SENATE BILL No. 402

 

 

April 24, 2003, Introduced by Senator EMERSON and referred to the Committee on Finance.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1967 PA 281, entitled                                             

                                                                                

    "Income tax act of 1967,"                                                   

                                                                                

    by amending section 365 (MCL 206.365), as amended by 1996                   

                                                                                

    PA 448.                                                                     

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 365.  (1) Every employer, flow-through entity, casino                  

                                                                                

2   licensee, and race meeting licensee and track licensee required             

                                                                                

3   by this act to deduct and withhold taxes for a tax year on                  

                                                                                

4   compensation, share of income available for distribution,                   

                                                                                

5   winnings, or payoff on a winning ticket shall furnish to each               

                                                                                

6   employee, nonresident member, or person with winnings or a payoff           

                                                                                

7   on a winning ticket subject to withholding under this act on or             

                                                                                

8   before January 31 of the succeeding year a statement in duplicate           

                                                                                

9   of the total compensation, share of income available for                    

                                                                                

10  distribution, winnings, or payoff on a winning ticket paid during           

                                                                                


                                                                                

1   the tax year and the amount deducted or withheld, or, if                    

                                                                                

2   employment is terminated before the close of a calendar year by             

                                                                                

3   an employer, flow-through entity, casino licensee, and race                 

                                                                                

4   meeting licensee and track licensee who goes out of business or             

                                                                                

5   permanently ceases to be an employer, flow-through entity, casino           

                                                                                

6   licensee, and race meeting licensee and track licensee in this              

                                                                                

7   state, within 30 days after the last payment of compensation,               

                                                                                

8   share of income available for distribution, winnings, or payoff             

                                                                                

9   on a winning ticket.  A duplicate of a statement made pursuant to           

                                                                                

10  this section and an annual reconciliation return, MI-W3, shall be           

                                                                                

11  filed with the department by February 28 of the succeeding year             

                                                                                

12  except that an employer, flow-through entity, casino licensee,              

                                                                                

13  and race meeting licensee and track licensee who goes out of                

                                                                                

14  business or permanently ceases to be an employer, flow-through              

                                                                                

15  entity, casino licensee, and race meeting licensee and track                

                                                                                

16  licensee shall file the statement and the annual reconciliation             

                                                                                

17  return within 30 days after going out of business or permanently            

                                                                                

18  ceasing to be an employer, flow-through entity, casino licensee,            

                                                                                

19  and race meeting licensee and track licensee.                               

                                                                                

20      (2) Every employer, flow-through entity, casino licensee, and               

                                                                                

21  race meeting licensee and track licensee required by this act to            

                                                                                

22  deduct or withhold taxes from compensation, share of income                 

                                                                                

23  available for distribution, winnings, or payoff on a winning                

                                                                                

24  ticket shall make a return or report in form and content and at             

                                                                                

25  times as prescribed by the department.                                      

                                                                                

26      (3) Every employee, nonresident member, or person with                      

                                                                                

27  winnings or a payoff on a winning ticket subject to withholding             


                                                                                

1   under this act shall furnish to his or her employer, flow-through           

                                                                                

2   entity, casino licensee, and race meeting licensee and track                

                                                                                

3   licensee information required for the employer, flow-through                

                                                                                

4   entity, casino licensee, and race meeting licensee and track                

                                                                                

5   licensee to make an accurate withholding.  An employee,                     

                                                                                

6   nonresident member, or person with winnings or a payoff on a                

                                                                                

7   winning ticket subject to withholding under this act shall file             

                                                                                

8   with his or her employer, flow-through entity, casino licensee,             

                                                                                

9   and race meeting licensee and track licensee revised information            

                                                                                

10  within 10 days after a decrease in the number of exemptions or a            

                                                                                

11  change in status from a nonresident to a resident.  An employee             

                                                                                

12  shall file revised information with his or her employer within 10           

                                                                                

13  days after the employee completes the residency requirements                

                                                                                

14  under section 31(11)(d), and when a change of status occurs from            

                                                                                

15  resident of a renaissance zone to nonresident of a renaissance              

                                                                                

16  zone.  Within 10 days after an employer receives revised                    

                                                                                

17  information from an employee who completes the residency                    

                                                                                

18  requirements under section 31(11)(d), the employer shall forward            

                                                                                

19  a copy of that revised information to the department.  The                  

                                                                                

20  employee, nonresident member, or person with winnings or a payoff           

                                                                                

21  on a winning ticket subject to withholding under this act may               

                                                                                

22  file revised information when the number of exemptions increases            

                                                                                

23  or when a change in status occurs from that of a resident of this           

                                                                                

24  state to a nonresident of this state.  Revised information shall            

                                                                                

25  not be given retroactive effect for withholding purposes.  An               

                                                                                

26  employer, flow-through entity, casino licensee, and race meeting            

                                                                                

27  licensee and track licensee shall rely on this information for              


                                                                                

1   withholding purposes unless directed by the department to                   

                                                                                

2   withhold on some other basis.  If an employee, nonresident                  

                                                                                

3   member, or person with winnings or a payoff on a winning ticket             

                                                                                

4   subject to withholding under this act fails or refuses to furnish           

                                                                                

5   information, the employer, flow-through entity, casino licensee,            

                                                                                

6   and race meeting licensee and track licensee shall withhold the             

                                                                                

7   full rate of tax from the employee's total compensation, the                

                                                                                

8   nonresident member's share of income available for distribution,            

                                                                                

9   or the winnings of a person with winnings or a payoff on a                  

                                                                                

10  winning ticket subject to withholding under this act.  As used in           

                                                                                

11  this subsection, "renaissance zone" means a renaissance zone                

                                                                                

12  designated pursuant to the Michigan renaissance zone act,  Act              

                                                                                

13  No. 376 of the Public Acts of 1996, being sections 125.2681 to              

                                                                                

14  125.2696 of the Michigan Compiled Laws  1996 PA 376, MCL 125.2681           

                                                                                

15  to 125.2696.                                                                

                                                                                

16      Enacting section 1.  This amendatory act takes effect                       

                                                                                

17  October 1, 2003.                                                            

                                                                                

18      Enacting section 2.  This amendatory act does not take                      

                                                                                

19  effect unless Senate Bill No. 404                                           

                                                                                

20                          of the 92nd Legislature is enacted into             

                                                                                

21  law.