HOUSE BILL No. 6296 September 17, 2002, Introduced by Rep. Wojno and referred to the Committee on Family and Children Services. A bill to amend 1941 PA 122, entitled "An act to establish a revenue division of the department of treasury; to prescribe its powers and duties as the revenue col- lection agency of the state; to prescribe certain powers and duties of the state treasurer; to regulate the importation, stamping, and disposition of certain tobacco products; to create the position and to define the powers and duties of the state commissioner of revenue; to provide for the transfer of powers and duties now vested in certain other state boards, commissions, departments and offices; to prescribe certain duties of and require certain reports from the department of treasury; to pro- vide procedures for the payment, administration, audit, assess- ment, levy of interests or penalties on, and appeals of taxes and tax liability; to prescribe its powers and duties if an agreement to act as agent for a city to administer, collect, and enforce the city income tax act on behalf of a city is entered into with any city; to provide an appropriation; to abolish the state board of tax administration; to prescribe penalties and provide reme- dies; and to declare the effect of this act," by amending section 28 (MCL 205.28), as amended by 2000 PA 308. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 07684'02 c GWH 2 1 Sec. 28. (1) The following conditions apply to all taxes 2 administered under this act unless otherwise provided for in the 3 specific tax statute: 4 (a) Notice, if required, shall be given either by personal 5 service or by certified mail addressed to the last known address 6 of the taxpayer. Service upon the commissioner may be made in 7 the same manner. 8 (b) An injunction shall not issue to stay proceedings for 9 the assessment and collection of a tax. 10 (c) In addition to the mode of collection provided in this 11 act, the department may institute an action at law inanyA 12 county in which the taxpayer resides or transacts business. 13 (d) The commissioner may request in writing information or 14 records in the possession ofany otherANOTHER department, 15 institution, or agency of state government for the performance of 16 duties under this act. Departments, institutions, or agencies of 17 state government shall furnish the information and records upon 18 receipt of the commissioner's request. Upon request of the com- 19 missioner,anyA department, institution, or agency of state 20 government shall hold a hearing under the administrative proce- 21 dures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to consider 22 withholding a license or permit of a person for nonpayment of 23 taxes or accounts collected under this act. 24 (e) Except as otherwise provided in section 30c, the commis- 25 sioner or an employee of the department shall not compromise or 26 reduce in any manner the taxes due to or claimed by this state or 27 unpaid accounts or amounts due toanyA department, 07684'02 c 3 1 institution, or agency of state government. This subdivision 2 does not prevent a compromise of interest or penalties, or both. 3 (f) Except as otherwise provided in this subdivision, an 4 employee, authorized representative, or former employee or autho- 5 rized representative of the department or anyone connected with 6 the department shall not divulge any facts or information 7 obtained in connection with the administration of a tax or infor- 8 mation or parameters that would enable a person to ascertain the 9 audit selection or processing criteria of the department for a 10 tax administered by the department. An employee or authorized 11 representative shall not willfully inspectanyA return or 12 information contained in a return unless it is appropriate for 13 the proper administration of a tax law administered under this 14 act. A person may disclose information described in this subdi- 15 vision if the disclosure is required for the proper administra- 16 tion of a tax law administered under this act,pursuant to17 UNDER a judicial order sought by an agency charged with the duty 18 of enforcing or investigating support obligationspursuant to19 UNDER an order of a court in a domestic relations matter as that 20 term is defined in section 2 of the friend of thecourtCHILD 21 act, 1982 PA 294, 552.502, orpursuant toUNDER a judicial 22 order sought by an agency of the federal, state, or local govern- 23 ment charged with the responsibility for the administration or 24 enforcement of criminal law for purposes of investigating or 25 prosecuting criminal matters or for federal or state grand jury 26 proceedings or a judicial order if the taxpayer's liability for a 27 tax administered under this act is to be adjudicated by the court 07684'02 c 4 1 that issued the judicial order. A person may disclose the 2 adjusted gross receipts and the wagering tax paid by a casino 3 licensee licensed under the Michigan gaming control and revenue 4 act, the Initiated Law of 1996, MCL 432.201 to 432.226,pursuant5toUNDER section 18, sections 341, 342, and 386 of the manage- 6 ment and budget act, 1984 PA 431, MCL 18.1341, 18.1342, and 7 18.1386, or authorization by the executive director of the gaming 8 control board. However, the commissioner or a person designated 9 by the commissioner may divulge information set forth or dis- 10 closed in a return or report or by an investigation or audit to 11anyA department, institution, or agency of state government 12 upon receipt of a written request from a head of the department, 13 institution, or agency of state government if it is required for 14 the effective administration or enforcement of the laws of this 15 state, to a proper officer of the United States department of 16 treasury, and to a proper officer of another state reciprocating 17 in this privilege. The commissioner may enter into reciprocal 18 agreements with other departments of state government, the United 19 States department of treasury, local governmental units within 20 this state, or taxing officials of other states for the enforce- 21 ment, collection, and exchange of data after ascertaining that 22 any information provided will be subject to confidentiality 23 restrictions substantially the same as the provisions of this 24 act. 25 (2) A person who violates subsection (1)(e) or (1)(f) is 26 guilty of a felony, punishable by a fine of not more than 27 $5,000.00, or imprisonment for not more than 5 years, or both, 07684'02 c 5 1 together with the costs of prosecution. In addition, if the 2 offense is committed by an employee of this state, the person 3 shall be dismissed from office or discharged from employment upon 4 conviction. 5 (3) A person liable for any tax administered under this act 6 shall keep accurate and complete records necessary for the proper 7 determination of tax liability as required by law or rule of the 8 department. 9 (4) As used in subsection (1), "adjusted gross receipts" and 10 "wagering tax" mean those terms as described in the Michigan 11 gaming control and revenue act, the Initiated Law of 1996, 12 MCL 432.201 to 432.226. 13 Enacting section 1. This amendatory act does not take 14 effect unless Senate Bill No. ____ or House Bill No. 6317 15 (request no. 07684'02) of the 91st Legislature is enacted into 16 law. 07684'02 c Final page. GWH