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

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 4290

 

 

 

 

 

 

 

 

 

 

 

 

     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.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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

 

advisable.

 

     (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.