The bill amends the 1941 PA 122, enhancing the revenue collection duties of the Michigan Department of Treasury. It introduces provisions that empower the Department to act as an agent for counties or local governments in administering, collecting, and enforcing accommodations taxes. Additionally, the bill clarifies the Department's authority regarding the collection of past due accounts owed to the state and the enforcement of various tax laws, including the city income tax and essential services tax enabling act. Modifications to existing language improve clarity in tax collection processes, specifying how remittances should be credited and establishing the order of priority for applying tax refunds to known liabilities.

Moreover, the bill addresses the allocation of income and exemptions for spouses filing joint tax returns. It stipulates that individual income is allocated to the earning spouse, while joint income is shared equally. Personal exemptions are allocated based on what each spouse would claim if filing separately, with dependency exemptions prorated according to income. The introduction of a nonobligated spouse allocation form, which can be submitted without the obligated spouse's signature if necessary, is also included, along with penalties for false statements and consequences for non-filing. The bill aims to streamline the tax allocation process and clarify the responsibilities of each spouse in joint filings, ensuring consistent and precise definitions for "nonobligated spouse" and "obligated spouse."

Statutes affected:
House Introduced Bill: 205.13