October 25, 2005, Introduced by Reps. Sheen, Wenke, Jones, Huizenga, Pastor, Palmer, Vander Veen, Meyer, Hummel, Amos, Kahn, Baxter and Robertson 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 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
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.
(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.