HB-5355, As Passed Senate, January 19, 2006

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5355

     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 2003 PA 92.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 3. (1) 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

amounts 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 

concerning the matter at issue of any person or taxpayer subject to

any tax, unpaid account, or amount 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  concerning 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  production 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

concerning the matter in question if so ordered, and the 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  However, a person shall not

be prosecuted or subjected to any criminal penalty for or on

account of any transaction made or  thing  anything 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

House Bill No. 5355 as amended January 19, 2006

of this state,  as  that 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 90 days after the effective date of the amendatory

act that added this sentence, each  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. 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. <<A

taxpayer shall request a letter ruling on a form and in a manner prescribed by the department.>>

(2) Except as otherwise provided in subsections (3) and (4), a

rule or bulletin issued by the department under this act shall not

apply before the earliest of the following dates:

     (a) The date on which the rule or bulletin is filed with the

office of the great seal.

     (b) The date on which any notice substantially describing the

expected contents of a rule or bulletin is issued to the public.

     (3) Subsection (2)(a) does not apply to any rule issued within

18 months of the date of the enactment of the statutory provision

to which the rule relates or as otherwise provided by law.

     (4) The treasurer may provide that any rule or bulletin may

take effect or apply retroactively to prevent abuse or to correct a

procedural defect in the issuance of any prior rule or bulletin.

     Enacting section 1. This amendatory act takes effect October

1, 2006.