SENATE BILL No. 414

 

 

April 29, 2003, Introduced by Senator EMERSON and referred to the Committee on Finance.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1937 PA 94, entitled                                              

                                                                                

    "Use tax act,"                                                              

                                                                                

    by amending section 6 (MCL 205.96), as amended by 1998 PA 266.              

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 6.  (1) Every person storing, using, or consuming                      

                                                                                

2   tangible personal property or services, the storage, use, or                

                                                                                

3   consumption of which is subject to the tax imposed by this act              

                                                                                

4   when the tax was not paid to a seller, and every seller                     

                                                                                

5   collecting the tax from the purchaser, unless otherwise                     

                                                                                

6   prescribed by the department under the provisions of subsection             

                                                                                

7   (2), (3), or (4), on or before the fifteenth day of each calendar           

                                                                                

8   month shall file with the department a return for the preceding             

                                                                                

9   calendar month, in a form prescribed by the department, showing             

                                                                                

10  the price of each purchase of tangible personal property or                 

                                                                                

11  services during the preceding month, and other information the              

                                                                                


                                                                                

1   department considers necessary for the proper administration of             

                                                                                

2   this act.  At the same time, each person shall pay to the                   

                                                                                

3   department the amount of tax imposed by this act with respect to            

                                                                                

4   the purchases covered by the return.  A return shall be signed by           

                                                                                

5   the person liable for the tax or his or her duly authorized                 

                                                                                

6   agent.  If the return is prepared by a person other than the                

                                                                                

7   taxpayer, the return shall also be signed by that person and show           

                                                                                

8   his or her address.                                                         

                                                                                

9       (2) Before January 1, 1999, each seller that had a total tax                

                                                                                

10  liability after subtracting the tax payments made to the                    

                                                                                

11  secretary of state under this act or the sales tax act, 1933 PA             

                                                                                

12  167, MCL 205.51 to 205.78, or after subtracting the tax credits             

                                                                                

13  available under section 6a of the general sales tax act, 1933 PA            

                                                                                

14  167, MCL  205.6a  205.56a, in the immediately preceding calendar            

                                                                                

15  year of $720,000.00 or more on or before the eighteenth of each             

                                                                                

16  month shall remit to the department, by an electronic funds                 

                                                                                

17  transfer method approved by the commissioner of revenue, an                 

                                                                                

18  amount equal to 95% of the taxpayer's liability under this act              

                                                                                

19  for the same month in the immediately preceding calendar year, or           

                                                                                

20  95% of the actual liability for the current month being reported,           

                                                                                

21  plus a reconciliation payment equal to the difference between the           

                                                                                

22  tax liability determined for the immediately preceding month                

                                                                                

23  minus the amount of tax previously paid for that month.                     

                                                                                

24      (3) Beginning January 1, 1999, each seller that had a total                 

                                                                                

25  tax liability after subtracting the tax payments made to the                

                                                                                

26  secretary of state under this act or the sales tax act, 1933 PA             

                                                                                

27  167, MCL 205.51 to 205.78, or after subtracting the tax credits             


                                                                                

1   available under section 6a of the general sales tax act, 1933 PA            

                                                                                

2   167, MCL 205.56a, in the immediately preceding calendar year of             

                                                                                

3   $720,000.00 or more shall remit to the department, by an                    

                                                                                

4   electronic funds transfer method approved by the commissioner of            

                                                                                

5   revenue on or before the fifteenth day of the month, an amount              

                                                                                

6   equal to 50% of the taxpayer's liability under this act for the             

                                                                                

7   same month in the immediately preceding calendar year, or 50% of            

                                                                                

8   the actual liability for the month being reported, whichever is             

                                                                                

9   less, plus a reconciliation payment equal to the difference                 

                                                                                

10  between the tax liability determined for the immediately                    

                                                                                

11  preceding month minus the amount of tax previously paid for that            

                                                                                

12  month.  Additionally, the seller shall remit to the department,             

                                                                                

13  by an electronic funds transfer method approved by the                      

                                                                                

14  commissioner of revenue on or before the last day of the month,             

                                                                                

15  an amount equal to 50% of the taxpayer's liability under this act           

                                                                                

16  for the same month in the immediately preceding calendar year, or           

                                                                                

17  50% of the actual liability for the month being reported,                   

                                                                                

18  whichever is less.                                                          

                                                                                

19      (4) If considered necessary to insure payment of the tax or                 

                                                                                

20  to provide a more efficient administration, the revenue                     

                                                                                

21  commissioner may require and prescribe the filing of returns and            

                                                                                

22  payment of the tax for other than monthly periods.                          

                                                                                

23      (5) If a corporation licensed under this act fails for any                  

                                                                                

24  reason to file the required returns or to pay the tax due, any of           

                                                                                

25  its officers having control or supervision of, or charged with              

                                                                                

26  the responsibility for, making the returns and payments are                 

                                                                                

27  personally liable for the failure.  The dissolution of a                    


                                                                                

1   corporation does not discharge an officer's liability for a prior           

                                                                                

2   failure of the corporation to make a return or remit the tax                

                                                                                

3   due.                                                                        

                                                                                

4       (5)  (6)  The tax imposed under this act shall accrue to this               

                                                                                

5   state on the last day of each calendar month.                               

                                                                                

6       Enacting section 1.  This amendatory act takes effect for                   

                                                                                

7   tax years that begin on and after January 1, 2003.