Bill Text: MI SB0936 | 2019-2020 | 100th Legislature | Enrolled
Bill Title: Sales tax; collections; collection of sales tax for certain businesses affected by a declared emergency; delay. Amends sec. 6 of 1933 PA 167 (MCL 205.56) & adds sec. 6d.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Vetoed) 2020-07-22 - Vetoed By Governor 07/08/2020 [SB0936 Detail]
Download: Michigan-2019-SB0936-Enrolled.html
state of michigan
100th Legislature
Regular session of 2020
Introduced by Senators
Runestad and VanderWall
ENROLLED SENATE BILL No. 936
AN ACT to amend 1933 PA 167, entitled “An act
to provide for the raising of additional public revenue by prescribing certain
specific taxes, fees, and charges to be paid to the state for the privilege of
engaging in certain business activities; to provide, incident to the
enforcement thereof, for the issuance of licenses to engage in such
occupations; to provide for the ascertainment, assessment and collection
thereof; to appropriate the proceeds thereof; and to prescribe penalties for
violations of the provisions of this act,” by amending section 6 (MCL 205.56),
as amended by 2014 PA 425, and by adding section 6d.
The People of the State of Michigan enact:
Sec. 6. (1) Each taxpayer, except as otherwise
provided by law or as otherwise required under
subsection (2), (4), or (5), on or before the
twentieth day of each month shall make out a return for the preceding month on
a form prescribed by the department showing the entire amount of all sales and
gross proceeds of the taxpayer’s business,
the allowable deductions, and the amount of tax for which the taxpayer is liable. Except as otherwise provided in
section 6d, the taxpayer shall also transmit the
return, together with a remittance for the amount of the tax, to the department
on or before the twentieth day of that month.
(2) Except as otherwise provided in section 6d,
each taxpayer that had a total tax liability
after subtracting the tax payments made to the secretary of state under this
act or the use tax act, 1937 PA 94, MCL 205.91 to 205.111, or after subtracting
the tax credits available under section 6a, in the immediately preceding
calendar year of $720,000.00 or more shall remit to the department, by an
electronic funds transfer method approved by the department on or before the
twentieth day of the month, an amount equal to the following:
(a) Beginning January 1, 1999
through December 31, 2013, 50% of the taxpayer’s liability under this act for
the same month in the immediately preceding calendar year, or 50% of the actual
liability for the month being reported, whichever is less, plus a
reconciliation payment equal to the difference between the tax liability
determined for the immediately preceding month minus the amount of tax
previously paid for that month. Additionally, the seller shall remit to the
department, by an electronic funds transfer method approved by the department
on or before the last day of the month, an amount equal to 50% of the taxpayer’s
liability under this act for the same month in the immediately preceding
calendar year, or 50% of the actual liability for the month being reported,
whichever is less.
(b) Beginning January 1,
2014, 75% of the taxpayer’s liability under this act in the immediately
preceding month or 75% of the taxpayer’s liability for the same month in the
immediately preceding calendar year, whichever is less, plus a reconciliation
payment equal to the difference between the tax liability determined for the
immediately preceding month minus the amount of tax previously paid for that
month. Payment remitted to the department by electronic funds transfer may
include as a single payment any amount due under section 6 of the use tax act,
1937 PA 94, MCL 205.96.
(3) The tax imposed under
this act shall accrue to this state on the last day of the month in which the
sale is incurred.
(4) Subject to section 6d, the department, if necessary to ensure payment of the tax or to provide a more efficient
administration, may require the filing of returns and payment of the tax for
other than monthly periods.
(5) A taxpayer who is a
materialperson may at the option of the taxpayer include the amount of all
taxable sales and gross proceeds from materials furnished to an owner,
contractor, subcontractor, repairperson, or consumer on a credit sale basis for
the purpose of making an improvement to real property in the taxpayer’s return
in the first quarterly return due following the date in which the
materialperson made the credit sale to the owner, contractor, subcontractor,
repairperson, or consumer. Notwithstanding subsections (1) to (3), a materialperson may at the option of the
taxpayer file quarterly returns for a credit sale only as determined by the
department. As used in this subsection:
(a) “Credit sale”
means an extension of credit for the sale of taxable goods by a seller other
than a credit card sale.
(b) “Materialperson” means a person that provides
materials for the improvement of real property, that has registered with and has demonstrated to the
department that the person is primarily
engaged in the sale of lumber and building material related products, precast
concrete products, or conduit or fitting products used in the collection,
conveyance, or distribution of water or sewage to owners, contractors,
subcontractors, repairpersons, or consumers, and that is authorized to file a construction lien upon real
property and improvements under the construction lien act, 1980 PA 497, MCL
570.1101 to 570.1305.
(6) If a due date falls on a
Saturday, Sunday, state holiday, or legal banking holiday, the taxes are due on
the next succeeding business day.
Sec.
6d. (1) A qualified taxpayer that files a monthly return under this act may
defer payment of qualified taxes by remitting them in installments as follows:
(a) Taxes otherwise due for March, April, and
May must be paid in 6 equal installments with 1 installment due on each of the
following dates:
(i) June 22, 2020.
(ii) July 20, 2020.
(iii) August 20, 2020.
(iv) September 21, 2020.
(v) October 20, 2020.
(vi) November 20, 2020.
(b) Taxes otherwise due for June 2020 must be
paid in 5 equal installments with 1 installment due on each of the following
dates:
(i) July 20, 2020.
(ii) August 20, 2020.
(iii) September 21, 2020.
(iv) October 20, 2020.
(v) November 20, 2020.
(c) Taxes otherwise due for July 2020 must be
paid in 4 equal installments with 1 installment due on each of the following
dates:
(i) August 20, 2020.
(ii) September 21, 2020.
(iii) October 20, 2020.
(iv) November 20, 2020.
(d) Taxes otherwise due for August 2020 must
be paid in 3 equal installments with 1 installment due on each of the following
dates:
(i) September 21, 2020.
(ii) October 20, 2020.
(iii) November 20, 2020.
(2) A qualified taxpayer that files a
quarterly return under this act may defer payment of qualified taxes by
remitting them in installments as follows:
(a) Taxes
otherwise due for March of quarter 1 of 2020 must be paid in 3 equal
installments with 1 installment due on each of the following dates:
(i) June 22, 2020.
(ii) September 21, 2020.
(iii) November 20, 2020.
(b) Taxes otherwise due for quarter 2 of 2020
must be paid in 3 equal installments with 1 installment due on each of the
following dates:
(i) July 20, 2020.
(ii) September 21, 2020.
(iii) November 20, 2020.
(c) Taxes otherwise due for July and August of
quarter 3 of 2020 must be paid in 2 equal monthly installments with 1
installment due on each of the following dates:
(i) October 20, 2020.
(ii) November 20, 2020.
(3) If a qualified taxpayer intends to defer
payment of qualified taxes otherwise due under this act for August 2020, the
qualified taxpayer shall submit an estimate of the taxes to be deferred for
August 2020 to the department not later than July 31, 2020 on a form prescribed
by the department.
(4) Penalties and interest must not be added
to qualified taxes remitted pursuant to this section.
(5) As used in this section:
(a) “COVID-19 executive order” means an
executive order issued by the governor in response to the coronavirus
(COVID-19) public health emergency.
(b) “Qualified taxes” means the taxes
otherwise due under this act from a qualified taxpayer for March, April, May,
June, July, and August 2020.
(c) “Qualified taxpayer” means a taxpayer
whose business has been negatively impacted as the result of a COVID-19
executive order. A taxpayer’s business is considered negatively impacted by a
COVID-19 executive order if 1 or more of the following apply:
(i) As a result of a COVID-19
executive order, the taxpayer’s place of business is closed or restricted to
ingress, egress, use, and occupancy by members of the public.
(ii) The taxpayer’s business
involves assemblages of people that are prohibited by a COVID-19 executive
order.
Secretary of the Senate
Clerk of the House of Representatives
Approved___________________________________________
____________________________________________________
Governor
