HB-4920, As Passed House, December 18, 2014HB-4920, As Passed Senate, December 17, 2014

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4920

     A bill to amend 1933 PA 167, entitled

"General sales tax act,"

by amending section 6 (MCL 205.56), as amended by 2012 PA 458.

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), (3), (4), or (5), or (6),

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 through December 31, 2013, each

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 the following:

     (a) Beginning January 1, 1999 through December 31, 2013, 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.

(b) (3) Beginning January 1, 2014, 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 75% of

the taxpayer's liability under this act in the immediately

preceding month or 75% of the taxpayer's liability for the same

month in the immediately preceding calendar year, 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. Payment

remitted to the department by electronic funds transfer may include

as a single payment any amount due under section 6 of the use tax

act, 1937 PA 94, MCL 205.96.

(3) (4) 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) (5) 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) (6) 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 (4), (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,

precast concrete products, or conduit or fitting products used in

the collection, conveyance, or distribution of water or sewage 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) (7) 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.