May 22, 2013, Introduced by Reps. Barnett, Shirkey and Farrington and referred to the Committee on Tax Policy.
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. If a refund
for taxes imposed under part 2 of the income tax act of 1967, 1967
PA 281, MCL 206.601 to 206.699, is not paid within 90 days after
the claim is filed or 90 days after the date established by law for
filing the return, whichever is later, in addition to the interest
rate described in section 23, the state disbursing authority shall
pay an additional monthly interest rate of 3% per annum calculated
by the department in the same manner described in section 23.
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.