House panel approves bills for timely payment of Ag tax refunds

(AREA) — The House Committee on Agriculture has voted in favor of three bills to provide more timely tax refund payments to Michigan farmers who voluntarily agree to keep their land open for farming. The bills ensure prompt payment for farmers who participate in the state’s Farmland and Open Space Preservation Program, commonly referred to as Public Act 116. The legislation holds the Department of Treasury accountable for timely payment of PA 116 tax refunds and tacks on a 3 percent annual interest rate for delays over 45 days. Delayed tax refunds can make filing accurate income tax forms impossible. Representative Dan Lauwers of Brockway Township is Chairman of the Committee and says by not providing timely payment, farmers could be discouraged from keeping their land in production and allow it to be used for purposes other than farming. Michigan became one of the first states to address farmland preservation with the passage of PA 116 in 1974. At the time, farmland was being taken out of production at an average rate of 117,000 acres annually. The bills now go to the full House for consideration.