SENATE BILL
No. 892
November 30, 1999, Introduced by Senators STEIL, VAN REGENMORTER, SIKKEMA,
SHUGARS, BENNETT, GOUGEON, JAYE, STILLE, GOSCHKA, V. SMITH and
KOIVISTO and referred to the Committee on Gaming and Casino Oversight.
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; and to declare the effect of this act,"
by amending section 28 (MCL 205.28), as amended by 1998 PA 221.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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:
04879'99 JLB
2
1 (a) Notice, if required, shall be given either by personal
2 service or by certified mail addressed to the last known address
3 of the taxpayer. Service upon the commissioner may be made in
4 the same manner.
5 (b) An injunction shall not issue to stay proceedings for
6 the assessment and collection of a tax.
7 (c) In addition to the mode of collection provided in this
8 act, the department may institute an action at law in any county
9 in which the taxpayer resides or transacts business.
10 (d) The commissioner may request in writing information or
11 records in the possession of any other department, institution,
12 or agency of state government for the performance of duties under
13 this act. Departments, institutions, or agencies of state gov-
14 ernment shall furnish the information and records upon receipt of
15 the commissioner's request. Upon request of the commissioner,
16 any department, institution, or agency of state government shall
17 hold a hearing under the administrative procedures act of 1969,
18 1969 PA 306, MCL 24.201 to 24.328, to consider withholding a
19 license or permit of a person for nonpayment of taxes or accounts
20 collected under this act.
21 (e) Except as otherwise provided in section 30c, the commis-
22 sioner or an employee of the department shall not compromise or
23 reduce in any manner the taxes due to or claimed by the
THIS
24 state or unpaid accounts or amounts due to any department, insti-
25 tution, or agency of state government. This subdivision does not
26 prevent a compromise of interest or penalties, or both.
04879'99 3
1 (f) Except as otherwise provided in this subdivision, an
2 employee, authorized representative, or former employee or
3 authorized representative of the department or anyone connected
4 with the department shall not divulge any facts or information
5 obtained in connection with the administration of a tax or infor-
6 mation or parameters that would enable a person to ascertain the
7 audit selection or processing criteria of the department for a
8 tax administered by the department. A person may disclose infor-
9 mation described in this subdivision if the disclosure is
10 required for the proper administration of a tax law administered
11 under this act, pursuant to a judicial order sought by an agency
12 charged with the duty of enforcing or investigating support obli-
13 gations pursuant to an order of a court in a domestic relations
14 matter as that term is defined in section 31 2 of
the friend of
15 the court act, 1982 PA 294, MCL 552.531 552.502,
or pursuant to
16 a judicial order sought by an agency of the federal, state, or
17 local government charged with the responsibility for the adminis-
18 tration or enforcement of criminal law for purposes of investi-
19 gating or prosecuting criminal matters or for federal or state
20 grand jury proceedings or a judicial order if the taxpayer's
21 liability for a tax administered under this act is to be adjudi-
22 cated by the court that issued the judicial order. However, the
23 commissioner or a person designated by the commissioner may
24 divulge information set forth or disclosed in a return or report
25 or by an investigation or audit to any department, institution,
26 or agency of state government upon receipt of a written request
27 from a head of the department, institution, or agency of state
04879'99 4
1 government if it is required for the effective administration or
2 enforcement of the laws of this state, to a proper officer of the
3 United States department of treasury, and to a proper officer of
4 another state reciprocating in this privilege. The commissioner
5 may enter into reciprocal agreements with other departments of
6 state government, the United States department of treasury, local
7 governmental units within this state, or taxing officials of
8 other states for the enforcement, collection, and exchange of
9 data after ascertaining that any information provided will be
10 subject to confidentiality restrictions substantially the same as
11 the provisions of this act. THIS SUBDIVISION DOES NOT APPLY TO A
12 MEMBER OF THE GAMING CONTROL BOARD OR AN EMPLOYEE OF THE GAMING
13 CONTROL BOARD AUTHORIZED BY THE GAMING CONTROL BOARD WHO RELEASES
14 FINANCIAL INFORMATION CONCERNING THE OPERATION OF A CASINO BY A
15 CASINO LICENSEE LICENSED UNDER THE MICHIGAN GAMING CONTROL AND
16 REVENUE ACT, THE INITIATED LAW OF 1996, MCL 432.201 TO 432.226.
17 (2) A person who violates subsection (1)(e) or (1)(f) is
18 guilty of a felony, punishable by a fine of not more than
19 $5,000.00, or imprisonment for not more than 5 years, or both,
20 together with the costs of prosecution. In addition, if the
21 offense is committed by an employee of this state, the person
22 shall be dismissed from office or discharged from employment upon
23 conviction.
24 (3) A person liable for any tax administered under this act
25 shall keep accurate and complete records necessary for the proper
26 determination of tax liability as required by law or rule of the
27 department.
04879'99Final page.