February 14, 2007, Introduced by Rep. Bieda and referred to the Committee on Tax Policy.
A bill to amend 1941 PA 122, entitled
"An act to establish the revenue collection duties of the
department of treasury; to prescribe its powers and duties as the
revenue collection 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 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 provide procedures for the payment, administration,
audit, assessment, 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
remedies; and to declare the effect of this act,"
by amending section 28 (MCL 205.28), as amended by 2003 PA 114, and
by adding section 3b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3b. (1) The department of treasury may disclose a list of
all taxpayers that are delinquent in the payment of tax liabilities
collected by the department. The list may include those taxpayers
with account balances for all taxes collected by the department
including penalties and interest totaling greater than $25,000.00
for a period in excess of 90 days from the date of the final tax
assessment. The list may contain the name, last known address, and
total account balance of each delinquent taxpayer and, in the case
of a business taxpayer, may include the name of any taxpayers or
individuals assessed a liability under section 27a(1) or (5).
(2) Not less than 90 days before the disclosure of the name of
a delinquent taxpayer prescribed in subsection (1), the department
shall mail a written notice to the delinquent taxpayer at his or
her last known address informing the taxpayer of the total account
balance and the intended disclosure of the delinquency. If the
account balance has not been paid within 60 days after the notice
was mailed and the taxpayer has not, since the mailing of the
notice, either entered into in a written agreement with the
department for payment of the delinquency or corrected a default in
an existing agreement to the satisfaction of the department, the
department may disclose the taxpayer in the list of delinquent
taxpayers.
(3) Unpaid taxes may not be disclosed if 1 or more of the
following apply:
(a) A written agreement for payment exists without default
between the taxpayer and the department.
(b) The tax liability is the subject of an informal
conference, administrative review, or judicial review provided for
in this act, or an appeal of any of these proceedings.
(c) The department has received written notice that the
taxpayer has filed for bankruptcy protection.
(4) The list may be available for public inspection at the
department and by other means of publication, including the
internet. In the case of a business taxpayer, the department may
post written notice of the delinquency in a conspicuous location at
the taxpayer's business premises.
(5) The name of a taxpayer shall be removed within 30 days
after the payment of the debt or if the taxpayer otherwise meets 1
of the conditions described in subsection (3).
(6) Any disclosure made by an employee of the department in a
good faith effort to comply with this section shall not be
considered a violation of any statute prohibiting disclosure of
taxpayer information including section 28(1)(f).
Sec. 28. (1) The following conditions apply to all taxes
administered under this act unless otherwise provided for in the
specific tax statute:
(a) Notice, if required, shall be given either by personal
service or by certified mail addressed to the last known address of
the taxpayer. Service upon the department may be made in the same
manner.
(b) An injunction shall not issue to stay proceedings for the
assessment and collection of a tax.
(c) In addition to the mode of collection provided in this
act, the department may institute an action at law in any county in
which the taxpayer resides or transacts business.
(d) The state treasurer may request in writing information or
records in the possession of any other department, institution, or
agency of state government for the performance of duties under this
act. Departments, institutions, or agencies of state government
shall furnish the information and records upon receipt of the state
treasurer's request. Upon request of the state treasurer, any
department, institution, or agency of state government shall hold a
hearing under the administrative procedures act of 1969, 1969 PA
306, MCL 24.201 to 24.328, to consider withholding a license or
permit of a person for nonpayment of taxes or accounts collected
under this act.
(e) Except as otherwise provided in section 30c, the state
treasurer or an employee of the department shall not compromise or
reduce in any manner the taxes due to or claimed by this state or
unpaid accounts or amounts due to any department, institution, or
agency of state government. This subdivision does not prevent a
compromise of interest or penalties, or both.
(f) Except as otherwise provided in this subdivision, an
employee, authorized representative, or former employee or
authorized representative of the department or anyone connected
with the department shall not divulge any facts or information
obtained in connection with the administration of a tax or
information or parameters that would enable a person to ascertain
the audit selection or processing criteria of the department for a
tax administered by the department. An employee or authorized
representative shall not willfully inspect any return or
information contained in a return unless it is appropriate for the
proper administration of a tax law administered under this act. A
person may disclose information described in this subdivision if
the disclosure is permitted under section 3b or is required for the
proper administration of a tax law administered under this act or
the general property tax act, 1893 PA 206, MCL 211.1 to 211.157,
pursuant to a judicial order sought by an agency charged with the
duty of enforcing or investigating support obligations pursuant to
an order of a court in a domestic relations matter as that term is
defined in section 2 of the friend of the court act, 1982 PA 294,
MCL 552.502, or pursuant to a judicial order sought by an agency of
the federal, state, or local government charged with the
responsibility for the administration or enforcement of criminal
law for purposes of investigating or prosecuting criminal matters
or for federal or state grand jury proceedings or a judicial order
if the taxpayer's liability for a tax administered under this act
is to be adjudicated by the court that issued the judicial order. A
person may disclose the adjusted gross receipts and the wagering
tax paid by a casino licensee licensed under the Michigan gaming
control and revenue act, the Initiated Law of 1996, MCL 432.201 to
432.226, pursuant to section 18, sections 341, 342, and 386 of the
management and budget act, 1984 PA 431, MCL 18.1341, 18.1342, and
18.1386, or authorization by the executive director of the gaming
control board. However, the state treasurer or a person designated
by the state treasurer may divulge information set forth or
disclosed in a return or report or by an investigation or audit to
any department, institution, or agency of state government upon
receipt of a written request from a head of the department,
institution, or agency of state government if it is required for
the effective administration or enforcement of the laws of this
state, to a proper officer of the United States department of
treasury, and to a proper officer of another state reciprocating in
this privilege. The state treasurer may enter into reciprocal
agreements with other departments of state government, the United
States department of treasury, local governmental units within this
state, or taxing officials of other states for the enforcement,
collection, and exchange of data after ascertaining that any
information provided will be subject to confidentiality
restrictions substantially the same as the provisions of this act.
(2) A person who violates subsection (1)(e), (1)(f), or (4) is
guilty of a felony, punishable by a fine of not more than
$5,000.00, or imprisonment for not more than 5 years, or both,
together with the costs of prosecution. In addition, if the offense
is committed by an employee of this state, the person shall be
dismissed from office or discharged from employment upon
conviction.
(3) A person liable for any tax administered under this act
shall keep accurate and complete records necessary for the proper
determination of tax liability as required by law or rule of the
department.
(4) A person who receives information under subsection (1)(f)
for the proper administration of the general property tax act, 1893
PA 206, MCL 211.1 to 211.157, shall not willfully disclose that
information for any purpose other than the administration of the
general property tax act, 1893 PA 206, MCL 211.1 to 211.157. A
person who violates this subsection is subject to the penalties
provided in subsection (2).
(5) As used in subsection (1), "adjusted gross receipts" and
"wagering tax" mean those terms as described in the Michigan gaming
control and revenue act, the Initiated Law of 1996, MCL 432.201 to
432.226.