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MI HB5131
Bill
Status
6/9/2016
Primary Sponsor
Jeffry Farrington
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AI Summary
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Eliminates withholding requirements for flow-through entities on distributive business income for tax years beginning on or after July 1, 2016, removing prior requirements under subsections (4) and (5) of section 703.
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Allows flow-through entity members to claim exemptions from withholding by submitting exemption certificates to the entity, provided they file required returns and pay taxes directly.
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Permits the department to revoke exemption certificates if members or entities fail to comply with tax filing and payment obligations, with withholding resuming 60 days after notice.
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Updates withholding requirements for pension and annuity payments, wage compensation, casino and racing winnings, and production company payments to apply personal and dependency exemptions proportionately.
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Takes effect July 1, 2016, with updates to annual reconciliation return filing requirements and reporting obligations for withholding agents.
Legislative Description
Individual income tax; withholding requirements; flow-through entity withholdings; eliminate. Amends secs. 22, 26, 703 & 711 of 1967 PA 281 (MCL 206.22 et seq.).
Individual income tax: income
Last Action
Assigned Pa 158'16 With Immediate Effect
6/9/2016