HOUSE BILL NO. 6232
December 04, 2024, Introduced by Reps. Young, Brenda Carter, Scott, Neeley, Paiz, Farhat and
MacDonell 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
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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 28 (MCL 205.28), as amended by 2023 PA 102.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 28. (1) The following conditions apply to all taxes
2 administered under this act unless otherwise provided for in the
3 specific tax statute:
4 (a) Notice, if required, must be given either by personal
5 service or by certified mail addressed to the last known address of
6 the taxpayer. Service upon the department may be made in the same
7 manner.
8 (b) An injunction must not issue to stay proceedings for the
9 assessment and collection of a tax.
10 (c) In addition to the mode of collection provided in this
11 act, the department may institute an action at law in any county in
12 which the taxpayer resides or transacts business.
13 (d) The state treasurer may request in writing information or
14 records in the possession of any other department, institution, or
15 agency of state government for the performance of duties under this
16 act. Departments, institutions, or agencies of state government
17 shall furnish the information and records upon on receipt of the
18 state treasurer's request. Upon On request of the state treasurer,
19 any department, institution, or agency of state government shall
20 hold a hearing under the administrative procedures act of 1969,
21 1969 PA 306, MCL 24.201 to 24.328, to consider withholding a
22 license or permit of a person for nonpayment of taxes or accounts
23 collected under this act.
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1 (e) Except as otherwise provided in sections 21(2)(e), 23a,
2 and 30c, the state treasurer or an employee of the department shall
3 not compromise or reduce in any manner the taxes due to or claimed
4 by this state or unpaid accounts or amounts due to any department,
5 institution, or agency of state government. This subdivision does
6 not prevent a compromise of interest or penalties, or both.
7 (f) Except as otherwise provided in this subdivision, in
8 subsection (6) or (7), or in section 23a, an employee, authorized
9 representative, former employee or authorized representative of the
10 department, or anyone connected with the department shall not
11 divulge any facts or information obtained in connection with the
12 administration of a tax or information or parameters that would
13 enable a person to ascertain the audit selection or processing
14 criteria of the department for a tax administered by the
15 department. An employee or authorized representative shall not
16 willfully inspect any return or information contained in a return
17 unless it is appropriate for the proper administration of a tax law
18 administered under this act. A person may disclose information
19 described in this subdivision if the disclosure is required for the
20 proper administration of a tax law administered under this act or
21 the general property tax act, 1893 PA 206, MCL 211.1 to 211.155,
22 pursuant to a judicial order sought by an agency charged with the
23 duty of enforcing or investigating support obligations pursuant to
24 an order of a court in a domestic relations matter as that term is
25 defined in section 2 of the friend of the court act, 1982 PA 294,
26 MCL 552.502, pursuant to a judicial order sought by an agency of
27 the federal, state, or local government charged with the
28 responsibility for the administration or enforcement of criminal
29 law for purposes of investigating or prosecuting criminal matters
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1 or for federal or state grand jury proceedings, or pursuant to a
2 judicial order if the taxpayer's liability for a tax administered
3 under this act is to be adjudicated by the court that issued the
4 judicial order. A person required to disclose information under
5 section 10(1)(j) of the Michigan economic growth authority act,
6 1995 PA 24, MCL 207.810, may disclose the information only to the
7 individuals described in that section. A person may disclose the
8 information required for the report described in section 9 of the
9 Michigan strategic fund act, 1984 PA 270, MCL 125.2009, for
10 programs with new written agreements entered into after August 25,
11 2017 for programs operated under the Michigan strategic fund act,
12 1984 PA 270, MCL 125.2001 to 125.2094. A person may disclose the
13 adjusted gross receipts and the wagering tax paid by a casino
14 licensee licensed under the Michigan Gaming Control and Revenue
15 Act, 1996 IL 1, MCL 432.201 to 432.226, pursuant to section 18,
16 sections 341, 342, and 386 of the management and budget act, 1984
17 PA 431, MCL 18.1341, 18.1342, and 18.1386, or as authorized by the
18 executive director of the gaming control board. However, the state
19 treasurer or a person designated by the state treasurer may divulge
20 information set forth or disclosed in a return or report or by an
21 investigation or audit to any department, institution, or agency of
22 state government upon on receipt of a written request from a head
23 of the department, institution, or agency of state government if it
24 is required for the effective administration or enforcement of the
25 laws of this state, to a proper officer of the United States
26 Department of Treasury, and to a proper officer of another state
27 reciprocating in this privilege. The state treasurer may enter into
28 reciprocal agreements with other departments of state government,
29 the United States Department of Treasury, local governmental units
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1 within this state, or taxing officials of other states for the
2 enforcement, collection, and exchange of data after ascertaining
3 that any information provided will be subject to confidentiality
4 restrictions substantially the same as the provisions of this act.
5 The state treasurer or a person designated by the state treasurer
6 may disclose the address of each housing unit that is part of a
7 housing project exempt from ad valorem taxes under section 15a of
8 the state housing development authority act of 1966, 1966 PA 346,
9 MCL 125.1415a, or under section 11a of 1933 (Ex Sess) PA 18, MCL
10 125.661a, and whether the unit is subject to a service charge in
11 lieu of ad valorem taxes. The state treasurer or a person
12 designated by the state treasurer may also disclose the millage
13 rates of property taxes as defined in section 512a of the income
14 tax act of 1967, 1967 PA 281, MCL 206.512a. A person required to
15 disclose information under section 10120 of the public health code,
16 1978 PA 368, MCL 333.10120, from a donor registry schedule received
17 under section 474 of the income tax act of 1967, 1967 PA 281, MCL
18 206.474, may disclose the information only to those organizations
19 described in that section for the administration of the donor
20 registry program. A person authorized to disclose insurance-
21 relevant information on a state income tax return may disclose that
22 information only to the department of health and human services,
23 the department of insurance and financial services, and the
24 exchange organized under section 203 of the Michigan health
25 insurance exchange act for the purposes described in section 471a
26 of the income tax act of 1967, 1967 PA 281, MCL 206.471a.
27 (2) A person who violates subsection (1)(e), (1)(f), or (4) is
28 guilty of a felony punishable by a fine of not more than $5,000.00
29 or imprisonment for not more than 5 years, or both, together with
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1 the costs of prosecution. In addition, if the offense is committed
2 by an employee of this state, the person shall be dismissed from
3 office or discharged from employment upon on conviction.
4 (3) A person liable for any tax administered under this act
5 shall keep accurate and complete records necessary for the proper
6 determination of tax liability as required by law or rule of the
7 department.
8 (4) A person who receives information under subsection (1)(f)
9 for the proper administration of the general property tax act, 1893
10 PA 206, MCL 211.1 to 211.155, shall not willfully disclose that
11 information for any purpose other than the administration of the
12 general property tax act, 1893 PA 206, MCL 211.1 to 211.155. A
13 person who violates this subsection is subject to the penalties
14 provided in subsection (2).
15 (5) A person identified in section 10(1) of the Michigan
16 economic growth authority act, 1995 PA 24, MCL 207.810, who
17 receives information under section 10(1)(j) of the Michigan
18 economic growth authority act, 1995 PA 24, MCL 207.810, as
19 permitted in subsection (1)(f), shall not willfully disclose that
20 information for any purpose other than the proper administration of
21 his or her that person's legislative duties nor and shall not
22 disclose that information to anyone other than an employee of the
23 legislature, who is also bound by the same restrictions. A person
24 who violates this subsection is responsible for and subject to a
25 civil fine of not more than $5,000.00 per violation.
26 (6) The department shall annually prepare a report containing
27 statistics described in this subsection concerning the Michigan
28 business tax act, 2007 PA 36, MCL 208.1101 to 208.1601, 208.1519,
29 for the most recent tax year for which reliable return data have
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1 been processed and cleared in the ordinary course of return
2 processing by the department. A copy of the report must be provided
3 to the chairpersons of the senate and house of representatives
4 standing committees that have jurisdiction over matters relating to
5 taxation and finance, the director of the senate fiscal agency, and
6 the director of the house fiscal agency. The department shall
7 report the following information broken down by business sector
8 and, provided that if no grouping consists of fewer than 10
9 taxpayers, by firm size in compliance with subsection (1)(f) and in
10 a manner that does not result in the disclosure of information
11 regarding any specific taxpayer:
12 (a) Apportioned business income tax base.
13 (b) Apportioned modified gross receipts tax base.
14 (c) Business income tax liability.
15 (d) Use of credits.
16 (e) Modified gross receipts tax liability.
17 (f) Total final liability.
18 (g) Total liability before credits.
19 (7) A person may disclose the following information described
20 in this subsection:
21 (a) Information required to be reported under section 455 of
22 the Michigan business tax act, 2007 PA 36, MCL 208.1455.
23 (b) An application to enter into an agreement, a communication
24 denying an application to enter into an agreement, an agreement, a
25 postproduction certificate, a communication denying a
26 postproduction certificate, or the total amount of credits claimed
27 in a tax year under section 455 of the Michigan business tax act,
28 2007 PA 36, MCL 208.1455, notwithstanding section 455(6) of the
29 Michigan business tax act, 2007 PA 36, MCL 208.1455.
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1 (c) An application to enter into an agreement, a communication
2 denying an application to enter into an agreement, an agreement, an
3 investment expenditure certificate, a communication denying an
4 investment expenditure certificate, or the total amount of credits
5 claimed in a tax year under section 457 of the Michigan business
6 tax act, 2007 PA 36, MCL 208.1457, notwithstanding section 457(6)
7 of the Michigan business tax act, 2007 PA 36, MCL 208.1457.
8 (d) An application to enter into an agreement, a communication
9 denying an application to enter into an agreement, an agreement, a
10 qualified job training expenditures certificate, a communication
11 denying a qualified job training expenditures certificate, or the
12 total amount of credits claimed in a tax year under section 459 of
13 the Michigan business tax act, 2007 PA 36, MCL 208.1459,
14 notwithstanding section 459(6) of the Michigan business tax act,
15 2007 PA 36, MCL 208.1459.
16 (8) As used in subsection (1), "adjusted gross receipts" and
17 "wagering tax" mean those terms as described in the Michigan Gaming
18 Control and Revenue Act, 1996 IL 1, MCL 432.201 to 432.226.
19 Enacting section 1. This amendatory act does not take effect
20 unless both of the following bills of the 102nd Legislature are
21 enacted into law:
22 (a) Senate Bill No. 633.
23 (b) Senate Bill No.____ or House Bill No. 6233 (request no.
24 04808'23 *).
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Statutes affected:
House Introduced Bill: 205.28