Bill Text: MI HB5191 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Taxation; administration; calculation of interest penalties related to certain credits; provide for. Amends sec. 30 of 1941 PA 122 (MCL 205.30).
Spectrum: Moderate Partisan Bill (Republican 26-3)
Status: (Passed) 2016-07-13 - Assigned Pa 267'16 With Immediate Effect [HB5191 Detail]
Download: Michigan-2015-HB5191-Introduced.html
HOUSE BILL No. 5191
December 17, 2015, Introduced by Reps. Lauwers, Brett Roberts, Glardon, Johnson, Rendon, Victory, Hughes, Jenkins, Garcia, Pagel, Cole, Leutheuser, Barrett, Brunner, Lyons, Vaupel, Kelly, Aaron Miller, Canfield, LaFontaine, Smiley, LaVoy, McBroom, Franz, Outman, Sheppard, Price, Potvin and Lucido and referred to the Committee on Agriculture.
A bill to amend 1941 PA 122, entitled
"An act to establish the revenue collection duties of the
department of treasury; to prescribe its powers and duties as the
revenue collection agency of this state; to prescribe certain
powers and duties of the state treasurer; to establish the
collection duties of certain other state departments for money or
accounts owed to this state; to regulate the importation, stamping,
and disposition of certain tobacco products; to provide for the
transfer of powers and duties now vested in certain other state
boards, commissions, departments, and offices; to prescribe certain
duties of and require certain reports from the department of
treasury; to provide procedures for the payment, administration,
audit, assessment, levy of interests or penalties on, and appeals
of taxes and tax liability; to prescribe its powers and duties if
an agreement to act as agent for a city to administer, collect, and
enforce the city income tax act on behalf of a city is entered into
with any city; to provide an appropriation; to abolish the state
board of tax administration; to prescribe penalties and provide
remedies; and to declare the effect of this act,"
by amending section 30 (MCL 205.30), as amended by 2014 PA 424.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 30. (1) The department shall credit or refund an
overpayment of taxes; taxes, penalties, and interest erroneously
assessed and collected; and taxes, penalties, and interest that are
found unjustly assessed, excessive in amount, or wrongfully
collected with interest at the rate calculated under section 23 for
deficiencies in tax payments.
(2) A taxpayer who paid a tax that the taxpayer claims is not
due may petition the department for refund of the amount paid
within the time period specified as the statute of limitations in
section 27a. If a tax return reflects an overpayment or credits in
excess of the tax, the declaration of that fact on the return
constitutes a claim for refund. If the department agrees the claim
is valid, the amount of overpayment, penalties, and interest shall
be first applied to any known liability as provided in section 30a,
and the excess, if any, shall be refunded to the taxpayer or
credited, at the taxpayer's request, against any current or
subsequent tax liability. Claims for refunds, other than those made
under part 1 of the income tax act of 1967, 1967 PA 281, MCL 206.1
to 206.532, that have not been approved, denied, or adjusted within
1 year of the date received may be treated as denied at the
election of the taxpayer, and may be appealed by the taxpayer in
accordance with section 22.
(3)
The For refunds approved
before January 1, 2016, the
department shall certify a refund to the state disbursing authority
who shall pay the amount out of the proceeds of the tax in
accordance with the accounting laws of the state. Interest at the
rate calculated under section 23 for deficiencies in tax payments
regarding those refunds shall be added to the refund commencing 45
days after the claim is filed or 45 days after the date established
by law for the filing of the return, whichever is later. For
refunds approved after December 31, 2015, the department shall
notify the state disbursing authority of the amount of a refund to
be issued and the state disbursing authority shall pay the amount
out of the proceeds of the tax in accordance with the accounting
laws of this state. Interest at the rate calculated under section
23 for deficiencies in tax payments for refunds approved after
December 31, 2015 shall be added to the refund commencing from the
date established by law for filing an original return, regardless
of any extensions, or the date of overpayment, whichever is later,
until a date preceding the date of the refund by not more than 7
days. No interest shall be paid upon any refund if the overpayment
of tax is refunded within 45 days from the date the original return
is filed or 45 days from the date of overpayment, whichever is
later. For purposes of this subsection, "date of overpayment" means
the date that the tax payment to be refunded was received by the
department. Interest on refunds intercepted and applied as provided
in section 30a shall cease as of the date of interception. Refunds
for amounts of less than $1.00 shall not be paid.
(4) Beginning January 1, 2014, in addition to and separate
from the interest added to a refund under subsection (3), for
refunds for taxes imposed under part 1 of the income tax act of
1967, 1967 PA 281, MCL 206.1 to 206.532, the state disbursing
authority shall add interest to refunds that are not paid within 1
of the following dates for the applicable tax year:
(a) May 1, for returns received by the department on or before
March 1 of the applicable tax year.
(b) Sixty days from the date the return was received by the
department for returns received by the department after March 1 of
the applicable tax year.
(5) Interest described in subsection (4) shall be paid at a
rate of 3% per annum, calculated from the date the original return
was due under section 315(1) of the income tax act of 1967, 1967 PA
281,
MCL 206.315, and until the refund is paid, a date preceding
the date of the refund by not more than 7 days, if all of the
following conditions are met:
(a) The refund is due on an original return which was timely
filed under section 315(1) of the income tax act of 1967, 1967 PA
281, MCL 206.315.
(b) The refund is not adjusted by the department.
(c) The return is not subject to section 27a(3) or (4) except
for audit by the department.
(d) The return is complete for processing purposes with no
calculation errors and contains all required information as
prescribed by the department under section 315(1)(d) of the income
tax act of 1967, 1967 PA 281, MCL 206.315, including any state and
federal returns, forms, or schedules necessary to process the
return.
(e) The taxpayer who has filed a complete return under
subdivision (d) has complied with the department's request, if any,
for additional documentation or information within 30 days of that
request.
(f) No portion of the refund is subject to interception under
section 30a.
(g) The amount to be refunded is more than $1.00.
(6) Beginning January 1, 2015, in addition to and separate
from the interest added to a refund under subsection (3), for
refunds for taxes imposed under the Michigan business tax act, 2007
PA 36, MCL 208.1101 to 208.1601, the state disbursing authority
shall add interest to refunds that are not paid within 90 days
after the claim is approved or 90 days after the date established
by law for filing the return, whichever is later. Interest
described in this subsection shall be paid at a rate of 3% per
annum for each day the refund is not issued within the time frame
required in this subsection if all of the following conditions are
met:
(a) The refund is claimed on an original return which was
timely filed under section 505(1) of the Michigan business tax act,
2007 PA 36, MCL 208.1505.
(b) The refund is not adjusted by the department.
(c) The refund is not claimed by a taxpayer filing as a
unitary business group.
(d) The return is not subject to section 27a(3) or (4) except
for audit by the department.
(e) The return is complete for processing purposes with no
calculation errors and contains all required information as
prescribed by the department under section 507 or 509 of the
Michigan business tax act, 2007 PA 36, MCL 208.1507 and 208.1509,
including any state and federal returns, forms, or schedules
necessary to process the return.
(f) The taxpayer who has filed a complete return under
subdivision (e) has complied with the department's request, if any,
for additional documentation or information within 30 days of that
request.
(g) No portion of the refund is subject to interception under
section 30a.
(h) The amount to be refunded is more than $10.00.
(7) Beginning January 1, 2016, the interest calculations in
subsections (3), (4), and (5) also apply to refunds of credits
authorized under section 36109 of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.36109.
