Lansing — Gov. Rick Snyder on Tuesday vetoed legislation that would have limited the personal liability for certain officers of corporations that fail to remit taxes they collect.
In a veto letter to the Legislature, former computer executive Snyder did not detail his specific problems with the legislation, but encouraged lawmakers to send him a different bill that makes similar changes in the state’s corporate officer liability laws.
“I appreciate the hard work and thoughtfulness that went into the consideration of SB 64,” Snyder wrote in a veto letter to lawmakers. “It contains many useful elements, and subsequent to its passage my administration continued to work in close partnership with members of the Legislature on this important issue.”
Late last year, the Treasury Department opposed the legislation, Senate Bill 64, sponsored by state Sen. Jack Brandenburg, R-Harrison Township. The proposal sought to limit the number of corporate officers who could be held personally liable for unpaid taxes to the individual directly responsible for collecting and remitting taxes.
Under the bill, the “responsible person” would have had to “willfully” dodged the tax bill before they could be held personally liable, according to an analysis of the legislation from the nonpartisan House Fiscal Agency.
The legislation would have limited the personal liability of corporate officers whose business failed to pay taxes collected from an individual, such as sales or income taxes. Senate Bill 64 would have prohibited the Treasury Department from assessing a “responsible person” at a company that failed to remit taxes more than four years after an assessment.
Brandenburg also is sponsoring Senate Bill 337, the alternative legislation Snyder said Tuesday he would sign should it arrive on his desk.