HB-4760, As Passed House, October 9, 2013

SUBSTITUTE FOR

HOUSE BILL NO. 4760

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 1993 PA 14.

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.

(3) 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 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. 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 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.

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,