State Sen. Roger Victory has introduced legislation to increase accountability for the Michigan Department of Treasury by outlining a clear structure to pay interest on refunds that are not processed in a timely manner.
Victory’s bill would also require thorough reporting on income tax processing, ensuring transparency as Michiganders work through the process of filing their income tax returns.
“I have heard from countless constituents who have dealt with delays or incorrect returns, and they are demanding accountability,” said Victory, R-Hudsonville. “There are penalties for hardworking Michigan taxpayers if they fail to file their tax returns on time, so it’s about time the Department of Treasury had some accountability as well.”
Senate Bill 1083 would create a clear structure for the Department of Treasury to pay interest on income tax returns that are not processed in a timely manner. Interest would be paid in addition to the income tax refund as follows:
• After 30 days, interest would accrue at the state interest rate (currently 8.48%).
• After 60 days, interest would accrue at the state interest rate plus an additional 3%.
• After 90 days, interest would accrue at the state interest rate plus an additional 3%, and an additional $100 payment would be included in the refund.
SB 1083 would also require the department to provide monthly reports to the Legislature on refund processing times, backlog volumes, and the number of returns that required additional interest and payment due to the department’s failure to process the returns in a timely manner.
Victory’s bill would also require thorough reporting on income tax processing, ensuring transparency as Michiganders work through the process of filing their income tax returns.
“I have heard from countless constituents who have dealt with delays or incorrect returns, and they are demanding accountability,” said Victory, R-Hudsonville. “There are penalties for hardworking Michigan taxpayers if they fail to file their tax returns on time, so it’s about time the Department of Treasury had some accountability as well.”
Senate Bill 1083 would create a clear structure for the Department of Treasury to pay interest on income tax returns that are not processed in a timely manner. Interest would be paid in addition to the income tax refund as follows:
• After 30 days, interest would accrue at the state interest rate (currently 8.48%).
• After 60 days, interest would accrue at the state interest rate plus an additional 3%.
• After 90 days, interest would accrue at the state interest rate plus an additional 3%, and an additional $100 payment would be included in the refund.
SB 1083 would also require the department to provide monthly reports to the Legislature on refund processing times, backlog volumes, and the number of returns that required additional interest and payment due to the department’s failure to process the returns in a timely manner.
