HB-4002, As Passed Senate, October 3, 2013

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4002

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 this state; to prescribe certain

powers and duties of the state treasurer; to establish the

collection duties of certain other state departments for money or

accounts owed to this state; 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,"

by amending section 30 (MCL 205.30), as amended by 1993 PA 14.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 30. (1) The department shall credit or refund an

overpayment of taxes; taxes, penalties, and interest erroneously

assessed and collected; and taxes, penalties, and interest that are

found unjustly assessed, excessive in amount, or wrongfully

collected with interest at the rate calculated under section 23 for

deficiencies in tax payments.

(2) A taxpayer who paid a tax that the taxpayer claims is not

due may petition the department for refund of the amount paid

within the time period specified as the statute of limitations in

section 27a. If a tax return reflects an overpayment or credits in

excess of the tax, the declaration of that fact on the return

constitutes a claim for refund. If the department agrees the claim

is valid, the amount of overpayment, penalties, and interest shall

be first applied to any known liability as provided in section 30a,

and the excess, if any, shall be refunded to the taxpayer or

credited, at the taxpayer's request, against any current or

subsequent tax liability.

(3) The department shall certify a refund to the state

disbursing authority who shall pay the amount out of the proceeds

of the tax in accordance with the accounting laws of the state.

Interest at the rate calculated under section 23 for deficiencies

in tax payments shall be added to the refund commencing 45 days

after the claim is filed or 45 days after the date established by

law for the filing of the return, whichever is later. Interest on

refunds intercepted and applied as provided in section 30a shall

cease as of the date of interception. Refunds for amounts of less

than $1.00 shall not be paid.

(4) Beginning January 1, 2014, in addition to and separate

from the interest added to a refund under subsection (3), for

refunds for taxes imposed under part 1 of the income tax act of

1967, 1967 PA 281, MCL 206.1 to 206.532, the state disbursing

authority shall add interest to refunds that are not paid within 1

of the following dates for the applicable tax year:

(a) May 1, for returns received by the department on or before

March 1 of the applicable tax year.

(b) Sixty days from the date the return was received by the

department for returns received by the department after March 1 of

the applicable tax year.

(5) Interest described in subsection (4) shall be paid at a

rate of 3% per annum, calculated from the date the original return

was due under section 315(1) of the income tax act of 1967, 1967 PA

281, MCL 206.315, and until the refund is paid, if all of the

following conditions are met:

(a) The refund is due on an original return which was timely

filed under section 315(1) of the income tax act of 1967, 1967 PA

281, MCL 206.315.

(b) The refund is not adjusted by the department.

for audit by the department.

(d) The return is complete for processing purposes with no

calculation errors and contains all required information as

prescribed by the department under section 315(1)(d) of the income

tax act of 1967, 1967 PA 281, MCL 206.315, including any state and

federal returns, forms, or schedules necessary to process the

return.

(e) The taxpayer who has filed a complete return under

subdivision (d) has complied with the department's request, if any,

for additional documentation or information within 30 days of that

request.

(f) No portion of the refund is subject to interception under

section 30a.

(g) The amount to be refunded is more than $1.00.