November 6, 2007, Introduced by Senators ALLEN, GEORGE, PAPPAGEORGE, JELINEK and GLEASON and referred to the Committee on Commerce and Tourism.
A bill to amend 1933 PA 167, entitled
"General sales tax act,"
by amending section 3 (MCL 205.53), as amended by 2004 PA 173.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
3. (1) Subject to subsection (4) subsections (4) and (5),
if a person engages or continues in a business for which a
privilege tax is imposed by this act, the person shall, under rules
the department prescribes, apply for and obtain from the department
a license to engage in and to conduct that business for the current
tax year. If the department considers it necessary in order to
secure the collection of the tax or if an applicant taxpayer has at
any time failed, refused, or neglected to pay any tax or interest
or penalty upon a tax or has attempted to evade the payment of any
tax or interest or penalty upon a tax by means of petition in
bankruptcy, or if the applicant taxpayer is a corporation and the
department has reason to believe that the management or control of
the corporation is under persons who have failed to pay any tax or
interest or penalty upon a tax under this act, the department shall
require a surety bond payable to the state of Michigan, upon which
the applicant or taxpayer shall be the obligor, in the sum of not
less than $1,000.00 nor more than $25,000.00. The surety bond shall
be conditioned that the applicant or taxpayer shall comply with
this act and shall promptly file true reports and pay the taxes,
interest, and penalties provided for or required by this act. The
bonds shall be approved as to the amount and surety by the
department. The applicant or taxpayer may in lieu of the surety
bond deposit a sum of money with the department in an amount the
department determines to guarantee the payment of the tax,
interest, and penalty and compliance with this act. However, the
amount determined by the department shall not exceed the estimated
tax payable during a 1-year period. The applicant or taxpayer shall
be licensed to engage in and conduct the business. The department
may require the applicant or taxpayer to furnish any additional
bond that it considers necessary within the limits in this section,
after giving a 30-day notice in writing. The license shall be
renewed annually if the taxpayer pays the tax accrued to this state
under this act. A person shall not engage or continue in a business
taxable under this act without securing a license. A person, firm,
or corporation engaged solely in industrial processing or
agricultural producing under this act and who makes no sales at
retail within the meaning of this act is not required to have a
license.
(2) The state treasurer or his or her designee, after notice
and hearing, may suspend the license of a person who violates or
fails to comply with this act or a rule promulgated by the
department under this act. The state treasurer or his or her
designee may restore licenses after suspension. If a person engages
in business taxable under this act while his or her license is in
suspension, the tax imposed under this act is imposed and payable
with respect to that business.
(3) A person who engages in any business in this state that is
taxable under this act and who fails to secure from the department
a license to engage in that business or who continues to engage in
business after the license has expired or was suspended by the
state treasurer or his or her designee is guilty of a misdemeanor
punishable by a fine of not more than $1,000.00 or imprisonment for
not more than 1 year, or both.
(4) A seller registered under the streamlined sales and use
tax agreement who is not otherwise obligated to obtain a sales tax
license in this state is not required to obtain a sales tax license
because of that registration.
(5) A person who engages in any business in this state that is
taxable under this act shall indicate on the application or renewal
for a license issued under this section if that person is subject
to the tobacco products tax act, 1993 PA 327, MCL 205.421 to
205.436. The state treasurer or his or her designee may suspend the
license of a person under subsection (2) if that person violates
the tobacco products tax act, 1993 PA 327, MCL 205.421 to 205.436.
If a license issued under this act is suspended under this section,
the department shall identify the name, address, and business name
of the person whose license has been suspended under this section
on the department website.