May 30, 2007, Introduced by Senator PRUSI and referred to the Committee on Finance.
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 6a (MCL 205.6a), as added by 2006 PA 12.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6a. (1) A taxpayer may rely on a bulletin or letter
ruling issued by the department after September 30, 2006 and shall
not
be penalized subject to
tax, penalty, or interest for that
reliance until the bulletin or letter ruling is revoked in writing.
However, that reliance by the taxpayer is limited to issues
addressed in the bulletin or letter ruling for tax periods up to
the effective date of an amendment to the law upon which the
bulletin or letter ruling is based or for tax periods up to the
date of a final order of a court of competent jurisdiction for
which all rights of appeal have been exhausted or have expired that
overrules or modifies the law upon which the bulletin or letter
ruling is based.
(2) As used in this section:
(a) "Bulletin" means a revenue administrative bulletin.
(b) "Letter ruling" means a formal document issued by the
department to a specific taxpayer on a specific tax matter related
to a future transaction. A taxpayer shall request a letter ruling
on a form and in a manner prescribed by the department.