HOUSE BILL No. 5992


     May 2, 2002, Introduced by Reps. DeRossett and Cassis and referred to the Committee on Tax Policy.


        A bill to amend 1933 PA 167, entitled

   "General sales tax act,"

   by amending section 3 (MCL 205.53), as amended by 1980 PA 164.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             Sec. 3.  (1) If a person engages or continues in a business

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        for which a privilege tax is imposed by this act, the person

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        shall, under rules the department prescribes, apply for and

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        obtain from the department  , upon the payment of a registration

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        fee of $1.00,  a license to engage in and to conduct that busi-

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        ness for the current tax year.  When the department considers it

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        necessary in order to secure the collection of the tax or if an

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        applicant taxpayer has at any time failed, refused, or neglected

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        to pay any tax or interest or penalty upon a tax  ,  or has

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        attempted to evade the payment of any tax or interest or penalty

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        upon a tax by means of petition in bankruptcy, or if applicant


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        taxpayer is a corporation and the department has reason to

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        believe that the management or control of the corporation is

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        under persons who have failed to pay any tax or interest or pen-

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        alty upon a tax  within the purview of this section  UNDER THIS

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        ACT, the department shall require a surety bond payable to the

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        state of Michigan, upon which the applicant or taxpayer shall be

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        the obligor, in the sum of not less than $1,000.00 nor more than

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        $25,000.00.  ,  THE SURETY BOND SHALL BE conditioned that the

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        applicant or taxpayer shall comply with this act and shall

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        promptly file true reports and pay the taxes, interest, and pen-

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        alties provided for or required by this act.  , which  THE bonds

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        shall be approved as to the amount and surety by the department.

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        The applicant or taxpayer may in lieu of the surety bond deposit

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        a sum of money with the department in an amount  as  the depart-

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        ment  shall determine,  DETERMINES to guarantee the payment of

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        the tax, interest, and penalty and compliance with this act.  ,

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        but  HOWEVER, the amount determined by the department shall not

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        exceed the estimated tax payable during a 1-year period.  The

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        applicant or taxpayer shall be licensed to engage in and conduct

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        the business.  The department may require the applicant or tax-

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        payer to furnish other and further bond as it considers necessary

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        within the limits in this section,  on the giving of 30 days'

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        AFTER GIVING A 30-DAY notice in writing.  The license shall be

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        renewed annually  upon the condition that  IF the taxpayer  shall

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        pay the registration fee and  PAYS the tax accrued to the state

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        under this act.  A person shall not engage or continue in a

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        business taxable under this act without securing a license.  A



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        person, firm, or corporation engaged solely in industrial

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        processing or agricultural producing under this act and who makes

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        no sales at retail within the meaning of this act  shall  IS not

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         be  required to have a license.

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             (2) The REVENUE commissioner or  a deputy commissioner des-

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        ignated by the commissioner  HIS OR HER DESIGNEE, after notice

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        and hearing, may suspend the license of a person who violates or

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        fails to comply with this act or a rule promulgated by the

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         commissioner or a deputy commissioner designated by the commis-

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        sioner pursuant to  DEPARTMENT UNDER this act.  The REVENUE com-

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        missioner or  a deputy commissioner designated by the

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        commissioner  HIS OR HER DESIGNEE may restore licenses after

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        suspension.  If a person engages in business taxable under this

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        act while his or her license is in suspension, the tax imposed

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        under this act  nevertheless shall be  IS imposed and  be  pay-

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        able with respect to that business.

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             (3) A person who engages in any business in this state

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         which  THAT is taxable under this act and who fails to secure

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        from the REVENUE commissioner or  a deputy commissioner desig-

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        nated by the commissioner  HIS OR HER DESIGNEE a license to

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        engage in that business  , as required in this act,  or who con-

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        tinues to engage in business after the license has expired or was

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        suspended by the REVENUE commissioner or  a deputy commissioner

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        designated by the commissioner,  HIS OR HER DESIGNEE is guilty of

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        a misdemeanor  ,  punishable by a fine of not more than $1,000.00

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         ,  or imprisonment for not more than 1 year, or both.





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