CHANGES IN TAX LAWS - CRC TAX OUTLINE

TAX OUTLINE

TAX DESCRIPTIONS

Changes in Michigan Tax Laws, 1997 Through September 2006
		Tax Administration
1998	PA 221:	Allows the revenue commissioner to enter into voluntary disclosure agreements with certain single business taxpayers regarding the "nexus," the amount or level of presence in a state that is required before a company is subject to taxation by that state.
	PA 493:	Extended to June 30, 1999, the deadline for requesting a voluntary disclosure agreement with the Department of Treasury; provided that a person entering into a voluntary disclosure agreement must agree not to protest or seek a tax refund for the applicable period; and required the department to enter into a voluntary disclosure agreement if a person meets all of the eligibility requirements.
1999	PA 36:	Allows a local unit to determine a business or individual ineligible for Renaissance Zone tax deductions, exemptions or credits if it is substantially delinquent in payment of city income or property taxes, as defined in written policy of the local unit; also allows local units with renaissance zones to prevent the loss of a local business, taking at least 25 jobs, to renaissance zones in other local units.
	PA 139:	Permits the designation of up to nine new renaissance zones by the State Administrative Board, five additional zones by the Michigan Strategic Fund, and the modification by local governmental units of the boundaries of certain renaissance zones. Allows sub-zones to be designated in existing renaissance zones by local governmental units and tax exemptions take effect December 31st of the year of designation.
	PA 248:	Amends the General Property Tax Act to include additional information for any millage proposal. The required information includes: (1) the millage rate to be authorized, (2) revenue to be collected in the first year of the levy, (3) duration of the millage, (4) clear statement of purpose, and (5) statement of whether millage is a renewal or new millage. Additional information is required for proposals to authorize issuance of bonds.
2000	PA 244:	Provides that if a taxing unit submits a proposal to voters concerning the issuance of bonds, the imposition of a new millage, or the increase or renewal of an existing millage, the ballot must disclose each local unit of government to which the revenue from that millage has been disbursed.
	PA 281:	Amends provisions to the General Property Tax Act that address how changes in property values made by the State Tax Commission are placed on tax rolls and how any resulting increases in property taxes are to be collected.
	PA 284:	Allows a board of review to meet in July, if summer property taxes are not levied, to correct clerical errors and mutually agreed upon mistakes of fact affecting property assessments, the rate of taxation, or tax computation.
	PA 308:	Amends the Revenue Act to provide certain exceptions to the Act’s prohibition against the disclosure of any facts or information obtained in connection with the administration of a tax. In particular, it allows limited disclosure to specified officials of the "adjusted gross receipts" and "wagering tax" paid by a casino licensee licensed under the Michigan Gaming Control and Revenue Act.
	PA 364:	Allows a local tax collecting unit to levy a property tax administration fee of up to 1% of the total tax bill per parcel of property.
	PA 403:	Prescribes a tax on the sale and use of fuel in motor vehicles on public highways; provides for the collection and remittance of the tax to the State; requires the licensure of persons involved in the sale, use, and transportation of motor fuel; establishes a dyed diesel fuel program; prescribes fees; provides for exemptions from and refunds of the tax; create the "Motor Fuel Tax Evasion Prevention Fund" to fund the development of a diesel fuel enforcement program and for additional administrative costs associated with implementing the Act; and provides for the enforcement of the Act and penalties for violations.
	PA 404:	Amends the Aeronautics Code to provide that the privilege tax of three cents per gallon on all fuel sold for propelling aircraft using facilities in Michigan would have to be collected and remitted in the same manner as fuel taxes collected under the Motor Fuel Tax Act. Also provides that if a person required to register with the Department of Treasury was not registered, the person would have to pay the applicable tax imposed under the Motor Fuel Tax Act instead of the three cents per gallon privilege tax.
	PA 405:	Amends the Natural Resources and Environmental Protection Act, to require that the privilege tax imposed on gasoline and undyed diesel fuel be paid to the Department in the same manner as taxes paid under the Motor Fuel Tax. The bill also specifies that the privilege tax imposed on dyed diesel fuel would be paid to the Department by the retail distributor or another person that sold the dyed diesel fuel to a person who used it to generate power for the operation of watercraft, ORVs, and snowmobiles.
	PA 406:	Amends the Motor Carrier Fuel Tax Act to replace references to Public Act 150 of 1927 with references to the "Motor Fuel Tax Act".
2001	PA 122:	Allows the state to enter into a multistate sales and use tax agreement that would require sellers to select a method for collecting and remitting taxes already due by state law, but seldom paid.
	PA 146:	For 2001 only, permits a county (Baraga) to make effective in 2001 property tax limitations adopted by the voters at an election on August 7, 2001. In an election after April 1, a property tax limitation is effective in the next calendar year.
	PA 168:	Provides for the state to implement a 30 to 60 day tax amnesty period ending before September 30, 2002. Provides an added penalty for taxpayers failing to participate in the program and extends the period for voluntary tax disclosure agreements for some single business taxpayers.
2002	PA 267:	Allows a local assessing unit to provide for voluntary electronic filing of real or personal property statements using uniform formats prescribed by the State Tax Commission. Requires that a local tax-collecting unit accept electronic or facsimile signature using a procedure prescribed by the State Tax Commission.
	PA 457:	Eliminates the $1 registration fee for obtaining a sales tax license.
	PA 479:	Provides that unpaid property taxes levied on buildings and improvements on leased land are subject to the same collection procedures as taxes levied on personal property.
	PA 486:	Requires the Department of Treasury to include in the Income Tax instruction booklet a clear and concise explanation of each credit and deduction allowed and reference to a detailed explanation.
	PA 505:	Permits local tax-collecting units to use computerized data base systems as the tax roll for the General Property Tax, subject to approval from the State Tax Commission.
	PA 579:	Requires a corporation authorized to transact business in Michigan, that submitted a certificate of dissolution or withdrawal from the State, to request from the Department of Treasury within 60 days a certificate stating that sales, use, or income taxes were not due.
	PA 580:	Requires a corporation authorized to transact business in Michigan, that submitted a certificate of dissolution or withdrawal from the State, to request from the Department of Treasury within 60 days a certificate stating that sales, use, or income taxes were not due.
	PA 581:	Requires a corporation authorized to transact business in Michigan, that submitted a certificate of dissolution or withdrawal from the State, to request from the Department of Treasury within 60 days a certificate stating that sales, use, or income taxes were not due.
	PA 607:	Allows businesses that collect and remit the tobacco products tax to deduct the amount of bad debts. The amount deducted would have to be charged off as uncollectible on the books of the licensee.
2003	PA 23, 24, 25:	PA 23 extends provisions in the Revenue Act concerning the personal liability of certain officers to pay taxes, if a corporation is dissolved, to limited liability companies, limited liability partnerships, partnerships, and limited partnerships and their individual members, managers and partners. PAs 24 and 25 delete language in the Use Tax and Sales Tax Acts that is similar to the new language in PA 23.
	PA 92:	Requires the Department of Treasury to make available in printed and electronic form bulletins or letter rulings issued on or after August 18, 2000.
	PA 168:	Revises the statutory allocation of sales tax revenues in FY02 and FY03 to the General Revenue Sharing program by reducing the payments for FY04 below the amounts received in FY03. The change is part of an action to divert revenue sharing funds to the state's General Fund to assist in balancing the budget.
2004	PA 108:	Provides a $2.50 per parcel collection fee to be retained from the proceeds of the State Education Tax (SET) by local units of government that would not otherwise levy summer taxes and by counties collecting the SET on behalf of affected local units.
2004	PA 5: PA 6: PA 7: PA 8: PA 9: PA 10: PA 11:	Requires the Department of Treasury to allow for an informal conference on certain tax matters, to notify a taxpayer of potential refunds during an audit, and to allow a taxpayer to claim credits to offset against debits determined during an audit.
	PA 12:	Amends the General Property Tax Act to allow certain property tax assessments to be corrected during the July or December Board of Review.
	PA 174:	Allows business property tax disputes to be appealed directly to the Michigan Tax Tribunal and bypass the March Board of Review beginning with the 2007 tax year. Modifies filing deadlines.
	PA 626:	Amends the General Property Tax Act to require that $5 of the $10 fee on tax-delinquent property, and the property tax administration fee paid to the State, be deposited in the Land Reutilization Fund rather than the Delinquent Property Tax Administration Fund.
	PA 646:	Amends the General Property Tax Act to require assessors to place property eligible for state payment in lieu of taxes (PILT) on a separate assessment roll.
2007	PA 31:	Allows a local tax collecting unit to treat a solid waste fee as delinquent if the fee is included in a tax statement.
2008	PA 122:	Amends the General Property Tax Act to allow local boards of review to meet at alternative times to resolve technical errors in the assessment of property.
	PA 125, 126, 127, 128, 129:	Amends the Tax Tribunal Act to provide for the mediation of disputes before the Tribunal; allow appeals directly to the Tribunal; allow teleconferencing of hearings.

Last Updated July 22, 2008