HOUSE BILL No. 5477

 

September 25, 2009, Introduced by Reps. Cushingberry, Johnson and Nathan and referred to the Committee on Judiciary.

 

     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 this state; to prescribe certain

powers and duties of the state treasurer; to establish the

collection duties of certain other state departments for money or

accounts owed to this state; 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.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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 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 211.157 211.155, 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 of this act, 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.

 

The state treasurer may disclose the names and addresses of

 

taxpayers to the extent required under section 1310b of the revised

 

judicature act of 1961, 1961 PA 236, MCL 600.1310b.

 

     (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 211.157 211.155, 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

 

211.155. 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.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 5478(request no.

 

01447'09) of the 95th Legislature is enacted into law.