HB-4290, As Passed House, May 2, 2013




























     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 3 (MCL 205.3), as amended by 2006 PA 615.




     Sec. 3. Except as otherwise provided in this act, the


department shall have all the powers and perform the duties


formerly vested in a department, board, commission, or other


agency, in connection with taxes due to or claimed by this state


and in connection with unpaid accounts or money due to this state


or any of its departments, institutions, or agencies that may be


made payable to or collectible by the department created by this


act. The department has the power and authority incidental to the


performance of the following acts, duties, and services:


     (a) The state treasurer or a duly appointed agent of the state


treasurer may examine the books, records, and papers touching the


matter at issue of any person or taxpayer subject to any tax,


unpaid account, or money the collection of which is charged to the


department. The state treasurer or a duly appointed agent of the


state treasurer may issue a subpoena requiring a person to appear


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


inquiry or investigation being conducted by the department and to


produce any books, records, or papers. The state treasurer or a


duly appointed agent, referee, or examiner of the state treasurer


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


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


of this state in requiring the attendance and testimony of


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


circuit court of this state within the jurisdiction of which an


inquiry is carried on, in case of contumacy or refusal to obey a


subpoena, may issue an order requiring the person to appear before


the department and produce books and papers if so ordered and any


evidence touching the matter in question, and failure to obey the


order of the court may be punished by the court as a contempt. A


person shall not be excused from testifying or from producing any


books, papers, records, or memoranda in any investigation, or upon


any hearing when ordered to do so by the state treasurer, upon the


ground that the testimony or evidence, documentary or otherwise,


may tend to incriminate or subject him or her to a criminal


penalty, however, a person shall not be prosecuted or subjected to


any criminal penalty for or on account of any transaction made or


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


documentary or otherwise, before the department or its agent. A


person testifying is not exempt from prosecution and punishment for


perjury committed while testifying.


     (b) After reasonable notice and public hearing, the department


may promulgate rules consistent with this act in accordance with


the administrative procedures act of 1969, 1969 PA 306, MCL 24.201


to 24.328, necessary to the enforcement of the provisions of tax


and other revenue measures that are administered by the department.


     (c) The department may consult with the governor and the


legislature on the subject of taxation, revenue, and the


administration of the laws in relation to taxation and revenue, and


the progress of the work of the department, including the


furnishing of reports, information, and other assistance as the


governor may require.


     (d) The department may investigate and study all matters of


taxation and revenue as the basis of recommending to the governor


and the legislature those changes and alterations in the tax laws


of this state, as in the state treasurer's judgment may bring about


a more adequate and just system of state and local taxation.


     (e) The department may formulate a standard procedure that


requires the departments, commissions, boards, institutions, and


the agencies of this state that collect taxes, fees, or accounts


for this state to report all sums of money due and uncollected and


those uncollected items as prescribed by law and by the state


treasurer. The procedure prescribed in this subdivision shall


include a standard practice for receiving, receipting,


safeguarding, and periodically reporting all state revenue


receipts, whether current, delinquent, penalty, interest, or


otherwise, and the amounts, kinds, and terms of items either


collected, compromised, or still outstanding, to be summarized,


studied, and reported upon as the state treasurer considers




     (f) The department may periodically issue bulletins that index


and explain current department interpretations of current state tax


laws. Beginning October 22, 2003, each bulletin or letter ruling


issued by the department on or after August 18, 2000 shall be


published and made available to the public in printed and


electronic formats. Beginning not later than 6 months after the


date of enactment of the amendatory act that added this sentence,


and not subject to section 6a, the department shall publish and


make available to the public in printed and electronic formats the


department's internal policy directives, audit standards, sampling


manual, cash basis sales tax audit overview, industrial processing


sales and use tax manual, contractors sales and use tax manual, and


other deductions sales and use tax manual. The department may


charge a reasonable fee for subscriptions to this service not to


exceed the cost of printing. The money received from the sale of


subscriptions shall revert to the department and be placed in the


taxation manual revolving fund.