SB-0028, As Passed Senate, June 29, 2011

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 28

     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 19 (MCL 205.19), as amended by 2002 PA 657.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 19. (1) All remittances of taxes administered by this act

shall be made to the department payable to the state of Michigan by

bank draft, check, cashier's check, certified check, money order,

cash, or electronic funds transfer. The money received shall be

credited as provided by law. A remittance other than cash or

electronic funds transfer shall not be a final discharge of

liability for the tax assessed and levied until the instrument

remitted has been honored. The department may accept major credit

cards or debit cards, or both, for payment. For taxes paid by

credit or debit card, or both, the department may add a processing

fee; however, the fee shall not exceed the charges that the state

incurs because of the use of the credit or debit card, or both.

     (2) For reporting periods beginning after August 31, 1991, a

taxpayer other than a city or a county who paid in the immediately

preceding calendar year an average of $40,000.00 or more per month

in income tax withholding pursuant to the income tax act of 1967,

1967 PA 281, MCL 206.1 to 206.532, 206.713, shall deposit Michigan

income tax withholding either in the same manner and according to

the same schedule as deposits of federal income tax withholding or

in another manner that has been approved by the department.

     (3) For failure to remit a tax administered by this act with a

negotiable remittance, the following penalty may be added in

addition to any other penalties imposed by this act:

     (a) For notices of intent to assess issued on or before

February 28, 2003, 25% of the tax due.

     (b) For notices of intent to assess issued after February 28,

2003, $50.00.

     (4) The department may require that all money collected by the

taxpayer for taxes administered by this act that has not been paid

to the department of treasury is public money and the property of

this state, and shall be held in trust in a separate account and

fund for the sole use and benefit of this state until paid over to

the department. of treasury.

     (5) For tax years after the 1995 tax year for which taxes are

collected under an agreement entered into pursuant to section 9 of

chapter 1 of the city income tax act, 1964 PA 284, MCL 141.509, if

a taxpayer pays, when filing his or her annual return, an amount

less than the sum of the declared tax liability under the city

income tax act, 1964 PA 284, MCL 141.501 to 141.787, and the

declared tax liability under the income tax act of 1967, 1967 PA

281, MCL 206.1 to 206.532, 206.713, and if there is no indication

of the allocation of payment between the tax liabilities against

which the payment should be applied, the amount paid shall first be

applied against the taxpayer's tax liability under the city income

tax act, 1964 PA 284, MCL 141.501 to 141.787, and any remaining

amount of the payment shall be applied to the taxpayer's tax

liability under the income tax act of 1967, 1967 PA 281, MCL 206.1

to 206.532. 206.713. The taxpayer's designation of a payee on a

payment is not a dispositive determination of the allocation of

that payment under this subsection.