LANSING – A tax amnesty program the state is counting on netting $61.8 million to balance the 2010-11 fiscal year budget passed the House on Tuesday after the chamber made a few changes.
The amnesty program would run from May 15 through June 30, 2011, and would allow people with unpaid taxes before December 31, 2009 to pay up without any penalty. When the Senate passed SB 884 , it had included a penalty for taxpayers who failed to file a return during the amnesty period, but the House struck that language.
The House version, which passed 58-49, also allows the Department of Treasury to bid out collection services to a private company after the amnesty period ends. That company would contact taxpayers the state had yet to get in touch with.
Democrats added the amendment after rejecting a Republican amendment that would have had a private company run the entire amnesty program.
The House version allocates $6.8 million to Treasury to administer the amnesty program, while the Senate version had provided $1 million.
The legislation is also no longer tie-barred to bills dealing with phasing out the Michigan Business Tax surcharge (SB 1 ), revising the MBT’s small business and entrepreneurial credits (SB 69 ), reducing the film credits (SB 838 ) and requiring a person live in Michigan for six months before obtaining the Earned Income Tax Credit (HB 4514 ).
There was no debate on the bill as the chamber acted, but seven Democrats joined a solid Republican minority in opposition: Rep. Michael Lahti (D-Hancock), Rep. Jeff Mayes (D-Bay City), Rep. Tim Melton (D-Auburn Hills), Rep. Andy Neumann (D-Alpena), Rep. Gino Polidori (D-Dearborn), Rep. Jim Slezak (D-Davison) and Rep. Dudley Spade (D-Tipton).
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