Bill Text: MI SB0070 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Taxation; other; administration; require of the department of treasury to release certain tax information with certain house and senate committee chairs. Amends sec. 28 of 1941 PA 122 (MCL 205.28). TIE BAR WITH: HB 4922'09, SB 0071'09, SB 0774'09
Spectrum: Partisan Bill (Republican 5-0)
Status: (Passed) 2009-10-29 - Assigned Pa 0124'09 With Immediate Effect [SB0070 Detail]
Download: Michigan-2009-SB0070-Engrossed.html
SB-0070, As Passed House, October 14, 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.
