Bill Text: MI HB5398 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Taxation; other; disclosure of identity of delinquent taxpayer; permit. Amends sec. 28 of 1941 PA 122 (MCL 205.28) & adds sec. 3b.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-09-22 - Printed Bill Filed 09/18/2009 [HB5398 Detail]

Download: Michigan-2009-HB5398-Introduced.html

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HOUSE BILL No. 5398

 

September 17, 2009, Introduced by Rep. Cushingberry 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 28 (MCL 205.28), as amended by 2003 PA 114, and

 

by adding section 3b.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3b. (1) The department of treasury may disclose a list of

 

all taxpayers that are delinquent in the payment of tax liabilities

 

collected by the department. The list may include those taxpayers

 

with account balances for all taxes collected by the department

 

including penalties and interest totaling greater than $100,000.00

 

for a period in excess of 180 days from the date of the final tax

 

assessment. The list may contain the name, last known address, and

 

total account balance of each delinquent taxpayer and, in the case

 

of a business taxpayer, may include the name of any taxpayers or

 

individuals assessed a liability under section 27a(1) or (5).

 

     (2) Not less than 90 days before the disclosure of the name of

 

a delinquent taxpayer prescribed in subsection (1), the department

 

shall mail a written notice to the delinquent taxpayer at his or

 

her last known address informing the taxpayer of the total account

 

balance and the intended disclosure of the delinquency. If the

 

account balance has not been paid within 60 days after the notice

 

was mailed and the taxpayer has not, since the mailing of the

 

notice, either entered into in a written agreement with the

 

department for payment of the delinquency or corrected a default in

 

an existing agreement to the satisfaction of the department, the

 

department may disclose the taxpayer in the list of delinquent

 

taxpayers.

 

     (3) Unpaid taxes may not be disclosed if 1 or more of the

 

following apply:

 

     (a) A written agreement for payment exists without default

 

between the taxpayer and the department.

 

     (b) The tax liability is the subject of an informal

 

conference, administrative review, or judicial review provided for

 

in this act, or an appeal of any of these proceedings.

 

     (c) The department has received written notice that the

 

taxpayer has filed for bankruptcy protection.

 

     (4) The list may be available for public inspection at the

 

department and by other means of publication, including the

 

internet. In the case of a business taxpayer, the department may

 

post written notice of the delinquency in a conspicuous location at

 

the taxpayer's business premises.

 

     (5) The name of a taxpayer shall be removed within 30 days

 

after 1 of the following:

 

     (a) The payment of the debt.

 

     (b) The taxpayer otherwise meets 1 of the conditions described

 

in subsection (3).

 

     (6) If the department has placed the name of a taxpayer on the

 

list erroneously, the name of that taxpayer shall be removed within

 

7 days after the department receives written information

 

establishing that the taxpayer was listed erroneously.

 

     (7) Any disclosure made by an employee of the department in a

 

good faith effort to comply with this section shall not be

 

considered a violation of any statute prohibiting disclosure of

 

taxpayer information including section 28(1)(f).

 

     Sec. 28. (1) The following conditions apply to all taxes

 

administered under this act unless otherwise provided for in the

 

specific tax statute:

 

     (a) Notice, if required, shall be given either by personal

 

service or by certified mail addressed to the last known address of

 

the taxpayer. Service upon the department may be made in the same

 

manner.

 

     (b) An injunction shall not issue to stay proceedings for the

 

assessment and collection of a tax.

 

     (c) In addition to the mode of collection provided in this

 

act, the department may institute an action at law in any county in

 

which the taxpayer resides or transacts business.

 

     (d) The state treasurer may request in writing information or

 

records in the possession of any other department, institution, or

 

agency of state government for the performance of duties under this

 

act. Departments, institutions, or agencies of state government

 

shall furnish the information and records upon receipt of the state

 

treasurer's request. Upon request of the state treasurer, any

 

department, institution, or agency of state government shall hold a

 

hearing under the administrative procedures act of 1969, 1969 PA

 

306, MCL 24.201 to 24.328, to consider withholding a license or

 

permit of a person for nonpayment of taxes or accounts collected

 

under this act.

 

     (e) Except as otherwise provided in section 30c, the state

 

treasurer or an employee of the department shall not compromise or

 

reduce in any manner the taxes due to or claimed by this state or

 

unpaid accounts or amounts due to any department, institution, or

 

agency of state government. This subdivision does not prevent a

 

compromise of interest or penalties, or both.

 

     (f) Except as otherwise provided in this subdivision, an

 

employee, authorized representative, or former employee or

 

authorized representative of the department or anyone connected

 

with the department shall not divulge any facts or information

 

obtained in connection with the administration of a tax or

 

information or parameters that would enable a person to ascertain

 

the audit selection or processing criteria of the department for a

 

tax administered by the department. An employee or authorized

 

representative shall not willfully inspect any return or

 

information contained in a return unless it is appropriate for the

 

proper administration of a tax law administered under this act. A

 

person may disclose information described in this subdivision if

 

the disclosure is permitted under section 3b or is required for the

 

proper administration of a tax law administered under this act or

 

the general property tax act, 1893 PA 206, MCL 211.1 to 211.157

 

211.155, pursuant to a judicial order sought by an agency charged

 

with the duty of enforcing or investigating support obligations

 

pursuant to an order of a court in a domestic relations matter as

 

that term is defined in section 2 of the friend of the court act,

 

1982 PA 294, MCL 552.502, or pursuant to a judicial order sought by

 

an agency of the federal, state, or local government charged with

 

the responsibility for the administration or enforcement of

 

criminal law for purposes of investigating or prosecuting criminal

 

matters or for federal or state grand jury proceedings or a

 

judicial order if the taxpayer's liability for a tax administered

 

under this act is to be adjudicated by the court that issued the

 

judicial order. A person may disclose the adjusted gross receipts

 

and the wagering tax paid by a casino licensee licensed under the

 

Michigan gaming control and revenue act, the Initiated Law of 1996

 

IL 1, MCL 432.201 to 432.226, pursuant to section 18, sections 341,

 

342, and 386 of the management and budget act, 1984 PA 431, MCL

 

18.1341, 18.1342, and 18.1386, or authorization by the executive

 

director of the gaming control board. However, the state treasurer

 

or a person designated by the state treasurer may divulge

 

information set forth or disclosed in a return or report or by an

 

investigation or audit to any department, institution, or agency of

 

state government upon receipt of a written request from a head of

 

the department, institution, or agency of state government if it is

 

required for the effective administration or enforcement of the

 

laws of this state, to a proper officer of the United States

 

department of treasury, and to a proper officer of another state

 

reciprocating in this privilege. The state treasurer may enter into

 

reciprocal agreements with other departments of state government,

 

the United States department of treasury, local governmental units

 

within this state, or taxing officials of other states for the

 

enforcement, collection, and exchange of data after ascertaining

 

that any information provided will be subject to confidentiality

 

restrictions substantially the same as the provisions of this act.

 

     (2) A person who violates subsection (1)(e), (1)(f), or (4) is

 

guilty of a felony, punishable by a fine of not more than

 

$5,000.00, or imprisonment for not more than 5 years, or both,

 

together with the costs of prosecution. In addition, if the offense

 

is committed by an employee of this state, the person shall be

 

dismissed from office or discharged from employment upon

 

conviction.

 

     (3) A person liable for any tax administered under this act

 

shall keep accurate and complete records necessary for the proper

 

determination of tax liability as required by law or rule of the

 

department.

 

     (4) A person who receives information under subsection (1)(f)

 

for the proper administration of the general property tax act, 1893

 

PA 206, MCL 211.1 to 211.157 211.155, shall not willfully disclose

 

that information for any purpose other than the administration of

 

the general property tax act, 1893 PA 206, MCL 211.1 to 211.157

 

211.155. A person who violates this subsection is subject to the

 

penalties provided in subsection (2).

 

     (5) As used in subsection (1), "adjusted gross receipts" and

 

"wagering tax" mean those terms as described in the Michigan gaming

 

control and revenue act, the Initiated Law of 1996 IL 1, MCL

 

432.201 to 432.226.