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202 2INSTRUCTIONS FOR FORM PH-1065
CITY OF PORT HURON PARTNERSHIP RETURN
Who Must File a Return Estimated taxes are payable in four equal installments due on
Every unincorporated business, profession or other activity the last day of the 4th, 6th, 9th and 13th month after the
ow ned by tw o or more persons that is doing business in the beginning of the f iscal year. For calendar year taxpayers,
City of Port Huron must f ile a partnership return. You must the payments are due on April 30, June 30, September 30,
f ile a return even if you did not maintain an office or place of and January 31. You may also pay in full w ith the first
business in the city. You must f ile a return w hether or not voucher. If you need estimated tax forms, please call (810)
the partnership has a net profit. 984-9741.
Limited liability companies f ile a partnership return. Under Resident, Nonresident and Corporate Partners
the Unif orm City Income Tax Act w e tax all corporations as We tax partners w ho are City of Port Huron residents on all
corporations. A Sub-chapter S corporation must f ile as a income from the partnership. This includes income from
corporat ion for Port Huron income tax purposes. business activities outside the city and includes interest,
dividends, rents, royalties and capital gains.
Option to Pay Tax
The partnership must elect either to f ile an informational We tax nonresident and corporate partners on their share of
return or to compute and pay the tax due on behalf of all the net profits related to business activity in the city. When
partners. A partnership may pay the tax on behalf of its a partnership conducts a business activity inside and outside
partners, only if it pays the tax for all partners. If the the city, you must decide the taxable portion using an
partnership chooses to pay the tax on behalf of its partners, approved apportionment method. We also tax nonresidents
complete the " Tax Payment by Partnership" section of page and corporations on other types of income attributable to
1. Do not use this schedule if you are f iling an informational Port Huron, such as rental income and capital gains from
return. property in the city. We do not tax nonresident and
corporate partners on their share of business activity, or
A partnership electing to pay the tax w ill relieve the other income that is not attributable to Port Huron. We also
partners, w ho have no other income subject to Port Huron do not tax interest and dividend income of nonresidents.
tax, from f iling an annual return. Any partner w ho has other
income that is subject to Port Huron tax must f ile an annual The return must show the entire net profit for the period and
return. In this case, report the full amount of taxable income show each partner’ s share of the profit. The return must
on the return and show the tax paid by the partnership as a show w hich partners are City of Port Huron residents and
tax payment. those w ho are nonresidents. If a partner’ s residency status
changed during the year, use separate lines to show how
Date Due and Payments much income is taxable as a resident and as a nonresident.
The return is due by the last day of the fourth month,
follow ing the end of your partnership’ s taxable year. Instructions for Tax Payment by the Partnership:
Calendar year returns are due by May 1, 202 . The3return
must be for the same taxable period as your federal return. Column 1, Adjusted Partnership Income - Complete all of the
appropriate schedules on page 2 of the form. Transfer the
Mail your return and payment to: amounts from schedule C (Dist ribution to Partners), column
6, to this column. List the amounts in the same order as
Income Tax Division you listed the partners on the upper half of page 1.
100 McMorran Boulevard
Port Huron, MI 48060 Column 2, Allowable Individual Deductions - Deduct in
column 2 any adjustments to taxable income reported in
Make all checks payable to: Treasurer, City of Port Huron column 1. Deduct ible items may include capital loss
carryovers and net operating loss carryovers. You must add
To get an extension, use form PH-4267, Application for back in this column any net capital loss realized by a partner
Extension of Time to File a City Income Tax Return. File the more than the allow able deduction. The allow able capital
form on or before the due date of your return. If you are loss deduction for individual partners is the lesser of (1) the
electing to pay the tax, an extension does not extend the net capital loss; (2) the amount in column 1, page 1,
time for paying the tax due. You must pay the total computed w ithout regard to capital gains and losses; or (3)
expected tax due w ith the form. We w ill charge you penalty Three Thousand Dollars ($3,000.00). Nonresident and
and interest if you underestimat e or fail to pay the expected corporate partners can only claim net operating losses based
tax due. You do not need to f ile an extension if you w ill be on the percentage of business conducted in the City of Port
claiming a refund. Huron in the loss year.
Declaration and Payment of Estimated Tax
A partnership electing to pay the tax must make estimated
tax payments every year that the partnership’ s total city tax
w ill exceed $100.00. To make estimated payments, f ile
Form PH-1040ES, Declarat ion of Estimated Tax.
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