The bill amends the 1941 PA 122, which outlines the revenue collection duties of the Department of Treasury in Michigan. Key changes include the introduction of new provisions regarding the calculation and payment of interest on tax refunds. Specifically, the bill stipulates that interest on refunds will be calculated at a rate of 3% per annum for certain conditions and introduces a tiered interest rate structure for refunds not paid within specified timeframes. Additionally, it establishes a new reporting requirement for the Department of Treasury to submit monthly reports to the legislature detailing refund processing times and backlogs.

The bill also modifies existing provisions related to the handling of tax overpayments and claims for refunds. It reduces the timeframe for interest accrual on refunds from 45 days to 30 days after a claim is filed or after the return filing date, whichever is later. Furthermore, it clarifies the conditions under which interest will be paid and introduces new definitions, such as "adjusted prime rate." Overall, these amendments aim to enhance the efficiency and transparency of the tax refund process in Michigan.

Statutes affected:
Senate Introduced Bill: 205.30