March 14, 2007, Introduced by Senators BIRKHOLZ, THOMAS, GARCIA and BROWN and referred to the Committee on Finance.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending sections 437 and 440 (MCL 206.437 and 206.440), section
437 as added by 2005 PA 249 and section 440 as amended by 2005 PA
160, and by adding sections 430 and 431.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 430. (1) Except as otherwise provided under this
subsection, for the 2008 tax year and each tax year after the 2008
tax year, the department shall establish and utilize a separate
contributions schedule that incorporates each contribution
designation authorized under this chapter that remains in effect
and available for each tax year and shall revise the state
individual income tax return form to include a separate line for
the total contribution designations made under the separate
contributions schedule. The contribution designations authorized
under sections 437 and 440 shall remain on the first page of the
state individual income tax return for the 2008 and 2009 tax years,
but shall be incorporated into the contributions schedule for the
2010 tax year and shall remain on the schedule until the
contribution designation expires by law or is otherwise no longer
available as determined by the department pursuant to subsection
(2).
(2) The department shall establish a trigger mechanism for the
removal of contribution designations authorized under this chapter
from the contributions schedule. The mechanism shall be based on a
minimum amount of funds as prescribed by the department that is
required to be collected pursuant to the contribution designation
for the immediately preceding tax year or other time period as
prescribed by the department. If the funds collected for a
contribution designation authorized under this chapter do not
satisfy the requirements prescribed by the department, then that
contribution may no longer be available and the department may
cease to include that contribution designation on the contributions
schedule.
(3) A contribution designation that is enacted after the
effective date of the amendatory act that added this section shall
be incorporated as soon as practical on the contributions schedule,
and each new contribution designation shall be listed on the
schedule in alphabetical order.
Sec. 431. (1) For the 2008 tax year and each tax year after
the 2008 tax year, an individual may designate in a manner and form
as prescribed by the department pursuant to section 430 on his or
her annual return that a contribution of $5.00, $10.00, or more of
his or her refund be credited to the Amanda's fund for breast
cancer research created in the Amanda's fund for breast cancer
research act. If an individual's refund is not sufficient to make a
contribution under this section, the individual may designate a
contribution amount and that contribution amount shall be added to
the individual's tax liability for the tax year.
(2) Notwithstanding any other allocations or disbursements
required by this act, each year that the contribution designation
under this section is in effect, an amount equal to the cumulative
designation made under this section, less the amount appropriated
to the department to implement this section, shall be appropriated
from the general fund and distributed to the department responsible
for administering the Amanda's fund for breast cancer research
created in the Amanda's fund for breast cancer research act and
shall be used solely for the purposes of that fund.
(3) Money appropriated pursuant to an appropriations act as
required by law in accordance with this section to the department
responsible for administering the Amanda's fund for breast cancer
research shall be in addition to any other allocation or
appropriation and is intended to enhance appropriations from the
general fund and not to replace or supplant those appropriations.
Sec. 437. (1) For the 2006 tax year and each tax year after
the 2006 tax year and before January 1, 2010, an individual may
designate on his or her annual return that a contribution of $2.00
or more of his or her refund, and for tax years beginning on and
after January 1, 2010, an individual may designate on his or her
annual return that a contribution of $5.00, $10.00, or more of his
or her refund, be credited to the Michigan higher education
assistance authority created in section 1 of 1960 PA 77, MCL
390.951, for the children of veterans tuition grant program created
in
the children of veterans tuition grant program act, 2005 PA 248,
MCL 390.1341 to 390.1346. If an individual's refund is not
sufficient to make a contribution under this section, the
individual may designate a contribution amount and that
contribution amount shall be added to the individual's tax
liability for the tax year.
(2) The tax designation authorized in this section shall be
clearly and unambiguously printed on the first page of the state
individual income tax return forms, if practical. Effective January
1, 2010, the contribution designation authorized in this section is
no longer required to be printed on the first page of the state
individual income tax return but shall be incorporated into the
contributions schedule created by the department pursuant to
section 430 and shall remain on the schedule until the contribution
designation expires or is otherwise no longer available.
(3) Notwithstanding any other allocations or disbursements
required by this act, each year that the contribution designation
under this section is in effect, an amount equal to the cumulative
contributions made under this section shall be appropriated from
the general fund to the children of veterans tuition grant program
of the Michigan higher education assistance authority, and the
funds shall be distributed for programs allowed under the children
of veterans tuition grant act, 2005 PA 248, MCL 390.1341 to
390.1346. No money from the contributions made pursuant to this
section shall be used for the purpose of administering this
section.
Sec. 440. (1) Effective for the tax year beginning January 1,
1982 and before January 1, 2005, an individual may designate on his
or her annual return that a contribution of $2.00 or more of his or
her refund and for tax years beginning on and after January 1,
2005, an individual may designate on his or her annual return that
a contribution of $5.00, $10.00, or more of his or her refund be
credited to the children's trust fund created in 1982 PA 249, MCL
21.171 to 21.172. If a taxpayer's refund is not sufficient to make
a contribution under this section, the taxpayer may designate a
contribution amount and that contribution amount shall be added to
the taxpayer's tax liability for the tax year.
(2) The contribution designation authorized in this section
shall be clearly and unambiguously printed on the first page of the
state individual income tax return. Effective January 1, 2010, the
contribution designation authorized under this section is no longer
required to be printed on the first page of the state individual
income tax return but shall be incorporated into the contributions
schedule created by the department pursuant to section 430 and
shall remain on the schedule until the contribution designation
expires or is otherwise no longer available.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 348.
of the 94th Legislature is enacted into law.