SB-0244, As Passed House, July 12, 2017

SB-0244, As Passed Senate, March 29, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 244

 

 

March 15, 2017, Introduced by Senators BIEDA, STAMAS, SCHMIDT, HORN, HANSEN, KOWALL, KNEZEK, HILDENBRAND, MEEKHOF and HERTEL and referred to the Committee on Economic Development and International Investment.

 

 

     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 2015 PA 10.

 

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 must 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 sections 23a and 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, in

 

subsection (6) or (7), or in section 23a, 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 211.155,

 

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 pursuant to 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

 

information required for the report described in section 9 of the

 

Michigan strategic fund act, 1984 PA 270, MCL 125.2009, for

 

programs with new written agreements entered into after the

 

effective date of the amendatory act that added this sentence for

 

programs operated under the Michigan strategic fund act, 1984 PA

 

270, MCL 125.2001 to 125.2094. 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, 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 as authorized 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 or a person designated by the state treasurer

 

may disclose the address of each housing unit that is part of a

 

housing project exempt from ad valorem taxes under section 15a of

 

the state housing development authority act of 1966, 1966 PA 346,

 

MCL 125.1415a, or under section 11a of 1933 (Ex Sess) PA 18, MCL

 

125.661a, and whether the unit is subject to a service charge in

 

lieu of ad valorem taxes. The state treasurer or a person

 

designated by the state treasurer may also disclose the millage

 

rates of property taxes as defined in section 512a of the income

 

tax act of 1967, 1967 PA 281, MCL 206.512a.

 

     (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 211.155, 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 211.155. 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 must 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) A person may disclose the following information described

 

in this subsection:

 

     (a) Information required to be reported under section 455 of

 

the Michigan business tax act, 2007 PA 36, MCL 208.1455.

 

     (b) An application to enter into an agreement, a communication

 

denying an application to enter into an agreement, an agreement, a

 

postproduction certificate, a communication denying a

 

postproduction certificate, or the total amount of credits claimed

 

in a tax year under section 455 of the Michigan business tax act,

 

2007 PA 36, MCL 208.1455, notwithstanding section 455(6) of the

 

Michigan business tax act, 2007 PA 36, MCL 408.1455.208.1455.

 

     (c) An application to enter into an agreement, a communication

 

denying an application to enter into an agreement, an agreement, an

 

investment expenditure certificate, a communication denying an

 

investment expenditure certificate, or the total amount of credits

 

claimed in a tax year under section 457 of the Michigan business

 

tax act, 2007 PA 36, MCL 208.1457, notwithstanding section 457(6)


Senate Bill No. 244 as amended July 12, 2017

of the Michigan business tax act, 2007 PA 36, MCL

 

408.1457.208.1457.

 

     (d) An application to enter into an agreement, a communication

 

denying an application to enter into an agreement, an agreement, a

 

qualified job training expenditures certificate, a communication

 

denying a qualified job training expenditures certificate, or the

 

total amount of credits claimed in a tax year under section 459 of

 

the Michigan business tax act, 2007 PA 36, MCL 208.1459,

 

notwithstanding section 459(6) of the Michigan business tax act,

 

2007 PA 36, MCL 408.1459.208.1459.

 

     (8) As used in subsection (1), "adjusted gross receipts" and

 

"wagering tax" mean those terms as described in the Michigan gaming

 

control and revenue act, 1996 IL 1, MCL 432.201 to 432.226.

 

     Enacting section 1. This amendatory act takes effect [30] days

 

after the date it is enacted into law.