HB-5434, As Passed Senate, March 9, 2004

HOUSE BILL No. 5434

January 27, 2004, Introduced by Reps. Taub, Spade, LaJoy, Garfield, Tabor, Bradstreet, Acciavatti, Milosch, Pastor, Amos, Walker, Shackleton, Meyer, Stahl, Nofs, Gaffney, Pappageorge, Emmons, Voorhees, Vander Veen, Stakoe, Newell, DeRossett, Jamnick, DeRoche, LaSata, Palsrok, Rocca, Hune, Nitz, Ward, Hoogendyk, Farhat and Palmer 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 2002 PA                

486.                                                                        

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

2   administered by the department.  The department shall prescribe             

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

4   the following:                                                              

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

6   accounts.                                                                   

7       (b) The computation of the tax.                                             

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

9   methods and of exercising the accounting method options contained           

10  in this act.                                                                

House Bill No. 5434 as amended March 3, 2004                                

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

2   ascertainment, assessment, and collection of the tax.                       

3   (2) The taxpayer shall determine whether his or her tax                     

4   return required under this act is filed electronically.  <<For the tax year that begins on or after January 1, 2003 and before January 1, 2004 only, the>>

5   department shall not require any person who prepares a tax return           

6   under this act on behalf of another person for compensation to              

7   electronically file that return.

8   (3)  (2)  The rules shall follow the rulings of the United                  

9   States internal revenue service with respect to the federal                 

10  income tax if those rulings are not inconsistent with this act,             

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

12  of the internal revenue code or rulings, in whole or in part.               

13  (4)  (3)  A summary of state expenditures and revenues by                   

14  major category, in dollar amounts and percentage of total, for              

15  the most recent state fiscal year that the information is                   

16  available, shall be printed in the instruction booklet                      

17  accompanying each state income tax return.                                  

18  (5)  (4)  Each state income tax return shall contain a space                

19  for the taxpayer to indicate the school district in which the               

20  taxpayer resides.                                                           

21  (6)  (5)  The department may provide information in the                     

22  instruction booklet about the purchase of an annual state park              

23  motor vehicle permit pursuant to part 741 of the natural                    

24  resources and environmental protection act, 1994 PA 451,                    

25  MCL 324.74101 to 324.74125.                                                 

26  (7)  (6)  In the instruction booklet that accompanies the                   

27  annual return required under this act, the department shall                 

1   provide a clear and concise listing of each credit and each                 

2   deduction allowed under this act and a reference to a detailed              

3   explanation.                                                                

4   (8)  (7)  The department shall post the list described in                   

5   subsection  (6) (7) on the department's official website.