Senate approves Stamas’ income tax flexibility bills

LANSING, Mich. — The Michigan Senate on Tuesday unanimously approved Senate Appropriations Committee Chairman Jim Stamas’ legislation to extend state and local income tax filing and payment deadlines to match the extension provided by the federal government for the 2019 tax year.

“This will ensure Michigan families have needed flexibility on filing and paying their income taxes, especially those who are hurting due to the impact of the coronavirus and the governor’s lockdown orders,” said Stamas, R-Midland. “By putting these extensions into law and mirroring them to the federal deadlines, we can help struggling workers — who will owe taxes instead of getting a refund — continue to support their families during this tough time.”

Senate Bills 887 and 889 would extend the state and local income tax filing and payment deadlines for tax year 2019 from April 15 to July 15 for most individuals and businesses and from April 30 to July 31 for other businesses.

SB 888 would waive all interest and penalties for filing or paying income tax late for tax year 2019 until after the deadlines set in SBs 887 and 889 are reached. Under the bill, penalties and interest would start to accrue beginning July 16 for most individuals and businesses and from Aug. 1 for other businesses.

“In addition to allowing taxpayers to keep their money through this crisis, this would also give more time to people and small businesses whose ability to complete their taxes continue to be impacted by the governor’s executive orders on accounting firms and local government offices,” Stamas said.

SBs 887-889 now head to the House of Representative for consideration.