HB-5357, As Passed House, December 6, 2005
SUBSTITUTE FOR
HOUSE BILL NO. 5357
A bill to amend 1941 PA 122, entitled
"An act to establish the revenue collection duties of the
department of treasury; to prescribe its powers and duties as the
revenue collection agency of the state; to prescribe certain powers
and duties of the state treasurer; to regulate the importation,
stamping, and disposition of certain tobacco products; to provide
for the transfer of powers and duties now vested in certain other
state boards, commissions, departments and offices; to prescribe
certain duties of and require certain reports from the department
of treasury; to provide procedures for the payment, administration,
audit, assessment, levy of interests or penalties on, and appeals
of taxes and tax liability; to prescribe its powers and duties if
an agreement to act as agent for a city to administer, collect, and
enforce the city income tax act on behalf of a city is entered into
with any city; to provide an appropriation; to abolish the state
board of tax administration; to prescribe penalties and provide
remedies; and to declare the effect of this act,"
(MCL 205.1 to 205.31) by adding section 21a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 21a. (1) In the course of an audit conducted under the
authority of section 21, a taxpayer has the right to claim credit
amounts as an offset against debit amounts determined in the audit.
A taxpayer that is the subject of a use tax audit of its purchases
is entitled to offset the use tax liability determined in that
audit by the amount of sales tax paid annually under the general
sales tax act, 1933 PA 167, MCL 205.51 to 205.78, by it to a
Michigan vendor, or use tax paid annually by it to a vendor located
outside this state, on an amount of up to $5,000.00 in purchases.
(2) As used in this section, "use tax" means the tax described
in the use tax act, 1937 PA 94, MCL 205.91 to 205.111.