INCOME TAX REFUND: DIRECT DEPOSIT H.B. 5761 (H-1): FLOOR ANALYSIS
House Bill 5761 (Substitute H-1 as reported without amendment) Sponsor: Representative Rolund Jersevic
House Committee: Tax Policy Senate Committee: Finance
The bill would amend the Single Business Tax Act to provide that for the 1997 tax year and thereafter, a taxpayer who was due a refund of single business tax could request a direct deposit of the refund to a financial institution located in the United States. The taxpayer would have to complete a direct deposit form prescribed by the Department of Treasury, and attach the form to the taxpayer’s annual return.
The Department would have to comply with a request unless the request was incomplete or defective in a manner that precluded the Department from honoring the request. If the Department did not honor the request, it would have to issue a warrant, as provided under the revenue Act, and at the same time provide the taxpayer with a written explanation including the specific reason for not honoring the taxpayer’s request for direct deposit.
The Department would have to develop and make available a direct deposit form to provide for the direct deposit of a refund.
Proposed MCL 208.79 Legislative Analyst: G. Towne
The fiscal impact of House Bills 5760 (H-2) and 5761 (H-1) is indeterminate. The Department of Treasury would have to develop a new system in order to honor the requests of taxpayers who chose direct deposit of tax refunds. According to the Department, this could result in increased costs because such a system would have to be updated and cross-checked every year due to the variability of taxpayers. To date, approximately 3.5 million taxpayers have received income tax refunds in 1996 and 39,275 have received single business tax refunds.
Date Completed: 12-10-96 Fiscal Analyst: M. Ortiz
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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.