February 1, 2018, Introduced by Reps. Victory, Lauwers, Barrett, VerHeulen and Maturen 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 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 2014 PA 565.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. (1) 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,
July 15, 2016, 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.
(2) If the department intends to issue a bulletin, a letter
ruling, or any other document that explains the department's
interpretation of a state tax law, or to issue a bulletin, a letter
ruling, or any other document that modifies or reinterprets an
existing bulletin, letter ruling, or other document that explains
the department's interpretation of a state tax law, the department
shall provide notice to each house of the legislature of that
bulletin, letter ruling, or document 6 months prior to issuing the
bulletin, letter ruling, or document. The department shall not
issue a bulletin, a letter ruling, or a document that explains the
department's interpretation of state tax law that provides a
retroactive effect.