Bill Text: MI HB5806 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Income tax; forms; annual return form; revise to include questions about city income tax liability. Amends sec. 471 of 1967 PA 281 (MCL 206.471).

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2012-09-12 - Referred To Second Reading [HB5806 Detail]

Download: Michigan-2011-HB5806-Introduced.html

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HOUSE BILL No. 5806

 

August 15, 2012, Introduced by Reps. Howze, Stallworth, Durhal, Rutledge, Cavanagh, Ananich, Santana, Nathan, Talabi, Jackson, Barnett, Gilbert, Hobbs, Damrow, Stanley, Hovey-Wright, McMillin, Haveman, Haugh, Potvin, Liss, Womack, Kandrevas, Irwin, Wayne Schmidt, Lori, Stapleton, Tlaib, Constan, Lyons, Pscholka, Forlini, Knollenberg, Price, Opsommer, Horn, Crawford, Rogers, Walsh, Townsend and Meadows and referred to the Committee on Tax Policy.

 

     A bill to amend 1967 PA 281, entitled

 

"Income tax act of 1967,"

 

by amending section 471 (MCL 206.471), as amended by 2011 PA 38.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 471. (1) The tax imposed by this part shall be

 

administered by the department. The department shall prescribe

 

forms for use by taxpayers and may promulgate rules for all of the

 

following:

 

     (a) The maintenance by taxpayers of records, books, and

 

accounts.

 

     (b) The computation of the tax.

 

     (c) The manner and time of changing or electing accounting

 

methods and of exercising the accounting method options contained

 

in this part.

 

     (d) The making of returns, the payment of tax due, and the

 

ascertainment, assessment, and collection of the tax.

 

     (2) The rules shall follow the rulings of the United States

 

internal revenue service with respect to the federal income tax if

 

those rulings are not inconsistent with this part, and the

 

department may adopt as a part of the rules any portions of the

 

internal revenue code or rulings, in whole or in part.

 

     (3) A summary of state expenditures and revenues by major

 

category, in dollar amounts and percentage of total, for the most

 

recent state fiscal year that the information is available, shall

 

be printed in the instruction booklet accompanying each state

 

income tax return.

 

     (4) Each state income tax return shall contain a space for the

 

taxpayer to indicate the school district in which the taxpayer

 

resides.

 

     (5) The department may provide information in the instruction

 

booklet about the purchase of an annual state park motor vehicle

 

permit pursuant to part 741 of the natural resources and

 

environmental protection act, 1994 PA 451, MCL 324.74101 to

 

324.74125.324.74126.

 

     (6) In the instruction booklet that accompanies the annual

 

return required under this part, the department shall provide a

 

clear and concise listing of each credit and each deduction allowed

 

under this part and a reference to a detailed explanation.

 

     (7) The department shall post the list described in subsection

 

(6) on the department's official website.

 

     (8) Beginning with the 2013 tax year, each state income tax

 

return shall contain a space for the taxpayer to indicate all of

 

the following:

 

     (a) If he or she resides, or is employed, in a city that

 

imposes a tax under a uniform city income tax ordinance enacted and

 

approved in accordance with the city income tax act, 1964 PA 284,

 

MCL 141.501 to 141.787.

 

     (b) If the taxpayer's employer has withheld the local tax from

 

his or her compensation that is subject to the tax imposed under

 

the local ordinance.

 

     (c) If applicable, the taxpayer's local income tax liability

 

for the immediately preceding calendar year and whether that amount

 

has been paid or is still due to the city.

 

     (d) the taxpayer's local income tax liability for the current

 

tax year for which the return is filed under this part.

 

     (9) Beginning with the 2013 tax year, in the instruction

 

booklet that accompanies the annual return required under this

 

part, the department shall provide a complete list of each city in

 

this state that levies a city income tax and the rate imposed by

 

that city on residents, nonresidents, and corporations. The

 

instruction booklet shall also include a worksheet for the taxpayer

 

to calculate the amount of city income tax due to the city in which

 

he or she resides or is employed and an explanation on how and

 

where to report and remit payment, if due, to that city.