HOUSE BILL No. 4345


     February 18, 1997, Introduced by Reps. Kukuk, Callahan, Gilmer, Anthony, Green, Raczkowski, Gernaat, DeVuyst, Jaye and McNutt and referred to the Committee on Tax Policy.


        A bill to amend 1941 PA 122, entitled

   "An act to establish a revenue division of the department of
   treasury; to prescribe its powers and duties as the revenue col-
   lection agency of the state; to prescribe certain powers and
   duties of the state treasurer; to create the position and to
   define the powers and duties of the state commissioner of reve-
   nue; 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 liabili-
   ty; to provide an appropriation; to abolish the state board of
   tax administration; and to declare the effect of this act,"

   by amending section 3 (MCL 205.3), as amended by 1986 PA 58.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 3.  The commissioner shall have all the powers and per-

 2    form the duties formerly vested in  any  A department, board,

 3    commission, or other agency, in connection with taxes due to or

 4    claimed by the state and in connection with unpaid accounts or

 5    amounts due to the state or any of its departments, institutions,


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 1    or agencies which may be made payable to or collectible by the

 2    department created by this act.  , and  IN ADDITION, THE COMMIS-

 3    SIONER SHALL HAVE the power and authority incidental to the per-

 4    formance of ALL the following acts, duties, and services:

 5         (a) The commissioner or  any of the  A duly appointed

 6     agents  AGENT of the commissioner may examine the books,

 7    records, and papers touching the matter at issue of any person or

 8    taxpayer subject to any tax, unpaid account, or amount the col-

 9    lection of which is charged to the department.  The commissioner

10    or  any of the  A duly appointed  agents  AGENT of the commis-

11    sioner may issue a subpoena requiring a person to appear and be

12    examined with reference to a matter within the scope of the

13    inquiry or investigation being conducted by the department and to

14    produce any books, records, or papers.  The commissioner or  any

15     of the  A duly appointed  agents  AGENT,  referees  REFEREE, or

16     examiners  EXAMINER of the commissioner, may administer an oath

17    to a witness in any matter before the department.  The department

18    may invoke the aid of the circuit court of this state in requir-

19    ing the attendance and testimony of witnesses and the producing

20    of books, papers, and documents.  The circuit court of the state

21    within the jurisdiction of which an inquiry is carried on, in

22    case of contumacy or refusal to obey a subpoena, may issue an

23    order requiring the person to appear before the department and

24    produce books,  and  papers, AND DOCUMENTS if so ordered and any

25    evidence touching the matter in question, and failure to obey the

26    order of the court may be punished by the court as a contempt.  A

27    person shall not be excused from testifying or from producing any



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 1    books, papers, records, or memoranda in any investigation, or

 2    upon any hearing when ordered to do so by the commissioner, upon

 3    the ground that the testimony or evidence, documentary or other-

 4    wise, may tend to incriminate or subject him or her to a criminal

 5    penalty, however, a person shall not be prosecuted or subjected

 6    to any criminal penalty for or on account of any transaction made

 7    or thing concerning which he or she may testify or produce evi-

 8    dence, documentary or otherwise, before the  board  COMMISSIONER

 9    or  its  HIS OR HER agent.  A person so testifying shall not be

10    exempt from prosecution and punishment for perjury committed

11    while testifying.

12         (b) After reasonable notice and public hearing to promulgate

13    rules consistent with this act in accordance with  Act No. 306 of

14     the Public Acts of 1969, as amended, being sections 24.201 to

15     24.328 of the Michigan Compiled Laws  THE ADMINISTRATIVE PROCE-

16    DURES ACT OF 1969, 1969 PA 306, MCL 24.201 TO 24.328, as may be

17    necessary to the enforcement of the provisions of tax and other

18    revenue measures  which  THAT are administered by the

19    commissioner.

20         (c) Consult with the governor and the legislature  upon  ON

21    the subject of taxation, revenue, and the administration of the

22    laws in relation to taxation and revenue, and the progress of the

23    work of the department, including the furnishing of reports,

24    information, and other assistance as the governor may require.

25         (d) Investigate and study all matters of taxation and reve-

26    nue as the basis of recommending to the governor and the

27    legislature those changes and alterations in the tax laws of



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 1     the  THIS state as in the commissioner's judgment may bring

 2    about a more adequate and just system of state and local

 3    taxation.

 4         (e) Formulate a standard procedure  whereby  WHERE the

 5    departments, commissions, boards, institutions, and the agencies

 6    of  the  THIS state  which  THAT collect taxes, fees, or accounts

 7    for  the  THIS state shall report all sums of money due and

 8    uncollected and those uncollected items as may be prescribed by

 9    law and by the commissioner.  The procedure prescribed in this

10    subdivision shall include a standard practice for receiving,

11    receipting, safeguarding, and periodically reporting all state

12    revenue receipts, whether current, delinquent, penalty, interest,

13    or otherwise, and the amounts, kinds, and terms of items either

14    collected, compromised, or still outstanding, to be summarized,

15    studied, and reported upon as the commissioner considers

16    advisable.

17         (f) The  department  COMMISSIONER may periodically issue

18    bulletins that index and explain current department interpreta-

19    tions of current state tax laws.  A BULLETIN OR LETTER RULING

20    ISSUED BY THE COMMISSIONER UNDER THIS ACT REGARDING THE PAYMENT

21    OF A TAX SHALL APPLY PROSPECTIVELY AND SHALL NOT APPLY

22    RETROACTIVELY. The department may charge a reasonable fee for

23    subscriptions to this service not to exceed the cost of

24    printing.  The money received from the sale of such subscription

25    shall revert to the department and be placed in the taxation

26    manual revolving fund.





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