Bill Text: MI HB5422 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Use tax; credits and deductions; reduction of collection fee; establish. Amends sec. 4f of 1937 PA 94 (MCL 205.94f).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-09-22 - Printed Bill Filed 09/18/2009 [HB5422 Detail]
Download: Michigan-2009-HB5422-Introduced.html
HOUSE BILL No. 5422
September 17, 2009, Introduced by Rep. Meadows and referred to the Committee on Tax Policy.
A bill to amend 1937 PA 94, entitled
"Use tax act,"
by amending section 4f (MCL 205.94f), as amended by 2004 PA 172.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4f. (1) In computing the amount of tax payments required
for any month of a seller not subject to section 6(2) who collects
the tax from the purchaser under the provisions of this act, the
seller who collects the tax from a purchaser may deduct the amount
provided by subdivision (a) or (b), whichever is greater:
(a) If the tax that accrued to the state from the purchase of
tangible personal property or services during the preceding month
is remitted to the department on or before the twelfth day of the
month in which remittance is due, for taxes accrued through
September 30, 2009, 0.75% of the tax collected at a rate of 4% for
the preceding monthly period, but not to exceed $20,000.00 of the
tax collected for that month and for taxes accrued after September
30, 2009, 0.60% of the tax due at a rate of 4% for the preceding
monthly period, but not to exceed $16,000.00 of the tax due for
that month. If the tax that accrued to the state from the purchase
of tangible personal property or services during the preceding
month is remitted to the department after the twelfth day of the
month and on or before the twentieth day of the month in which
remittance is due, for taxes accrued through September 30, 2009,
0.50% of the tax collected at a rate of 4% for the preceding
monthly period, but not to exceed $15,000.00 of the tax collected
for that month and for taxes accrued after September 30, 2009,
0.40% of the tax due at a rate of 4% for the preceding monthly
period, but not to exceed $12,000.00 of the tax due for that month.
(b) The tax collected at a rate of 4% on $150.00 of taxable
purchase price for the preceding monthly period or a prorated
portion of $150.00 of the taxable purchase price for the preceding
month if the seller engaged in business for less than a month.
(2) Beginning January 1, 1999, in computing the amount of tax
levied under this act for any month, a seller who collects the tax
from the purchaser under this act and who is subject to section
6(2) may deduct from the amount of the tax paid prior to October 1,
2009, 0.50% of the tax due at a rate of 4% and from the tax paid
after September 30, 2009, 0.40% of the tax due at a rate of 4%.
(3) A deduction is not allowed under this section for payments
of taxes made to the department after the day the person is
required to pay the tax imposed by this act pursuant to section 6.
(4) If, pursuant to section 6(3), the department prescribes
the filing of returns and the payment of the tax for periods in
excess of 1 month, a seller who collects the tax from the purchaser
is entitled to a deduction from the tax collections remitted to the
department for the extended payment period that is equivalent to
the deduction allowed under subsection (1) or (2) for monthly
periods.
(5) The department may prescribe the filing of estimated
returns and annual periodic reconciliations as necessary to carry
out the purposes of this section.
(6) A seller registered under the streamlined sales and use
tax agreement may claim a deduction under this section if provided
for in the streamlined sales and use tax administration act, 2004
PA 174, MCL 205.801 to 205.833.
