Bill Text: MI SB0243 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Individual income tax; collections; certain revenues attributable to the good jobs for Michigan program; capture and earmark. Amends sec. 711 of 1967 PA 281 (MCL 206.711) & adds sec. 51f.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2017-09-06 - Assigned Pa 0110'17 With Immediate Effect [SB0243 Detail]
Download: Michigan-2017-SB0243-Engrossed.html
SB-0243, As Passed House, July 12, 2017
SB-0243, As Passed Senate, March 29, 2017
SENATE BILL No. 243
March 15, 2017, Introduced by Senators SCHMIDT, STAMAS, HORN, HANSEN, KOWALL, KNEZEK, HILDENBRAND and MEEKHOF and referred to the Committee on Economic Development and International Investment.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending section 711 (MCL 206.711), as amended by 2016 PA 158,
and by adding section 51f.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 51f. (1) In addition to the distributions under sections
51 and 51d, from the revenue collected from the tax levied under
section 51 an amount equal to that portion of the withholding tax
capture revenues attributable to certified new jobs and due to be
paid to an authorized business pursuant to a written agreement
entered into under chapter 8D of the Michigan strategic fund act,
1984 PA 270, MCL 125.2090g to 125.2090j, shall be deposited each
state fiscal year into the good jobs for Michigan fund created in
section 90j of the Michigan strategic fund act, 1984 PA 270, MCL
125.2090j.
(2) As used in this section, "authorized business", "certified
new jobs", "withholding tax capture revenues", and "written
agreement" mean those terms as defined in section 90g of the
Michigan strategic fund act, 1984 PA 270, MCL 125.2090g.
Sec. 711. (1) Every person required by this part to deduct and
withhold taxes for a tax year on income other than distributive
share of income from a flow-through entity shall furnish to the
person who received the income a statement in duplicate on or
before January 31 of the succeeding year of the total income paid
during the tax year and the amount deducted or withheld. However,
if employment is terminated before the close of a calendar year by
a person that goes out of business or permanently ceases to exist,
then the statement required by this subsection shall be issued
within 30 days after the last compensation, winnings, or payoff of
a winning ticket is paid. A duplicate of a statement made pursuant
to this section and an annual reconciliation return, MI-W3, shall
be filed with the department by February 28 of the succeeding year
except that a person that goes out of business or permanently
ceases to exist shall file the statement and the annual
reconciliation return within 30 days after going out of business or
permanently ceasing to exist. For tax years that begin before July
1, 2016, a flow-through entity that was required to withhold taxes
on distributive shares of business income shall file an annual
reconciliation return with the department no later than the last
day of the second month following the end of the flow-through
entity's federal tax year. The department may require a flow-
through entity to file an annual business income information return
with the department on the due date, including extensions, of its
annual federal information return.
(2) Every person required by this part to deduct or withhold
taxes shall make a return or report in form and content and at
times as prescribed by the department. An employer that has entered
into an agreement with a community college pursuant to chapter 13
of the community college act of 1966, 1966 PA 331, MCL 389.161 to
389.166, and is required to deduct or withhold taxes from
compensation and make payments to a community college pursuant to
the agreement for a portion of those taxes withheld shall, for as
long as the agreement remains in effect, delineate in the return or
report required under this subsection between the amount deducted
or withheld and paid to the state and that amount paid to a
community college. An employer that has entered into a written
agreement pursuant to the good jobs for Michigan program created
under section 90h of the Michigan strategic fund act, 1984 PA 270,
MCL 125.2090h, shall, for as long as the written agreement remains
in effect, delineate in the return or report required under this
subsection the portion of those taxes withheld and paid to the
state that are attributable to certified new jobs.
(3) Every person who receives income subject to withholding
under this part shall furnish to the person required by this part
to deduct and withhold taxes information required to make an
accurate withholding. A person who receives income subject to
withholding under this part shall file with the person required by
this part to deduct and withhold taxes revised information within
10 days after a decrease in the number of exemptions or a change in
Senate Bill No. 243 as amended July 12, 2017
status from a nonresident to a resident. The person who receives
income subject to withholding under this part may file revised
information when the number of exemptions increases or when a
change in status occurs from that of a resident of this state to a
nonresident of this state. Revised information shall not be given
retroactive effect for withholding purposes. A person required by
this part to deduct and withhold taxes shall rely on this
information for withholding purposes unless directed by the
department to withhold on some other basis. If a person who
receives income subject to withholding under this part fails or
refuses to furnish information, the person required by this part to
deduct and withhold taxes shall withhold at the full rate of tax
from the person's income subject to withholding under this part.
Enacting section 1. This amendatory act takes effect [30] days
after the date it is enacted into law.
