Bills providing farmers timely tax refund earns House approval

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(AREA) — The Michigan House this week approved legislation to provide timely income tax refunds to farmers who keep their land open for food production. House Bills 5189 and 5191, introduced by 81st District State Representative Dan Lauwers, guarantee prompt payment of tax refunds for farmers who take part in the Michigan’s Farmland and Open Space Preservation Program, more commonly known as Public Act 116. According to Lauwers, the farmers are honoring their end of the agreement and the state needs to honor its agreement, too. PA 116 is a voluntary program designed to encourage farmers to retain farmland in production instead of developing the land for other use. Lauwers’ bills require the Department of Treasury to make timely payments of PA 116 tax refunds. Beginning January 1, 2017, the legislation also requires Treasury to pay an annual 3 percent interest rate for refunds delayed longer than 45 days. The legislation now heads to the Senate for consideration.