June 14, 2005, Introduced by Rep. Sheen and referred to the Committee on Tax Policy.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending sections 191 and 352 (MCL 206.191 and 206.352), section
352 as added by 1996 PA 568.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
191. (1) If the taxpayer's only activities within in
this state consist of sales and do not include owning or renting
real
estate property or tangible personal property and whose
dollar
volume of if the taxpayer's gross sales made during the tax
year
within the in this state is not in excess of $100,000.00
the
taxpayer may elect for that year do not exceed $100,000.00 for
tax years that begin before January 1, 2004 or $110,000.00 for tax
years that begin after December 31, 2003, the taxpayer may elect to
report and pay the tax imposed under this act for the tax year
using whichever of the following methods results in the lesser tax
liability:
(a)
To report and pay a tax on net income arrived at by
multiplying
Multiplying total sales in
this state for the taxable
tax year by the ratio of net income from operations to total sales
as
reported on his the
taxpayer's federal income tax return
for
the
same taxable tax year. ; or
(b)
Report and pay a tax of 2/5 of 1% on Multiply total
sales
in this state , whichever method reflects the lesser tax
liability
by 2/5 of 1%.
(2)
The election under subsection (1) is not available for any
taxable
tax year for which the taxpayer is required to file a
consolidated
return. is required.
Sec. 352. (1) For the 1997 tax year and each tax year after
the 1997 tax year, a taxpayer who is due a refund determined under
section
30 of Act No. 122 of the Public Acts of 1941, being
section
205.30 of the Michigan Compiled Laws 1941 PA 122, MCL
205.30, may request a direct deposit of that refund to a financial
institution of the taxpayer's choice that is located in the United
States by completing a direct deposit form prescribed by the
department and attaching the completed form to the taxpayer's
annual return.
(2) The department shall comply with a request under this
section unless the request is incomplete or defective in a manner
that precludes the department from honoring the request. If the
department does not honor the request, the department shall issue a
warrant,
as provided in Act No. 122 of the Public Acts of 1941,
being
sections 205.1 to 205.31 of the Michigan Compiled Laws 1941
PA 122, MCL 205.1 to 205.31, and at the same time provide the
taxpayer with a written explanation including the specific reason
for not honoring the taxpayer's request for direct deposit.
(3) The department shall develop and make available the direct
deposit form prescribed under subsection (1) to provide for direct
deposit of a refund due to a taxpayer.