This bill amends the Income Tax Act of 1967 by updating sections 51f and 711 to enhance the distribution of withholding tax capture revenues. Specifically, it mandates that a portion of these revenues, attributable to certified new jobs, must be deposited into the "Good Jobs for Michigan Fund" and the "More Jobs for Michigan Fund," as established under the Michigan Strategic Fund Act. The bill clarifies the definitions of terms such as "authorized business," "certified new jobs," and "withholding tax capture revenues" in relation to these funds. Additionally, it introduces a requirement for employers to delineate the taxes withheld and paid to the state versus those paid to community colleges when they have entered into agreements under the Community College Act.

Furthermore, the bill modifies the requirements for individuals and employers regarding the filing of tax statements and returns. It specifies that statements must be issued within 30 days if employment is terminated before the end of the calendar year, and it updates the deadlines for filing annual reconciliation returns. The bill also emphasizes that individuals receiving income subject to withholding must provide accurate information for tax purposes, and it clarifies that any changes in exemptions or residency status must be reported promptly. Overall, these amendments aim to streamline tax processes and ensure proper allocation of funds to support job creation in Michigan.

Statutes affected:
Senate Introduced Bill: 206.51, 206.711