SB-0243, As Passed Senate, March 29, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 243

 

 

March 15, 2017, Introduced by Senators SCHMIDT, STAMAS, HORN, HANSEN, KOWALL, KNEZEK, HILDENBRAND and MEEKHOF and referred to the Committee on Economic Development and International Investment.

 

 

     A bill to amend 1967 PA 281, entitled

 

"Income tax act of 1967,"

 

by amending section 711 (MCL 206.711), as amended by 2016 PA 158,

 

and by adding section 51f.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 51f. (1) In addition to the distributions under sections

 

51 and 51d, from the revenue collected from the tax levied under

 

section 51 an amount equal to that portion of the withholding tax

 

capture revenues attributable to certified new jobs and due to be

 

paid to an authorized business pursuant to a written agreement

 

entered into under chapter 8D of the Michigan strategic fund act,

 

1984 PA 270, MCL 125.2090g to 125.2090j, shall be deposited each

 

state fiscal year into the good jobs for Michigan fund created in

 

section 90j of the Michigan strategic fund act, 1984 PA 270, MCL

 

125.2090j.


     (2) As used in this section, "authorized business", "certified

 

new jobs", "withholding tax capture revenues", and "written

 

agreement" mean those terms as defined in section 90g of the

 

Michigan strategic fund act, 1984 PA 270, MCL 125.2090g.

 

     Sec. 711. (1) Every person required by this part to deduct and

 

withhold taxes for a tax year on income other than distributive

 

share of income from a flow-through entity shall furnish to the

 

person who received the income a statement in duplicate on or

 

before January 31 of the succeeding year of the total income paid

 

during the tax year and the amount deducted or withheld. However,

 

if employment is terminated before the close of a calendar year by

 

a person that goes out of business or permanently ceases to exist,

 

then the statement required by this subsection shall be issued

 

within 30 days after the last compensation, winnings, or payoff of

 

a winning ticket is paid. A duplicate of a statement made pursuant

 

to this section and an annual reconciliation return, MI-W3, shall

 

be filed with the department by February 28 of the succeeding year

 

except that a person that goes out of business or permanently

 

ceases to exist shall file the statement and the annual

 

reconciliation return within 30 days after going out of business or

 

permanently ceasing to exist. For tax years that begin before July

 

1, 2016, a flow-through entity that was required to withhold taxes

 

on distributive shares of business income shall file an annual

 

reconciliation return with the department no later than the last

 

day of the second month following the end of the flow-through

 

entity's federal tax year. The department may require a flow-

 

through entity to file an annual business income information return


with the department on the due date, including extensions, of its

 

annual federal information return.

 

     (2) Every person required by this part to deduct or withhold

 

taxes shall make a return or report in form and content and at

 

times as prescribed by the department. An employer that has entered

 

into an agreement with a community college pursuant to chapter 13

 

of the community college act of 1966, 1966 PA 331, MCL 389.161 to

 

389.166, and is required to deduct or withhold taxes from

 

compensation and make payments to a community college pursuant to

 

the agreement for a portion of those taxes withheld shall, for as

 

long as the agreement remains in effect, delineate in the return or

 

report required under this subsection between the amount deducted

 

or withheld and paid to the state and that amount paid to a

 

community college. An employer that has entered into a written

 

agreement pursuant to the good jobs for Michigan program created

 

under section 90h of the Michigan strategic fund act, 1984 PA 270,

 

MCL 125.2090h, shall, for as long as the written agreement remains

 

in effect, delineate in the return or report required under this

 

subsection the portion of those taxes withheld and paid to the

 

state that are attributable to certified new jobs.

 

     (3) Every person who receives income subject to withholding

 

under this part shall furnish to the person required by this part

 

to deduct and withhold taxes information required to make an

 

accurate withholding. A person who receives income subject to

 

withholding under this part shall file with the person required by

 

this part to deduct and withhold taxes revised information within

 

10 days after a decrease in the number of exemptions or a change in


status from a nonresident to a resident. The person who receives

 

income subject to withholding under this part may file revised

 

information when the number of exemptions increases or when a

 

change in status occurs from that of a resident of this state to a

 

nonresident of this state. Revised information shall not be given

 

retroactive effect for withholding purposes. A person required by

 

this part to deduct and withhold taxes shall rely on this

 

information for withholding purposes unless directed by the

 

department to withhold on some other basis. If a person who

 

receives income subject to withholding under this part fails or

 

refuses to furnish information, the person required by this part to

 

deduct and withhold taxes shall withhold at the full rate of tax

 

from the person's income subject to withholding under this part.

 

     Enacting section 1. This amendatory act takes effect 180 days

 

after the date it is enacted into law.