prior to January 1, 1967. There is no provision for
Make remittance payable to: CITY OF LAPEER carryback losses. Carryover losses are to be allocated to Lapeer at
Mail to: Income Tax Department, 576 Liberty Park, Lapeer MI the percentage of business conducted in Lapeer in the year in
48446 which the loss was sustained. If all business was not conducted in
Lapeer in the year in which the loss was sustained, use the
business allocation percentage formula to arrive at the deductible
EFFECTIVE DATE OF TAX portion of the loss. Attach a schedule showing your computation
The City of Lapeer income tax became effective January 1, 1967. for the amount reported on this line.
Corporations are required to pay the tax each year on that part of
their net income attributable to business activity conducted in Line 14. Compute the tax due at 1.0% of line 13.
Lapeer, commencing with their first year, calendar or fiscal, ending
after January 1, 1967.
PAGE 2 INSTRUCTIONS
EXTENSIONS SCHEDULE D
Upon filing the form "Application for Extension of Time to File Corporations must use the business allocation percentage formula
Lapeer Income Tax Return" on or before the date for filing a with business activity both within and outside the City of Lapeer
return, the Income Tax Administrator may extend the time for who have not been approved to use the separate accounting
filing up to six months. When an extension is requested, the method.
tentative tax estimated due must be paid. Line 1a. Enter in column 1 the average net book value of all real
When the application form is filed, it may be assumed that the and tangible personal property owned by the business, regardless
extension is automatically granted unless otherwise notified. of location; and in column 2 show the net book value of the real
When the extended Lapeer Income Tax Return is filed, a copy of and tangible personal property owned and located or used in the
the application for extension must accompany it. If the return is City of Lapeer. The average net book value of real and tangible
filed after the extended due date, penalty and interest for late personal property may be determined by adding the net book
filing will apply from the original due date. values at the beginning of the year and the net book values at the
end of the year and dividing the sum thus obtained by two.
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