HOUSE BILL No. 5302

 

November 13, 2003, Introduced by Rep. Wenke 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:                      

                                                                                

1       Sec. 191.  (1) If the taxpayer's only activities  within  in                

                                                                                

2   this state consist of sales and do not include owning or renting            

                                                                                

3   real  estate  property or tangible personal property and  whose             

                                                                                

4   dollar volume of  if the taxpayer's gross sales made during the             

                                                                                

5   tax year  within the  in this state  is not in excess of                    

                                                                                

6   $100,000.00 the taxpayer may elect for that year  do not exceed             

                                                                                

7   $100,000.00 for tax years that begin before January 1, 2004 or              

                                                                                

8   $110,000.00 for tax years that begin after December 31, 2003, the           

                                                                                

9   taxpayer may elect to report and pay the tax imposed under this             

                                                                                

10  act for the tax year using whichever of the following methods               

                                                                                


                                                                                

1   results in the lesser tax liability:                                        

                                                                                

2       (a)  To report and pay a tax on net income arrived at by                    

                                                                                

3   multiplying  Multiplying total sales in this state for the                  

                                                                                

4   taxable  tax year by the ratio of net income from operations to            

                                                                                

5   total sales as reported on  his  the taxpayer's federal income              

                                                                                

6   tax return for the same  taxable  tax year.  ; or                           

                                                                                

7       (b)  Report and pay a tax of 2/5 of 1% on  Multiply total                   

                                                                                

8   sales in this state  , whichever method reflects the lesser tax             

                                                                                

9   liability  by 2/5 of 1%.                                                    

                                                                                

10      (2) The election under subsection (1) is not available for                  

                                                                                

11  any  taxable  tax year for which the taxpayer is required to file           

                                                                                

12  a consolidated return.  is required.                                        

                                                                                

13      Sec. 352.  (1) For the 1997 tax year and each tax year after                

                                                                                

14  the 1997 tax year, a taxpayer who is due a refund determined                

                                                                                

15  under section 30 of  Act No. 122 of the Public Acts of 1941,                

                                                                                

16  being section 205.30 of the Michigan Compiled Laws  1941 PA 122,            

                                                                                

17  MCL 205.30, may request a direct deposit of that refund to a                

                                                                                

18  financial institution of the taxpayer's choice that is located in           

                                                                                

19  the United States by completing a direct deposit form prescribed            

                                                                                

20  by the department and attaching the completed form to the                   

                                                                                

21  taxpayer's annual return.                                                   

                                                                                

22      (2) The department shall comply with a request under this                   

                                                                                

23  section unless the request is incomplete or defective in a manner           

                                                                                

24  that precludes the department from honoring the request.  If the            

                                                                                

25  department does not honor the request, the department shall issue           

                                                                                

26  a warrant, as provided in  Act No. 122 of the Public Acts of                

                                                                                

27  1941, being sections 205.1 to 205.31 of the Michigan Compiled               


                                                                                

1   Laws  1941 PA 122, MCL 205.1 to 205.31, and at the same time                

                                                                                

2   provide the taxpayer with a written explanation including the               

                                                                                

3   specific reason for not honoring the taxpayer's request for                 

                                                                                

4   direct deposit.                                                             

                                                                                

5       (3) The department shall develop and make available the                     

                                                                                

6   direct deposit form prescribed under subsection (1) to provide              

                                                                                

7   for direct deposit of a refund due to a taxpayer.