Summary — HB 5138 (1941 PA 122 amendments)
Status and basic info
- Bill number: HB 5138 (introduced March 13, 2025; bill electronically reproduced 10/28/2025)
- Title (summary): Amend Department of Treasury administration statute (1941 PA 122) to provide for administration of certain accommodation taxes; amend MCL 205.13, 205.19, and 205.30a. Tie-bar: HB 5139'25, HB 5140'25. Related: SB 1026, HB 4957.
- Referred: Committee on Economic Competitiveness (House). Multiple legislative actions recorded in May 2025 (passage, Senate amendments, House refusal to concur, conference committee requested and conferees appointed).
Purpose and intent
- Clarify and expand the statutory duties and authority of the Michigan Department of Treasury as the state’s revenue collection agency.
- Specifically vest Treasury with authority to act as agent to administer, collect, and enforce (a) city income taxes under agreements with cities and (b) accommodations/essential services taxes under agreements with counties or other local units of government.
Key provisions and substantive changes
- Title amended to explicitly include Treasury’s authority where it enters agreements to act as an agent for counties/local units to administer accommodations taxes.
- Amends MCL 205.13 (section 13):
- Confirms Treasury succeeds to powers/duties of several bodies (e.g., State Board of Tax Administration, Auditor General, State Tax Commission) and to attorney-general collection authority for past-due state accounts.
- Adds/clarifies authority for Treasury to administer and enforce city income tax (under city agreements pursuant to the City Income Tax Act, 1964 PA 284) and to administer essential services/accommodations taxes when an agreement exists with a county or local unit (per the Essential Services Tax Enabling Act, 1974 PA 263).
- Requires Treasury not to charge taxpayers any amounts not authorized by law when collecting under such agent agreements.
- Reaffirms the Department of Health and Human Services (DHHS) retains authority for enforcement/collection of support owed to the state and may settle/compromise claims as authorized by federal law and state statutes.
- Restates duties on other state entities to forward delinquent/past-due accounts to Treasury and outlines Treasury’s recordkeeping, collection, reporting, and remittance responsibilities (monthly reporting and payment to the State Treasurer).
- Amends MCL 205.19 (section 19): reiterates forms of acceptable remittances to the Department (bank draft, check, cashier’s/ certified check, money order, cash, electronic funds transfer) and that funds must be credited as provided by law. (Full text for section 19 truncated in provided document.)
- Amends MCL 205.30a (section 30a): specific changes not fully shown in summary materials; included in list of amended sections.
Who is affected
- Department of Treasury: expanded/clarified authority and explicit admin responsibilities for city income taxes and accommodations/essential services taxes when acting as agent.
- Counties and local units of government that may enter agreements with Treasury to have state handle local accommodations/essential services tax administration and enforcement.
- Cities that enter agreements for Treasury to administer city income taxes.
- Taxpayers subject to city income, essential services, or accommodations taxes (procedures for remittance, collection, and protections against unauthorized charges).
- Department of Health and Human Services: retains support-collection authority; affected by clarifying language on settlement/compromise authority.
- Other state agencies required to forward delinquent accounts to Treasury.
Procedural and timeline notes
- The bill amends long-standing revenue administration statute (1941 PA 122) and three statutory sections (MCL 205.13, 205.19, 205.30a).
- Legislative history includes passage steps and a conference committee process in May 2025 (House refused to concur in Senate amendments; conference requested and conferees appointed). As of October 28, 2025 the bill text was electronically reproduced and re-introduced to committee.
- No effective date is provided in the excerpt; final effective date would be set in enrolled/ enacted bill text.
Practical impact
- Provides statutory clarity and an explicit legal basis for the Department of Treasury to act as agent for local governments to administer and collect accommodations/essential services taxes, aligning those functions with existing agent relationships for city income taxes.
- Imposes procedural duties (recordkeeping, monthly reporting/remittance) and limits on charging taxpayers amounts not authorized by law when Treasury acts under local agreements.
