Public Act 198 of 2010

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• Introduced by Sen. Nancy Cassis (R) on October 6, 2009, to authorize a 60 day delinquent tax payment amnesty period, during which all criminal and civil penalties would be waived for having in the past failed to file or pay income or other state tax, or for making an excessive claim for a refund. To get the waiver a taxpayer would have to make full payment of the tax and interest due, either in a lump sum or through an installment plan. If back taxes are not paid during this period, a 25 percent penalty would be tacked on to the balance.
  • Referred to the Senate Finance Committee on October 6, 2009.
  • Substitute offered in the Senate on October 13, 2009, to replace the previous version of the bill with one that establishes the time period for the tax amnesty. It tie-bars the bill to several other bills also (see Jacobs amendment for details). The substitute passed by voice vote in the Senate on October 13, 2009.
  • Amendment offered by Sen. Gilda Jacobs (D) on October 13, 2009, to eliminate the tie-bars in this bill to Senate Bills 1, 69, 838 and 4514. With the te-bar, this bill cannot become law unless those ones do also. Those bills would phase-out the Michigan Business Tax surcharge, raise maximum earnings caps that limits eligibility for a lower small business MBT rate, and suspend an increase in the Earned Income Tax Credit. The amendment failed 15 to 21 in the Senate on October 13, 2009.
    Who Voted "Yes" and Who Voted "No"
• Passed 24 to 12 in the Senate on October 13, 2009, to authorize a delinquent tax payment amnesty period of up to 60 days and ending Dec. 31, 2009, during which all criminal and civil penalties would be waived for having in the past failed to file or pay income or other state tax, or for making an excessive claim for a refund. To get the waiver a taxpayer would have to make full payment of the tax and interest due, either in a lump sum or through an installment plan. If back taxes are not paid during this period, a 25 percent penalty would be tacked on to the balance.
  Who Voted "Yes" and Who Voted "No"
• Received in the House on October 13, 2009.
  • Referred to the House Tax Policy Committee on October 13, 2009.
  • Substitute offered by Rep. Fred Durhal, Jr. (D) on September 21, 2010, to replace the previous version of the bill with one that revises details but does not change the substance as previously described. The substitute passed by voice vote in the House on September 21, 2010.
  • Amendment offered by Rep. Jim Stamas (R) on September 21, 2010, to authorize hiring collection agencies to go after delinquent taxpayers who would get a commission based on how much they collect, with higher commissions if they collect more from taxpayers. The amendment failed by voice vote in the House on September 21, 2010.
  • Amendment offered by Rep. Mark Meadows (D) on September 21, 2010, to authorize hiring collection agencies to go after delinquent taxpayers after the amnesty period. These agencies (referred to as "bounty hunters" by amendment opponents) would get a commission based on how much they collect. The amendment passed by voice vote in the House on September 21, 2010.
• Passed 58 to 49 in the House on September 21, 2010, to open a delinquent tax payment amnesty period from May 15 to June 30, 2011, during which all criminal and civil penalties would be waived for having failed in the past to file or pay income or other state tax, or for making an excessive claim for a refund. To get the waiver a taxpayer would have to make full payment of the tax plus interest, either in a lump sum or through an installment plan. Delinquent taxpayers who fail to take advantage would be subect to additional penalties after the amnesty ends, and collection agencies would be hired on a commission basis to go after delinquent taxpayers. This is one of the one-time revenue sources proposed to close the gap between expected revenue and desired spending (the “deficit”) in the fiscal year that begins Oct. 1, 2010.
  Who Voted "Yes" and Who Voted "No"
• Received in the Senate on September 22, 2010.
  • Amendment offered by Sen. Nancy Cassis (R) on September 22, 2010, to strip out the provision added by the House that would authorize hiring collection agencies to go after delinquent taxpayers who would get a commission based on how much they collect. The amendment passed by voice vote in the Senate on September 22, 2010.
• Passed 33 to 4 in the Senate on September 22, 2010, to open a delinquent tax payment amnesty period from May 15 to June 30, 2011, during which all criminal and civil penalties would be waived for having failed in the past to file or pay income or other state tax, or for making an excessive claim for a refund. To get the waiver a taxpayer would have to make full payment of the tax plus interest, either in a lump sum or through an installment plan. Delinquent taxpayers who fail to take advantage would be subect to additional penalties. This is one of the one-time revenue sources proposed to close the gap between expected revenue and desired spending (the “deficit”) in the fiscal year that begins Oct. 1, 2010.
  Who Voted "Yes" and Who Voted "No"
• Received in the House on September 22, 2010.
• Passed 57 to 48 in the House on September 22, 2010, to concur with the Senate-passed version of the bill, which stripped out the House provision authorizing collection agencies to go after delinquent taxpayers on a commission basis.
  Who Voted "Yes" and Who Voted "No"
• Signed by Gov. Jennifer Granholm on October 5, 2010.