SB-0845, As Passed House, December 1, 2007

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 845

     A bill to amend 1937 PA 94, entitled

"Use tax act,"

(MCL 205.91 to 205.111) by adding section 3e.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 3e. Beginning December 1, 2007, all of the following

apply:

     (a) A person that provides 1 or more of the services subject

to the tax under this act pursuant to section 3d shall not collect

the tax from any person that receives a service subject to the tax

under this act pursuant to section 3d. Prior to the effective date

of the amendatory act that added this section, if a person that

provides 1 or more of the services subject to the tax under this

act pursuant to section 3d collects the tax from a person that

Senate Bill No. 845 (H-3) as amended December 1, 2007

receives a service subject to the tax under this act pursuant to

section 3d, the tax shall be [returned to the person that received the

 service or] remitted to the department and the

person that received the service may file an application for a

refund of the tax. The application shall be in a form prescribed by

the department.

     (b) A person that provides 1 or more of the services subject

to the tax under this act pursuant to section 3d is not liable for

any failure collect the tax levied under this act on services

subject to the tax under section 3d. However, if a person that

provides 1 or more of the services subject to the tax under this

act pursuant to section 3d collects the tax from a person that

receives a service subject to the tax under this act pursuant to

section 3d prior to the effective date of the amendatory act that

added this section, the tax shall be remitted as provided in

subdivision (a). If a person that provides 1 or more of the

services subject to the tax under this act pursuant to section 3d

fails to remit any tax collected from a person that receives a

service subject to the tax under this act pursuant to section 3d

prior to the effective date of the amendatory act that added this

section, the person that collected the tax is subject to the

penalties provided in section 16 [unless the tax collected was returned

 to the person that received the service].

     (c) The department of treasury shall not do any of the

following:

     (i) Collect the tax levied under this act from a person that

provides 1 or more of the services subject to the tax under this

act pursuant to section 3d. However, if a person that provides 1 or

more of the services subject to the tax under this act pursuant to

Senate Bill No. 845 (H-3) as amended December 1, 2007

section 3d collects the tax from a person that receives a service

subject to the tax under this act pursuant to section 3d prior to

the effective date of the amendatory act that added this section

and does not [return or] remit that tax as provided in subdivision (a),

 the

department shall collect that tax. A person that receives a service

subject to the tax under this act pursuant to section 3d and who

paid that tax may apply for a refund of that tax as provided in

subdivision (a).

     (ii) Except as otherwise provided in subdivision (b), penalize

a person that provides 1 or more of the services subject to the tax

under this act pursuant to section 3d for failure to collect[, return,]

or

remit the tax levied under this act on services subject to the tax

under section 3d.