HOUSE BILL No. 4233

 

February 18, 2003, Introduced by Rep. Steil 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 3 (MCL 205.3), as amended by 2002 PA 657.               

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 3.  The department shall have all the powers and                       

                                                                                

2   perform the duties formerly vested in  any  a department, board,            

                                                                                

3   commission, or other agency, in connection with taxes due to or             

                                                                                


                                                                                

1   claimed by  the  this state and in connection with unpaid                   

                                                                                

2   accounts or amounts due to  the  this state or any of its                   

                                                                                

3   departments, institutions, or agencies  which  that may be made             

                                                                                

4   payable to or collectible by the department created by this act.            

                                                                                

5   , and  The department has the power and authority incidental to            

                                                                                

6   the performance of the following acts, duties, and services:                

                                                                                

7       (a) The state treasurer or  any of the  a duly appointed                    

                                                                                

8   agents  agent of the state treasurer may examine the books,                

                                                                                

9   records, and papers touching the matter at issue of any person or           

                                                                                

10  taxpayer subject to any tax, unpaid account, or amount the                  

                                                                                

11  collection of which is charged to the department.  The state                

                                                                                

12  treasurer or  any of the  a duly appointed  agents  agent of the            

                                                                                

13  state treasurer may issue a subpoena requiring a person to appear           

                                                                                

14  and be examined with reference to a matter within the scope of              

                                                                                

15  the inquiry or investigation being conducted by the department              

                                                                                

16  and to produce any books, records, or papers.  The state                    

                                                                                

17  treasurer or  any of the  a duly appointed  agents, referees, or            

                                                                                

18  examiners  agent, referee, or examiner of the state treasurer may           

                                                                                

19  administer an oath to a witness in any matter before the                    

                                                                                

20  department.  The department may invoke the aid of the circuit               

                                                                                

21  court of this state in requiring the attendance and testimony of            

                                                                                

22  witnesses and the producing of books, papers, and documents.  The           

                                                                                

23  circuit court of  the  this state within the jurisdiction of                

                                                                                

24  which an inquiry is carried on, in case of contumacy or refusal             

                                                                                

25  to obey a subpoena, may issue an order requiring the person to              

                                                                                

26  appear before the department and produce books and papers if so             

                                                                                

27  ordered and any evidence touching the matter in question, and               


                                                                                

1   failure to obey the order of the court may be punished by the               

                                                                                

2   court as a contempt.  A person shall not be excused from                    

                                                                                

3   testifying or from producing any books, papers, records, or                 

                                                                                

4   memoranda in any investigation, or upon any hearing when ordered            

                                                                                

5   to do so by the state treasurer, upon the ground that the                   

                                                                                

6   testimony or evidence, documentary or otherwise, may tend to                

                                                                                

7   incriminate or subject him or her to a criminal penalty, however,           

                                                                                

8   a person shall not be prosecuted or subjected to any criminal               

                                                                                

9   penalty for or on account of any transaction made or thing                  

                                                                                

10  concerning which he or she may testify or produce evidence,                 

                                                                                

11  documentary or otherwise, before the  board  department or its              

                                                                                

12  agent.  A person  so  testifying  shall  is not  be  exempt from            

                                                                                

13  prosecution and punishment for perjury committed while                      

                                                                                

14  testifying.                                                                 

                                                                                

15      (b) After reasonable notice and public hearing,  to  the                    

                                                                                

16  department may promulgate rules consistent with this act in                 

                                                                                

17  accordance with the administrative procedures act of 1969, 1969             

                                                                                

18  PA 306, MCL 24.201 to 24.328,  as may be  necessary to the                  

                                                                                

19  enforcement of the provisions of tax and other revenue measures             

                                                                                

20  which  that are administered by the department.                            

                                                                                

21      (c)  Consult  The department may consult with the governor                  

                                                                                

22  and the legislature  upon  on the subject of taxation, revenue,             

                                                                                

23  and the administration of the laws in relation to taxation and              

                                                                                

24  revenue, and the progress of the work of the department,                    

                                                                                

25  including the furnishing of reports, information, and other                 

                                                                                

26  assistance as the governor may require.                                     

                                                                                

27      (d)  Investigate  The department may investigate and study                  


                                                                                

1   all matters of taxation and revenue as the basis of recommending            

                                                                                

2   to the governor and the legislature those changes and alterations           

                                                                                

3   in the tax laws of  the  this state, as in the state treasurer's            

                                                                                

4   judgment may bring about a more adequate and just system of state           

                                                                                

5   and local taxation.                                                         

                                                                                

6       (e)  Formulate  The department may formulate a standard                     

                                                                                

7   procedure  whereby  that requires the departments, commissions,             

                                                                                

8   boards, institutions, and the agencies of this state  which  that           

                                                                                

9   collect taxes, fees, or accounts for this state  shall  to report           

                                                                                

10  all sums of money due and uncollected and those uncollected items           

                                                                                

11  as  may be  prescribed by law and by the state treasurer.  The              

                                                                                

12  procedure prescribed in this subdivision shall include a standard           

                                                                                

13  practice for receiving, receipting, safeguarding, and                       

                                                                                

14  periodically reporting all state revenue receipts, whether                  

                                                                                

15  current, delinquent, penalty, interest, or otherwise, and the               

                                                                                

16  amounts, kinds, and terms of items either collected, compromised,           

                                                                                

17  or still outstanding, to be summarized, studied, and reported               

                                                                                

18  upon as the state treasurer considers advisable.                            

                                                                                

19      (f) The department may periodically issue bulletins that                    

                                                                                

20  index and explain current department interpretations of current             

                                                                                

21  state tax laws.  A bulletin or letter ruling issued by the                  

                                                                                

22  commissioner shall be published and made available to the public            

                                                                                

23  in printed and electronic formats. The department may charge a              

                                                                                

24  reasonable fee for subscriptions to this service not to exceed              

                                                                                

25  the cost of printing.  The money received from the sale of  such            

                                                                                

26  subscription  subscriptions shall revert to the department and be           

                                                                                

27  placed in the taxation manual revolving fund.