2003 House Bill 4568 / Public Act 25

Introduced in the House

April 10, 2003

Introduced by Rep. Paula Zelenko (D-50)

To increase the liablilty of members or managers of limited liability companies and partnerships to pay delinquent Michigan sales tax owed by the enterprise. This bill is one of many authorizing “revenue enhancements” which Gov. Jennifer Granholm has proposed to close a gap between state spending and expected revenue in the Fiscal Year 2003-2004 budget.

Referred to the Committee on Tax Policy

May 7, 2003

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

May 8, 2003

Substitute offered

To replace the previous version of the bill with one which requires the Department of Treasury to determine exactly which officers, members, managers, or partners were actually responsible for filing and paying the delinquent taxes. Those who did not have “control, supervision or responsibility” over such matters would not be liable.

The substitute passed by voice vote

Amendment offered by Rep. James Koetje (R-86)

To make the bill prosepective only in its effect, not retroactive.

The amendment passed by voice vote

Passed in the House 81 to 25 (details)

To increase the liablilty of members or managers of limited liability companies and partnerships to pay delinquent Michigan sales tax owed by the enterprise. This bill is one of many authorizing “revenue enhancements” which Gov. Jennifer Granholm has proposed to close a gap between state spending and expected revenue in the Fiscal Year 2003-2004 budget. Only those officers, members, managers, or partners responsible for filing and paying delinquent taxes would be liable; those who did not have “control, supervision or responsibility” over such matters would not be liable. This bill is one of many authorizing “revenue enhancements” which Gov. Jennifer Granholm has proposed to close a gap between state spending and expected revenue in the Fiscal Year 2003-2004 budget.

Received in the Senate

May 13, 2003

Referred to the Committee on Finance

June 3, 2003

Reported without amendment

With the recommendation that the bill pass.

June 5, 2003

Passed in the Senate 36 to 2 (details)

To increase the liablilty of members or managers of limited liability companies and partnerships to pay delinquent Michigan sales tax owed by the enterprise. This bill is one of many authorizing “revenue enhancements” which Gov. Jennifer Granholm has proposed to close a gap between state spending and expected revenue in the Fiscal Year 2003-2004 budget. Only those officers, members, managers, or partners responsible for filing and paying delinquent taxes would be liable; those who did not have “control, supervision or responsibility” over such matters would not be liable. This bill is one of many authorizing “revenue enhancements” which Gov. Jennifer Granholm has proposed to close a gap between state spending and expected revenue in the Fiscal Year 2003-2004 budget.

Signed by Gov. Jennifer Granholm

June 24, 2003