Michigan House Bill HB6232

Michigan 2023-2024 Regular Session

• Introduced: 12/4/24
• Refer: 12/4/24

Caption

Taxation: administration; disclosure of insurance-relevant information to the department of insurance and financial services; allow. Amends sec. 28 of 1941 PA 122 (MCL 205.28). TIE BAR WITH: SB 0633'23

Impact

The implications of HB 6232 on state laws include tighter controls regarding the tax administration process. By allowing for the disclosure of certain insurance information, the bill seeks to provide state agencies with better tools to assess tax liabilities and compliance. While this could lead to improved revenue collection, opponents might argue it raises concerns about privacy and the extent of data shared between agencies. Overall, the bill is expected to foster greater cooperation among state departments, thereby potentially increasing state revenue and ensuring better administration of tax laws.

Summary

House Bill 6232 is proposed legislation aimed at amending 1941 PA 122 to improve the administration of taxes within the state. Specifically, the bill focuses on allowing the disclosure of insurance-relevant information to the Department of Insurance and Financial Services. By enabling the exchange of this data, the legislation aims to enhance the efficiency of revenue collection and ensure compliance among taxpayers. The bill reaffirms the state's authority in tax-related administrative matters and seeks to create a more streamlined process for managing tax liabilities.

Enaction

It is noteworthy that this amendment to the taxation law will not take effect until it is tied to the passage of Senate Bill 633. This tie-bar approach signals the legislature's intent to maintain a comprehensive overhaul of tax-related acts, ensuring that various legislative measures work in unison for effective governance. The collaboration between House Bill 6232 and Senate Bill 633 might be perceived as a concerted effort to modernize and optimize state tax operations.

Contention

Key points of contention surrounding HB 6232 include concerns over personal privacy and the proper management of sensitive information. Critics may voice apprehensions regarding the potential misuse of disclosed insurance information, emphasizing the need for stringent controls on how this data is utilized. Additionally, some stakeholders may challenge the necessity of this legislative amendment, advocating for existing frameworks which they believe already provide adequate mechanisms for tax administration.