The Michigan Senate passed a bill to create an amnesty period during which those who owe back taxes to the state can make good without additional fines or any threat of imprisonment. The law applies to those who failed to file a return, those who did not pay taxes that they owed and those who filed a fraudulent claim for a refund that they received.

But this is part of a larger package of bills that includes phasing out the surcharge on the Michigan Business Tax and freezing the Earned Income Tax Credit for low-income Michigan residents, which is very controversial and may not pass the House or get signed by Gov. Granholm. This particular provision is expected to bring in about $35 million in missing tax revenue.