Bill Text: MI SB1040 | 2013-2014 | 97th Legislature | Engrossed
Bill Title: Taxation; administration; prepayment of tax, penalty, and interest requirement as a prerequisite to filing a case regarding the assessment of tax in the Michigan court of claims; eliminate. Amends sec. 22 of 1941 PA 122 (MCL 205.22). TIE BAR WITH: SB 1038'14, SB 1039'14
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2014-11-13 - Referred To Committee On Tax Policy [SB1040 Detail]
Download: Michigan-2013-SB1040-Engrossed.html
SB-1040, As Passed Senate, November 13, 2014
SUBSTITUTE FOR
SENATE BILL NO. 1040
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 22 (MCL 205.22), as amended by 2007 PA 194.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 22. (1) A taxpayer aggrieved by an assessment, decision,
or order of the department may appeal the contested portion of the
assessment,
decision, or order to the tax tribunal within 35 60
days, or to the court of claims within 90 days after the
assessment, decision, or order. The uncontested portion of an
assessment, order, or decision shall be paid as a prerequisite to
appeal. However, an action shall be commenced in the court of
claims within 6 months after payment of the tax or an adverse
determination of the taxpayer's claim for refund, whichever is
later, if the payment of the tax or adverse determination of the
claim for refund occurred under the former single business tax act,
1975 PA 228, and before May 1, 1986.
(2) An appeal under this section shall be perfected as
provided under the tax tribunal act, 1973 PA 186, MCL 205.701 to
205.779, and rules promulgated under that act for the tax tribunal,
or chapter 64 of the revised judicature act of 1961, 1961 PA 236,
MCL 600.6401 to 600.6475, and rules adopted under that chapter for
the
court of claims. In an appeal to the court of claims, the
appellant
shall first pay the tax, including any applicable
penalties
and interest, under protest and claim a refund as part of
the
appeal.
(3) A taxpayer or the department may take an appeal by right
from a decision of the tax tribunal or the court of claims to the
court of appeals. The appeal shall be taken on the record made
before the tax tribunal or the court of claims. The taxpayer or
department may take further appeal to the supreme court in
accordance with the court rules provided for appeals to the supreme
court.
(4) The assessment, decision, or order of the department, if
not appealed in accordance with this section, is final and is not
reviewable in any court by mandamus, appeal, or other method of
direct or collateral attack.
(5) An assessment is final, conclusive, and not subject to
further challenge after 90 days after the issuance of the
assessment, decision, or order of the department, and a person is
not entitled to a refund of any tax, interest, or penalty paid
pursuant to an assessment unless the aggrieved person has appealed
the assessment in the manner provided by this section.
(6) For the 2014-2015 fiscal year, $200,000.00 is appropriated
from the general fund to the court of claims for operations due to
the anticipated increased caseload from the changes in the
amendatory act that added this subsection.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 97th Legislature are
enacted into law:
(a) Senate Bill No. 1038.
(b) Senate Bill No. 1039.
