HOUSE BILL No. 4067

 

January 22, 2007, Introduced by Rep. Mayes and referred to the Committee on Tax Policy.

 

     A bill to amend 1933 PA 167, entitled

 

"General sales tax act,"

 

by amending section 6 (MCL 205.56), as amended by 2004 PA 173.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 6. (1) Each taxpayer, unless otherwise provided by law or

 

as required pursuant to subsection (2), (4), or (5), on or before

 

the twentieth day of each month shall make out a return for the

 

preceding month on a form prescribed by the department showing the

 

entire amount of all sales and gross proceeds of his or her

 

business, the allowable deductions, and the amount of tax for which

 

he or she is liable. The taxpayer shall also transmit the return,

 

together with a remittance for the amount of the tax, to the

 

department on or before the twentieth day of that month.

 

     (2) Beginning January 1, 1999, each taxpayer that had a total


 

tax liability after subtracting the tax payments made to the

 

secretary of state under this act or the use tax act, 1937 PA 94,

 

MCL 205.91 to 205.111, or after subtracting the tax credits

 

available under section 6a, in the immediately preceding calendar

 

year of $720,000.00 or more shall remit to the department, by an

 

electronic funds transfer method approved by the department on or

 

before the twentieth day of the month, an amount equal to 50% of

 

the taxpayer's liability under this act for the same month in the

 

immediately preceding calendar year, or 50% of the actual liability

 

for the month being reported, whichever is less, plus a

 

reconciliation payment equal to the difference between the tax

 

liability determined for the immediately preceding month minus the

 

amount of tax previously paid for that month. Additionally, the

 

seller shall remit to the department, by an electronic funds

 

transfer method approved by the department on or before the last

 

day of the month, an amount equal to 50% of the taxpayer's

 

liability under this act for the same month in the immediately

 

preceding calendar year, or 50% of the actual liability for the

 

month being reported, whichever is less.

 

     (3) The tax imposed under this act shall accrue to this state

 

on the last day of the month in which the sale is incurred.

 

     (4) The department, if necessary to insure payment of the tax

 

or to provide a more efficient administration, may require the

 

filing of returns and payment of the tax for other than monthly

 

periods.

 

     (5) A taxpayer who is a materialperson may at the option of

 

the taxpayer include the amount of all taxable sales and gross


 

proceeds from materials furnished to an owner, contractor,

 

subcontractor, repairperson, or consumer on a credit sale basis for

 

the purpose of making an improvement to real property in his or her

 

return in the first quarterly return due following the date in

 

which the materialperson made the credit sale to the owner,

 

contractor, subcontractor, repairperson, or consumer.

 

Notwithstanding subsections (1) through (3), a materialperson may

 

at the option of the taxpayer file quarterly returns for a credit

 

sale only as determined by the department. As used in this

 

subsection, "credit sale" means an extension of credit for the sale

 

of taxable goods by a seller other than a credit card sale; and

 

"materialperson" means a person who provides materials for the

 

improvement of real property, who has registered with and has

 

demonstrated to the department that he or she is primarily engaged

 

in the sale of lumber and building material related products or

 

precast concrete products to owners, contractors, subcontractors,

 

repairpersons, or consumers, and who is authorized to file a

 

construction lien upon real property and improvements under the

 

construction lien act, 1980 PA 497, MCL 570.1101 to 570.1305.

 

     (6) If a due date falls on a Saturday, Sunday, state holiday,

 

or legal banking holiday, the taxes are due on the next succeeding

 

business day.