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.