HOUSE BILL No. 4249

 

February 9, 2005, Introduced by Reps. Pastor and Kahn and referred to the Committee on Tax Policy.

 

     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 the state; to prescribe certain powers

and duties of the state treasurer; 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 30 (MCL 205.30), amended by 1993 PA 14.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 30. (1) The department shall credit or refund an

 

overpayment of taxes; taxes, penalties, and interest erroneously


 

assessed and collected; and taxes, penalties, and interest that are

 

found unjustly assessed, excessive in amount, or wrongfully

 

collected with interest at the rate calculated under section 23 for

 

deficiencies in tax payments.

 

     (2) A taxpayer who paid a tax that the taxpayer claims is not

 

due may petition the department for refund of the amount paid

 

within the time period specified as the statute of limitations in

 

section 27a. If a tax return reflects an overpayment or credits in

 

excess of the tax, the declaration of that fact on the return

 

constitutes a claim for refund. If the department agrees the claim

 

is valid, the amount of overpayment, penalties, and interest shall

 

be first applied to any known liability as provided in section 30a,

 

and the excess, if any, shall be refunded to the taxpayer or

 

credited, at the taxpayer's request, against any current or

 

subsequent tax liability.

 

     (3) The department shall certify a refund to the state

 

disbursing authority who shall pay the amount out of the proceeds

 

of the tax in accordance with the accounting laws of the state.

 

Interest at the rate calculated under section 23 for deficiencies

 

in tax payments shall be added to the refund commencing 45 days

 

after the claim is filed.  or 45 days after the date established by

 

law for the filing of the return, whichever is later.  Interest on

 

refunds intercepted and applied as provided in section 30a shall

 

cease as of the date of interception. Refunds for amounts of less

 

than $1.00 shall not be paid.