HB-5357, As Passed Senate, January 19, 2006

 

 

 

 

 

 

 

 

 

 

 

 

SENATE 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 21b.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 21b. (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.

 

     Enacting section 1. This amendatory act takes effect October

 

1, 2006.