SB-0737, As Passed Senate, June 7, 2016

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 737

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 25 (MCL 205.25), as amended by 2002 PA 657.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 25. (1) The state treasurer, or an authorized

representative of the state treasurer, may cause a demand to be

made on a taxpayer for the payment of a tax, unpaid account, or

amount due the state or any of its departments, institutions, or

agencies, subject to administration under this act. If the

liability remains unpaid for 10 days after the demand and

proceedings are not taken to review the liability, the state

treasurer or an authorized representative of the state treasurer

may issue a warrant under the official seal of that office. Except

as provided in subsection (5), the state treasurer or an authorized

representative of the state treasurer, through any state officer

authorized to serve process or through his or her authorized

employees, may levy on all property and rights to property, real

and personal, tangible and intangible, belonging to the taxpayer or

on which a lien is provided by law for the amount of the

deficiency, and sell the real and personal property of the taxpayer

found within the state for the payment of the amount due, the cost

of executing the warrant, recording or filing fees, and the

additional penalties and interest. Except as provided in subsection

(6), the officer or agent serving the warrant shall proceed upon

the warrant in all respects and in the same manner as prescribed by

law in respect to executions issued against property upon judgments

by a court of record. ~~The~~ This state, through the state treasurer

or an authorized representative of the state treasurer, may bid for

and purchase any property sold pursuant to this section.

(2) A person who refuses or fails to surrender any property or

rights to property subject to levy, upon demand by the state

treasurer or an authorized representative of the state treasurer,

is personally liable to ~~the~~ this state in a sum equal to the value

of the property or rights not surrendered, but not exceeding the

amount due for which the levy was made, together with costs and

interest on the sum at the rate provided in section 23(2) from the

date of the levy. Any amount, other than costs, recovered under

this subsection shall be credited against the liability for the

collection of which the levy was made.

(3) In addition to the personal liability imposed by

subsection (2), if a person required to surrender property or

rights to property fails or refuses to surrender the property or

rights to property without reasonable cause, the person shall be

liable for a penalty equal to 50% of the amount recoverable under

subsection (2), none of which penalty shall be credited against the

liability for the collection of which the levy was made.

(4) A person in possession of, or obligated with respect to,

property or property rights subject to levy and upon which a levy

has been made who, upon demand of the state treasurer or an

authorized representative of the state treasurer, surrenders the

property or rights to property or discharges the obligation to the

state treasurer or an authorized representative of the state

treasurer or who pays a liability under subsection (1) shall have

his or her obligation to a person delinquent in payment of a tax or

other account reduced in an amount equal to the property or rights

to property surrendered or amounts paid to the state.

(5) There shall be exempt from levy under this section:

(a) For an unpaid tax, the type of property and the amount of

that property as provided in section 6334 of the internal revenue

code of 1986.

(b) For an unpaid account, or amount due the state or any of

its departments other than an unpaid tax, disposable earnings to

the extent provided in section 303 of title III of the consumer

credit protection act, 82 ~~Stat.~~ Stat 163, 15 ~~U.S.C.~~ USC 1673.

continuous from the date the levy is first made until the liability

out of which the levy arose is satisfied.

(6) A warrant-notice of levy may be served by certified mail,

return receipt requested, on any person in possession of, or

obligated with respect to, property and rights to property, real

and personal, tangible and intangible, belonging to the taxpayer or

on which a lien is provided by law. The date of delivery on the

receipt shall be the date the levy is made. A person may, upon

written notice to the state treasurer, have all notices of levy by

mail sent to 1 designated office.

Enacting section 1. This amendatory act takes effect October

1, 2016.

Enacting section 2. This amendatory act does not take effect

unless Senate Bill No. 599 of the 98th Legislature is enacted into

law.