SB-0070, As Passed Senate, October 15, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE SUBSTITUTE FOR

 

SENATE BILL NO. 70

 

 

 

 

 

 

 

 

 

 

 

 

 

     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 or in

 

subsection (6), 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

 

required to disclose information under section 10(1)(j) of the

 

Michigan economic growth authority act, 1995 PA 24, MCL 207.810,

 

may disclose the information only to the individuals described in

 

that section. 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

 

IL 1, 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 211.157 211.155, 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) A person identified in section 10(1) of the Michigan

 

economic growth authority act, 1995 PA 24, MCL 207.810, who

 

receives information under section 10(1)(j) of the Michigan

 

economic growth authority act, 1995 PA 24, MCL 207.810, as

 

permitted in subsection (1)(f), shall not willfully disclose that

 

information for any purpose other than the proper administration of

 

his or her legislative duties nor disclose that information to

 

anyone other than an employee of the legislature, who is also bound

 

by the same restrictions. A person who violates this subsection is

 

responsible for and subject to a civil fine of not more than


 

$5,000.00 per violation.

 

     (6) The department shall annually prepare a report containing

 

statistics described in this subsection concerning the Michigan

 

business tax act, 2007 PA 36, MCL 208.1101 to 208.1601, for the

 

most recent tax year for which reliable return data have been

 

processed and cleared in the ordinary course of return processing

 

by the department. A copy of the report shall be provided to the

 

chairpersons of the senate and house of representatives standing

 

committees that have jurisdiction over matters relating to taxation

 

and finance, the director of the senate fiscal agency, and the

 

director of the house fiscal agency. The department shall report

 

the following information broken down by business sector and,

 

provided that no grouping consists of fewer than 10 taxpayers, by

 

firm size in compliance with subsection (1)(f) and in a manner that

 

does not result in the disclosure of information regarding any

 

specific taxpayer:

 

     (a) Apportioned business income tax base.

 

     (b) Apportioned modified gross receipts tax base.

 

     (c) Business income tax liability.

 

     (d) Use of credits.

 

     (e) Modified gross receipts tax liability.

 

     (f) Total final liability.

 

     (g) Total liability before credits.

 

     (7) (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 IL 1, MCL

 

432.201 to 432.226.


 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 95th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. 71.

 

     (b) Senate Bill No. 774.

 

     (c) House Bill No. 4922.