HB 6079

HOUSE BILL NO. 6079
A bill to amend 1933 PA 167, entitled
"General sales tax act,"
by amending sections 6 and 25 (MCL 205.56 and 205.75),
section 6 as amended by 2014 PA 425 and section 25 as amended by 2025 PA 17,
and by adding section 18a.
the people of the state of michigan enact:
Sec. 6. (1) Each taxpayer, unless
except as otherwise provided by law or
as otherwise required pursuant to under subsection
(2), (4), or (5), on or before the twentieth day of each month shall make out a
return for the preceding month on a form prescribed by the department showing
the entire amount of all sales and gross proceeds of his or her the taxpayer's
business, the allowable deductions, and the amount of tax for which he or she the taxpayer is
liable. The taxpayer shall also transmit the return, together with a remittance
for the amount of the tax, to the department on or before the twentieth day of
that month.
(2) Each taxpayer
that had a total tax liability after subtracting the tax payments made to the
secretary of state under this act or the use tax act, 1937 PA 94, MCL 205.91 to
205.111, or after subtracting the tax credits available under section 6a, in the
immediately preceding calendar year of $720,000.00 or more shall remit to the
department, by an electronic funds transfer method approved by the department
on or before the twentieth day of the month, an amount equal to the following:
(a) Beginning
January 1, 1999 through December 31, 2013, 50% of the taxpayer's liability
under this act for the same month in the immediately preceding calendar year,
or 50% of the actual liability for the month being reported, whichever is less,
plus a reconciliation payment equal to the difference between the tax liability
determined for the immediately preceding month minus the amount of tax
previously paid for that month. Additionally, the seller shall remit to the
department, by an electronic funds transfer method approved by the department
on or before the last day of the month, an amount equal to 50% of the
taxpayer's liability under this act for the same month in the immediately
preceding calendar year, or 50% of the actual liability for the month being
reported, whichever is less.
(b) Beginning
January 1, 2014, 75% of the taxpayer's liability under this act in the
immediately preceding month or 75% of the taxpayer's liability for the same
month in the immediately preceding calendar year, whichever is less, plus a
reconciliation payment equal to the difference between the tax liability
determined for the immediately preceding month minus the amount of tax
previously paid for that month. Payment remitted to the department by
electronic funds transfer may include as a single payment any amount due under
section 6 of the use tax act, 1937 PA 94, MCL 205.96.
(3) The tax imposed
under this act shall accrue to this state on the last day of the month in which
the sale is incurred.
(4) The department,
if necessary to insure payment of the tax or to provide a more efficient
administration, may require the filing of returns and payment of the tax for
other than monthly periods.
(5) A taxpayer who
is a materialperson may at the option of the taxpayer include the amount of all
taxable sales and gross proceeds from materials furnished to an owner,
contractor, subcontractor, repairperson, or consumer on a credit sale basis for
the purpose of making an improvement to real property in his or her the taxpayer's
return in the first quarterly return due following the date in which the
materialperson made the credit sale to the owner, contractor, subcontractor,
repairperson, or consumer. Notwithstanding subsections (1) through (3), a
materialperson may at the option of the taxpayer file quarterly returns for a
credit sale only as determined by the department. As used in this subsection: , "credit
(a) "Credit sale"
means an extension of credit for the sale of taxable goods by a seller other
than a credit card sale. ; and "materialperson"
(b) "Materialperson" means a person who that provides materials for the improvement of real
property, who that has
registered with and has demonstrated to the department that he or she the person is
primarily engaged in the sale of lumber and building material related products,
precast concrete products, or conduit or fitting products used in the
collection, conveyance, or distribution of water or sewage to owners,
contractors, subcontractors, repairpersons, or consumers, and who that is
authorized to file a construction lien upon real property and improvements
under the construction lien act, 1980 PA 497, MCL 570.1101 to 570.1305.
(6) If a due date
falls on a Saturday, Sunday, state holiday, or legal banking holiday, the taxes
are due on the next succeeding business day.
(7) Beginning October 1, 2027, each taxpayer shall, in a form as
prescribed by the department under section 18a, separately submit a report on
the amount of the remittance that is attributable to parts and accessories of
motor vehicles with the taxpayer's return required under this section.
Sec. 18a. (1) Not
later than March 31, 2027, the department shall do all of the following:
(a) Issue a revenue administrative bulletin that defines what tangible
personal property falls within the category of parts and accessories of motor
vehicles.
(b) Develop a separate line item, form, or schedule for taxpayers to
separately report the amount of sales tax attributable to the category of parts
and accessories of motor vehicles.
(2) Not later than 90 days after the department issues the revenue
bulletin required under subsection (1), a taxpayer must implement a system to
identify and assign a unique identifier to those taxable goods and products at
the point of sale that fall within the category of parts and accessories of
motor vehicles.
(3) Beginning October 1, 2027, taxpayers shall separately report and
remit the sales tax collected on parts and accessories of motor vehicles in a
form as prescribed by the department in the same manner as required under
section 6.
Sec. 25. (1) All money received and collected under this act
must be deposited by the department in the state treasury to the credit of the
general fund, except as otherwise provided in this section.
(2) Fifteen percent
of the collections of the tax imposed at a rate of 4% must be distributed to
cities, villages, and townships pursuant to the Glenn Steil state revenue
sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921.
(3) Sixty percent
of the collections of the tax imposed at a rate of 4% must be deposited in the
state school aid fund and distributed as provided by law. In addition, all of
the collections of the tax imposed at the additional rate of 2% approved by the
electors on March 15, 1994 must be deposited in the state school aid fund.
(4) Except as otherwise provided in this subsection, Through September 30, 2027, not less than 27.9% of
25% of the collections of the general sales tax imposed at a rate of 4%
directly or indirectly on fuels sold to propel motor vehicles upon highways, on
the sale of motor vehicles, and on the sale of the parts and accessories of motor
vehicles by new and used car businesses, used car businesses, accessory dealer
businesses, and gasoline station businesses as classified by the department
must be deposited each year into the comprehensive transportation fund. For the fiscal year ending September 30, 2021 only, the
amount deposited into the comprehensive transportation fund under this
subsection must be reduced by $18,000,000.00 and that $18,000,000.00 must be
deposited into the transportation administration collection fund.Beginning October 1, 2027, 25% of the collections of the
general sales tax imposed at a rate of 4% directly or indirectly on fuels sold
to propel motor vehicles upon highways, on the sale of motor vehicles, and on
the sale of the parts and accessories of motor vehicles by new and used car
businesses, used car businesses, accessory dealer businesses, gasoline station
businesses, and warehouse clubs and supercenters as classified by the
department and including all sales reported and remitted under section 18a(3) must
be deposited each year into the comprehensive transportation fund.
(5) Beginning
October 1, 2016 and the first day of each calendar quarter thereafter, an
amount equal to the collections for the calendar quarter that is 2 calendar
quarters immediately preceding the current calendar quarter of the tax imposed
under this act at the additional rate of 2% approved by the electors on March
15, 1994 from the sale at retail of aviation fuel must be distributed as
follows:
(a) An amount equal
to 35% of the collections of the tax imposed at a rate of 2% on the sale at
retail of aviation fuel must be deposited in the state aeronautics fund and
must be expended, on appropriation, only for those purposes authorized in the
aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.1 to 259.208.
(b) An amount equal
to 65% of the collections of the tax imposed at a rate of 2% on the sale at
retail of aviation fuel must be deposited in the qualified airport fund and
must be expended, on appropriation, only for those purposes authorized under
section 35 of the aeronautics code of the state of Michigan, 1945 PA 327, MCL
259.35.
(6) The department
shall, on an annual basis, reconcile the amounts distributed under subsection
(5) during each fiscal year with the amounts actually collected for a
particular fiscal year and shall make any necessary adjustments, positive or
negative, to the amounts to be distributed for the next successive calendar
quarter that begins January 1. The state treasurer or the state treasurer's
designee shall annually provide to the operator of each qualified airport a
report of the reconciliation performed under this subsection. The
reconciliation report is subject to the confidentiality restrictions and
penalties provided in section 28(1)(f) of 1941 PA 122, MCL 205.28.
(7) An amount equal
to the collections of the tax imposed at a rate of 4% under this act from the
sale at retail of computer software must be deposited in the Michigan health
initiative fund created in section 5911 of the public health code, 1978 PA 368,
MCL 333.5911, and must be considered in addition to, and is not intended as a
replacement for any other money appropriated to the department of health and
human services. The funds deposited in the Michigan health initiative fund on
an annual basis must not be less than $9,000,000.00 or more than
$12,000,000.00.
(8) In addition to
the money deposited in the state school aid fund under subsection (3), from the
collections of the tax imposed at a rate of 4% under this act, an amount equal
to the sum of the following, as determined by the department, must be deposited
into the state school aid fund:
(a) All revenue
lost to the state school aid fund as a result of the exemption under section
4a(1)(u).
(b) All revenue
lost to the state school aid fund as a result of the exemption under section
4ee. A person that claims an exemption under section 4ee shall report the sales
price of the data center equipment as that term is defined in section 4ee and
any other information necessary to determine the amount of revenue lost to the
state school aid fund as a result of the exemption under section 4ee annually
on a form at the time and in a manner prescribed by the department. The report
required under this subdivision must not include any remittance for tax, and
does not constitute a return or otherwise alleviate any obligations under
section 6.
(c) All revenue
lost to the state school aid fund as a result of the exclusion under section
1(1)(d)(xv).
(d) All revenue
lost to the state school aid fund as a result of both of the following:
(i) The exemption under section 4gg.
(ii) The exemption under section 4gg of the
use tax act, 1937 PA 94, MCL 205.94gg.
(9) The balance in
the state general fund shall be disbursed only on an appropriation or
appropriations by the legislature.
(10) As used in
this section:
(a) "Aviation
fuel" means fuel as that term is defined in section 4 of the aeronautics
code of the state of Michigan, 1945 PA 327, MCL 259.4.
(b)
"Comprehensive transportation fund" means the comprehensive
transportation fund created in section 10b of 1951 PA 51, MCL 247.660b.
(c) "Qualified
airport" means that term as defined in section 109 of the aeronautics code
of the state of Michigan, 1945 PA 327, MCL 259.109.
(d) "Qualified
airport fund" means the qualified airport fund created in section 34(2) of
the aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.34.
(e) "State
aeronautics fund" means the state aeronautics fund created in section
34(1) of the aeronautics code of the state of Michigan, 1945 PA 327, MCL
259.34.
(f) "State
school aid fund" means the state school aid fund established in section 11
of article IX of the state constitution of 1963.
(g)
"Transportation administration collection fund" means the
transportation administration collection fund created in section 810b of the
Michigan vehicle code, 1949 PA 300, MCL 257.810b.