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CITY OF SAGINAW INCOME TAX
2020 Instructions for Form S-1120 for CORPORATIONS
doing business in Saginaw

FILING DATE
Taxpayers on a calendar year are required to file by April 30 of General Instructions
the subsequent year. Those on a fiscal year must file by the last All dollar amounts must be rounded to the nearest whole dollar.
day of the fourth month following the end of the fiscal year.
Returns shall be for the same calendar year, fiscal year, or other The income and expense items should be reported in the
accounting period as the taxpayer uses for Federal income tax following manner:
purposes.
Depreciation - Use the same basis and method as used for the
REMITTANCE Federal Income Tax reporting.
If the tax due is one dollar ($1.00) or more it must be paid
when filing the return. Make remittance payable to: Contributions –Are deductible to the same extent, and under
TREASURER - CITY OF SAGINAW the same limitations, as under the Federal Internal Revenue
Code.

DECLARATION AND PAYMENT OF ESTIMATED TAX
Corporations must make estimated tax payments every year that Separate Accounting
their total City tax will exceed $250.00. To make estimated The taxpayer may petition for, or the administrator may require,
payments, file a Saginaw Declaration of Estimated Tax. use of the separate accounting method. If such method is
petitioned, the administrator may require a detailed statement to
Estimated taxes are payable in four equal installments. The determine whether the net profits attributable to the city will be
payments are due on the last day of the 4th, 6th, 9 th and 13th month apportioned with reasonable accuracy (Ordinance Section 19).
after the start of your fiscal year. For calendar year taxpayers, the
payments are due on April 30, June 30, September 30, and Generally, a corporation that is unitary in nature (i.e., has
January 31. You may also pay in full with the first voucher. central management, purchasing, warehousing, advertising,
etc.) cannot use separate accounting. Taxpayers allocating on
TAX RATE any basis other than separate accounting shall include all
1.50% effective July 1, 1989. interest, dividends and other non-operating income to arrive at
the total income subject to the allocation percentage.

EFFECTIVE DATE OF TAX
The City of Saginaw income tax became effective July 1, 1965. Taxpayers using separate accounting shall include in income
Corporations subject to the tax are required to file a return each subject to tax a proportionate share of dividends, interest and
year, commencing with their first year, calendar or fiscal, ending other non-operating income of the total corporation. This type
on or after July 1, 1965, and to pay the tax on that part of their net of income is apportioned to Saginaw activity on the same basis
income attributable to business activity in Saginaw. as general administrative and overhead costs are apportioned.

CORPORATION REQUIRED TO FILE Instructions for Page 1
Every corporation doing business in the City, whether or not it has Line 1. Enter the net profit or loss from your Federal corporate
an office or place of business in the city or a net profit, is required income tax return.
to file a City of Saginaw Income Tax Corporation Return, Form S-
1120. Line 6. Exclude on this line any portion of capital gains and
Corporations cannot elect to file and be taxed as partnerships losses occurring before the effective date of the ordinance, July
and visa versa. Sub-Chapter S corporations are treated as C 1, 1965. Compute the exclusion by using one of the following
corporations and must file a S-1120. methods:

Non-profit corporations, which have applied for and received 1) The difference between the purchase price and
approval for exemption from the Federal income tax shall not be the fair market value of the asset on 7/1/65.
required to file a Saginaw return provided they submit, to the 2) Prorate the amount based on the number of
Administrator, a copy of their exemption approval from the Internal months since 7/1/65 in relation to the total number
Revenue Service. Such exemption from the City's filing of months held.
requirement will continue in effect as long as their Federal
exemption is in effect. Line 10. Enter on this line the net capital loss carryover and/or
The ordinance also specifically exempts state and national banks, net operating loss carryover applicable to Saginaw. Do not use
trust companies, insurance companies, building and loan and this line for a net operating loss carry back since carry back
saving and loan associations, and credit unions (either state credit requests for prior years will not be made. Capital losses
chartered or federal chartered). and NOL incurred prior to being required to file a Saginaw
return are not allowed to be carried forward. Losses are to be
EXTENSIONS allocated to Saginaw at the percentage of business conducted
Saginaw allows Companies the same extension period granted by in Saginaw in the year in which the loss was sustained. If all
the Federal Government. Please attach a copy of the Federal business was not conducted in Saginaw in the year in which the
Extension to the Saginaw Tax Form S-1120. An extension does loss was sustained, use the business allocation percentage
not extend the time for paying the tax due. formula to arrive at the deductible portion of the loss.

RENAISSANCE ZONE DEDUCTION Computation of Over Payment of Tax
A corporation located and doing business in a Saginaw Line 16. If the total tax payments (line 15c) is greater than tax
Renaissance Zone may be eligible to claim an income tax due (line 14) subtract line 15c from line 14 and enter the tax
reduction. This deduction allows the corporation to deduct the overpayment.
portion of their income earned in a Saginaw Renaissance Zone
from income subject to Saginaw income tax. A taxpayer is not Line 17. Enter all or the portion of the overpayment to be
qualified to claim the deduction if the corporation is delinquent credited forward to the next year.
for any Michigan or local taxes. Corporate filing is still required.

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2020 Instructions for Form S-1120 for CORPORATIONS doing
business in Saginaw Continued SCHEDULE E
Line 1. Use this line to adjust net profit for those items reflected in
Line 18. If you wish to make a donation of any portion or all of the taxable period, which are attributable to any period prior to
the overpayment to the City of Saginaw Fireworks enter the being subject to the Saginaw Income Tax.
amount of the donation, otherwise leave blank. Line 3 . Enter the losses from entities filing as partnerships that
are included in taxable income reported on page 1, line1.
Line 19. Enter the amount of your overpayment to be refunded. Line 5. The Saginaw City Income Tax Ordinance provides for the
A refund will be issued via a paper refund check unless you specific exclusion from the tax of interest from obligations of the
choose to get the refund via direct deposit by marking the box United States, the states or subordinate units of government of the
on line 20 for Refund – Direct Deposit and enter (a) the bank state.
routing number, (b) the bank account number and (c) the Line 6. If you reported dividend income, enter on this line the
account type. amount of the dividend received deductions allowed by the
Federal Internal Revenue Code for dividends received.
Computation and Payment of Tax Line 7. Taxpayers may deduct income, war profits and excess
Line 21. If tax due (line 14) is greater than the total tax profits taxes imposed by foreign countries or possessions of the
payments (line 15c) subtract line 14 from line 15c and enter tax United States, allocable to income included in taxable net
due. Tax due must be paid when filing the return. income, any part of which would be allowable as a deduction in
determining federal taxable income under the applicable pro-
To pay with a check or money order make the check or money visions of the Federal Internal Revenue Code.
order payable to the SAGINAW CITY TREASURER and mail Line 8. You may subtract any job credit taken on the Federal
the payment with the return to: Saginaw Income Tax return.
Department, 1315 So. Washington Ave., Saginaw, Michigan Line 9. Enter income from entities filing as partnerships that are
48601. included in taxable income reported on page 1, line 1.

To make payment via direct withdrawal from your bank account SCHEDULE F
mark the box on line 20 to Pay Tax Due – Electronic funds S corporations must file as C corporations. Schedule F is used to
withdrawal, and complete (a) the bank routing number, (b) the reconcile the amount reported on line 1, page 1 S-1120 with
bank account number and (c) the account type. Federal Form 1120S and Schedule K.

Line 22. If the “Yes” box is marked, the Corporation is SCHEDULE G
authorizing the Saginaw Income Tax Department to call the LINE 1.Net operating losses carried forward are to be reported on
preparer to answer any questions that may arise during the this line. There is no provision for carrying back losses to prior
processing of its return. The Corporation is also authorizing the tax years. Carryover losses are to be allocated to Saginaw at
preparer: to give the Department any information that is missing the percentage of business conducted in Saginaw in the year in
from the return; to call the Department for information about the which the loss was sustained. If all business was not conducted in
processing of the return or the status of any related refund or Saginaw in the year in which the loss was sustained, use the
payments; and to respond to certain notices that the business allocation percentage formula to arrive at the deductible
Corporation has shared with the preparer about math errors, portion of the loss. Attach a schedule showing your computation
offsets and return preparation. for the amount reported on this line.

SCHEDULE D LINE 2.Enter on this line the net capital loss carryover applicable
The business allocation percentage formula is to be used by to Saginaw. Net capital losses sustained by a corporation for
corporations with business activity both within and outside the City periods subsequent to July 1, 1965, may be carried forward in the
of Saginaw unless permission has been granted to use the same manner as under the federal Internal Revenue Code. No
separate accounting method. deduction will be allowed for capital losses sustained prior to July
1, 1965. If all business was not conducted in Saginaw in the year
Line 1a. Enter in Column 1 the average net book value of all real in which the loss was sustained, use the business allocation
and tangible personal property including inventories owned by the percentage formula to arrive at the deductible portion of the loss.
business, regardless of location; and in Column 2 show the net Attach a schedule showing your computation for the amount
book value of the real and tangible personal property including reported on this line.
inventories located in the City of Saginaw. The average net book
value of real and tangible personal property including inventories LINE 3.Corporations who are partners in a business activity taxed
may be determined by adding the net book values at the beginning as a partnership that has business activity in Saginaw must enter
of the year and the net book values at the end of the year and on this line their portion of the Saginaw taxable income or loss
dividing the sum thus obtained by two. Any other method, which from the partnership(s). Attach a schedule showing your
will accurately reflect the average net book value for the year, will computation for the amount reported on this line including the
also be permitted. name and taxpayer identification number of the partnership(s).
Line 1b. Enter in Column 1 the gross annual rentals multiplied by
8 for all rented property regardless of location. In Column 2 show ASSISTANCE
the gross annual rentals multiplied by 8 for all rented property If you have questions, would like to request forms, or need
located in the City of Saginaw. Gross annual rentals refer to real assistance in preparing your return call (989) 759-1651. Questions
property only rented or leased during the taxable period, and by mail should be directed to: City of Saginaw , Income Tax Office,
should include the actual sums of money or other consideration 1315 S. Washington Ave, Saginaw, Michigan 48601.
payable, directly or indirectly, by the taxpayer for the use of
possession of such property. WEBSITE
Line 2. Enter in Column 1 the total compensation paid to all Income tax forms, instructions and additional information are
employees during the year and in Column 2 show the amount of available under the Income Tax Department section of the City of
compensation paid to employees for work or services performed Saginaw website, www.Saginaw-MI.com
within the City of Saginaw during the year.
Line 3. Enter in Column 1 the total gross revenue from all sales or NOTICE
services rendered during the year and in Column 2 show the These instructions are interpretations of the Saginaw Income Tax
amount of revenue derived from sales made or services rendered Ordinance. The Ordinance will prevail in any disagreement
in the City of Saginaw during the year. between the instructions and the Ordinance.

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