S.B. 2004 Enrolled

PROPERTY TAX - CONFIDENTIALITY OF
CERTAIN INFORMATION
2003 SECOND SPECIAL SESSION
STATE OF UTAH
Sponsor: Howard A. Stephenson

LONG TITLE
General Description:
This bill amends provisions of the Revenue and Taxation Code relating to
confidentiality of information.
Highlighted Provisions:
This bill:
. provides definitions;
. provides for the confidentiality of commercial information obtained from a property
taxpayer or information derived from that commercial information;
. provides exceptions to the confidentiality provisions;
. provides penalties for disclosing commercial information; and
. makes technical changes.
Monies Appropriated in this Bill:
None
Other Special Clauses:
This bill provides an effective date.
Utah Code Sections Affected:
AMENDS:
59-1-403 (Superseded 07/01/04), as last amended by Chapter 253, Laws of Utah 2003
59-1-403 (Effective 07/01/04 Cont. Sup. 05/05), as last amended by Chapter 312,
Laws of Utah 2003
59-1-403 (Contingently Effective 05/02/05), as last amended by Chapter 327, Laws of
Utah 2003

ENACTS:
59-1-404, Utah Code Annotated 1953
REPEALS:
59-2-206, as last amended by Chapter 241, Laws of Utah 1991

Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-1-403 (Superseded 07/01/04) is amended to read:
59-1-403 (Superseded 07/01/04). Confidentiality -- Exceptions -- Penalty --
Application to property tax.
(1) (a) Except as provided in this section, any of the following may not divulge or make
known in any manner any information gained by that person from any return filed with the
commission:
(i) a tax commissioner;
(ii) an agent, clerk, or other officer or employee of the commission; or
(iii) a representative, agent, clerk, or other officer or employee of any county, city, or
town.
(b) Except as provided in Subsection (1)(c), an official charged with the custody of a
return filed with the commission is not required to produce the return or evidence of anything
contained in the return in any action or proceeding in any court, except:
(i) in accordance with judicial order;
(ii) on behalf of the commission in any action or proceeding under:
(A) this title; or
(B) other law under which persons are required to file returns with the commission;
(iii) on behalf of the commission in any action or proceeding to which the commission is
a party; or
(iv) on behalf of any party to any action or proceeding under this title if the report or
facts shown by the return are directly involved in the action or proceeding.
(c) Notwithstanding Subsection (1)(b), a court may require the production of, and may

- 2 -

admit in evidence, any portion of a return or of the facts shown by the return, as are specifically
pertinent to the action or proceeding.
(2) This section does not prohibit:
(a) a person or that person's duly authorized representative from receiving a copy of any
return or report filed in connection with that person's own tax;
(b) the publication of statistics as long as the statistics are classified to prevent the
identification of particular reports or returns; and
(c) the inspection by the attorney general or other legal representative of the state of the
report or return of any taxpayer:
(i) who brings action to set aside or review a tax based on the report or return;
(ii) against whom an action or proceeding is contemplated or has been instituted under
this title; or
(iii) against whom the state has an unsatisfied money judgment.
(3) (a) Notwithstanding Subsection (1) and for purposes of administration, the
commission may by rule, made in accordance with Title 63, Chapter 46a, Utah Administrative
Rulemaking Act, provide for a reciprocal exchange of information with:
(i) the United States Internal Revenue Service; or
(ii) the revenue service of any other state.
(b) Notwithstanding Subsection (1) and for all taxes except individual income tax and
corporate franchise tax, the commission may by rule, made in accordance with Title 63, Chapter
46a, Utah Administrative Rulemaking Act, share information gathered from returns and other
written statements with the federal government, any other state, any of the political subdivisions
of another state, or any political subdivision of this state, except as limited by Sections 59-12-209
and 59-12-210 , if these political subdivisions or the federal government grant substantially
similar privileges to this state.
(c) Notwithstanding Subsection (1) and for all taxes except individual income tax and
corporate franchise tax, the commission may by rule, in accordance with Title 63, Chapter 46a,
Utah Administrative Rulemaking Act, provide for the issuance of information concerning the

- 3 -

identity and other information of taxpayers who have failed to file tax returns or to pay any tax
due.
(d) Notwithstanding Subsection (1), the commission shall provide to the Solid and
Hazardous Waste Control Board executive secretary, as defined in Section 19-6-102 , as
requested by the executive secretary, any records, returns, or other information filed with the
commission under Chapter 13, Motor and Special Fuel Tax Act, or Section 19-6-410.5 regarding
the environmental assurance program participation fee.
(e) Notwithstanding Subsection (1), at the request of any person the commission shall
provide that person sales and purchase volume data reported to the commission on a report,
return, or other information filed with the commission under:
(i) Chapter 13, Part 2, Motor Fuel; or
(ii) Chapter 13, Part 4, Aviation Fuel.
(f) Notwithstanding Subsection (1), upon request from a tobacco product manufacturer,
as defined in Section 59-22-202 , the commission shall report to the manufacturer:
(i) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
manufacturer and reported to the commission for the previous calendar year under Section
59-14-407 ; and
(ii) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
manufacturer for which a tax refund was granted during the previous calendar year under Section
59-14-401 and reported to the commission under Subsection 59-14-401 (1)(a)(v).
(g) Notwithstanding Subsection (1), the commission shall notify manufacturers,
distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited
from selling cigarettes to consumers within the state under Subsection 59-14-210 (2).
(h) Notwithstanding Subsection (1), the commission may:
(i) provide to the Division of Consumer Protection within the Department of Commerce
and the attorney general data:
(A) reported to the commission under Section 59-14-212 ; or
(B) related to a violation under Section 59-14-211 ; and

- 4 -

(ii) upon request provide to any person data reported to the commission under
Subsections 59-14-212 (1)(a) through (c) and Subsection 59-14-212 (1)(g).
(i) Notwithstanding Subsection (1), the commission shall, at the request of a committee
of the Legislature, Office of the Legislative Fiscal Analyst, or Governor's Office of Planning and
Budget, provide to the committee or office the total amount of revenues collected by the
commission under Chapter 24, Radioactive Waste Facility Tax Act, for the time period specified
by the committee or office.
(j) Notwithstanding Subsection (1), the commission shall at the request of the Legislature
provide to the Legislature the total amount of sales or uses exempt under Subsection
59-12-104 (52) reported to the commission in accordance with Section 59-12-105 .
(k) Notwithstanding Subsection (1), the commission shall make the list required by
Subsection 59-14-408 (3) available for public inspection.
(l) Notwithstanding Subsection (1), the commission shall comply with the reporting
requirements of Section 10-1-409 .
(4) (a) Reports and returns shall be preserved for at least three years.
(b) After the three-year period provided in Subsection (4)(a) the commission may destroy
a report or return.
(5) (a) Any person who violates this section is guilty of a class A misdemeanor.
(b) If the person described in Subsection (5)(a) is an officer or employee of the state, the
person shall be dismissed from office and be disqualified from holding public office in this state
for a period of five years thereafter.
(6) [This] Except as provided in Section 59-1-404 , this part does not apply to the
property tax.
Section 2. Section 59-1-403 (Effective 07/01/04 Cont. Sup. 05/05) is amended to read:
59-1-403 (Effective 07/01/04 Cont. Sup. 05/05). Confidentiality -- Exceptions --
Penalty -- Application to property tax.
(1) (a) Except as provided in this section, any of the following may not divulge or make
known in any manner any information gained by that person from any return filed with the

- 5 -

commission:
(i) a tax commissioner;
(ii) an agent, clerk, or other officer or employee of the commission; or
(iii) a representative, agent, clerk, or other officer or employee of any county, city, or
town.
(b) Except as provided in Subsection (1)(c), an official charged with the custody of a
return filed with the commission is not required to produce the return or evidence of anything
contained in the return in any action or proceeding in any court, except:
(i) in accordance with judicial order;
(ii) on behalf of the commission in any action or proceeding under:
(A) this title; or
(B) other law under which persons are required to file returns with the commission;
(iii) on behalf of the commission in any action or proceeding to which the commission is
a party; or
(iv) on behalf of any party to any action or proceeding under this title if the report or
facts shown by the return are directly involved in the action or proceeding.
(c) Notwithstanding Subsection (1)(b), a court may require the production of, and may
admit in evidence, any portion of a return or of the facts shown by the return, as are specifically
pertinent to the action or proceeding.
(2) This section does not prohibit:
(a) a person or that person's duly authorized representative from receiving a copy of any
return or report filed in connection with that person's own tax;
(b) the publication of statistics as long as the statistics are classified to prevent the
identification of particular reports or returns; and
(c) the inspection by the attorney general or other legal representative of the state of the
report or return of any taxpayer:
(i) who brings action to set aside or review a tax based on the report or return;
(ii) against whom an action or proceeding is contemplated or has been instituted under

- 6 -

this title; or
(iii) against whom the state has an unsatisfied money judgment.
(3) (a) Notwithstanding Subsection (1) and for purposes of administration, the
commission may by rule, made in accordance with Title 63, Chapter 46a, Utah Administrative
Rulemaking Act, provide for a reciprocal exchange of information with:
(i) the United States Internal Revenue Service; or
(ii) the revenue service of any other state.
(b) Notwithstanding Subsection (1) and for all taxes except individual income tax and
corporate franchise tax, the commission may by rule, made in accordance with Title 63, Chapter
46a, Utah Administrative Rulemaking Act, share information gathered from returns and other
written statements with the federal government, any other state, any of the political subdivisions
of another state, or any political subdivision of this state, except as limited by Sections 59-12-209
and 59-12-210 , if these political subdivisions or the federal government grant substantially
similar privileges to this state.
(c) Notwithstanding Subsection (1) and for all taxes except individual income tax and
corporate franchise tax, the commission may by rule, in accordance with Title 63, Chapter 46a,
Utah Administrative Rulemaking Act, provide for the issuance of information concerning the
identity and other information of taxpayers who have failed to file tax returns or to pay any tax
due.
(d) Notwithstanding Subsection (1), the commission shall provide to the Solid and
Hazardous Waste Control Board executive secretary, as defined in Section 19-6-102 , as
requested by the executive secretary, any records, returns, or other information filed with the
commission under Chapter 13, Motor and Special Fuel Tax Act, or Section 19-6-410.5 regarding
the environmental assurance program participation fee.
(e) Notwithstanding Subsection (1), at the request of any person the commission shall
provide that person sales and purchase volume data reported to the commission on a report,
return, or other information filed with the commission under:
(i) Chapter 13, Part 2, Motor Fuel; or

- 7 -

(ii) Chapter 13, Part 4, Aviation Fuel.
(f) Notwithstanding Subsection (1), upon request from a tobacco product manufacturer,
as defined in Section 59-22-202 , the commission shall report to the manufacturer:
(i) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
manufacturer and reported to the commission for the previous calendar year under Section
59-14-407 ; and
(ii) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
manufacturer for which a tax refund was granted during the previous calendar year under Section
59-14-401 and reported to the commission under Subsection 59-14-401 (1)(a)(v).
(g) Notwithstanding Subsection (1), the commission shall notify manufacturers,
distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited
from selling cigarettes to consumers within the state under Subsection 59-14-210 (2).
(h) Notwithstanding Subsection (1), the commission may:
(i) provide to the Division of Consumer Protection within the Department of Commerce
and the attorney general data:
(A) reported to the commission under Section 59-14-212 ; or
(B) related to a violation under Section 59-14-211 ; and
(ii) upon request provide to any person data reported to the commission under
Subsections 59-14-212 (1)(a) through (c) and Subsection 59-14-212 (1)(g).
(i) Notwithstanding Subsection (1), the commission shall, at the request of a committee
of the Legislature, Office of the Legislative Fiscal Analyst, or Governor's Office of Planning and
Budget, provide to the committee or office the total amount of revenues collected by the
commission under Chapter 24, Radioactive Waste Facility Tax Act, for the time period specified
by the committee or office.
(j) Notwithstanding Subsection (1), the commission shall at the request of the Legislature
provide to the Legislature the total amount of sales or uses exempt under Subsection
59-12-104 (51) reported to the commission in accordance with Section 59-12-105 .
(k) Notwithstanding Subsection (1), the commission shall make the list required by

- 8 -

Subsection 59-14-408 (3) available for public inspection.
(l) Notwithstanding Subsection (1), the commission shall comply with the reporting
requirements of Section 10-1-409 .
(4) (a) Reports and returns shall be preserved for at least three years.
(b) After the three-year period provided in Subsection (4)(a) the commission may destroy
a report or return.
(5) (a) Any person who violates this section is guilty of a class A misdemeanor.
(b) If the person described in Subsection (5)(a) is an officer or employee of the state, the
person shall be dismissed from office and be disqualified from holding public office in this state
for a period of five years thereafter.
(6) [This] Except as provided in Section 59-1-404 , this part does not apply to the
property tax.
Section 3. Section 59-1-403 (Contingently Effective 05/02/05) is amended to read:
59-1-403 (Contingently Effective 05/02/05). Confidentiality -- Exceptions -- Penalty
-- Application to property tax.
(1) (a) Except as provided in this section, any of the following may not divulge or make
known in any manner any information gained by that person from any return filed with the
commission:
(i) a tax commissioner;
(ii) an agent, clerk, or other officer or employee of the commission; or
(iii) a representative, agent, clerk, or other officer or employee of any county, city, or
town.
(b) Except as provided in Subsection (1)(c), an official charged with the custody of a
return filed with the commission is not required to produce the return or evidence of anything
contained in the return in any action or proceeding in any court, except:
(i) in accordance with judicial order;
(ii) on behalf of the commission in any action or proceeding under:
(A) this title; or

- 9 -

(B) other law under which persons are required to file returns with the commission;
(iii) on behalf of the commission in any action or proceeding to which the commission is
a party; or
(iv) on behalf of any party to any action or proceeding under this title if the report or
facts shown by the return are directly involved in the action or proceeding.
(c) Notwithstanding Subsection (1)(b), a court may require the production of, and may
admit in evidence, any portion of a return or of the facts shown by the return, as are specifically
pertinent to the action or proceeding.
(2) This section does not prohibit:
(a) a person or that person's duly authorized representative from receiving a copy of any
return or report filed in connection with that person's own tax;
(b) the publication of statistics as long as the statistics are classified to prevent the
identification of particular reports or returns; and
(c) the inspection by the attorney general or other legal representative of the state of the
report or return of any taxpayer:
(i) who brings action to set aside or review a tax based on the report or return;
(ii) against whom an action or proceeding is contemplated or has been instituted under
this title; or
(iii) against whom the state has an unsatisfied money judgment.
(3) (a) Notwithstanding Subsection (1) and for purposes of administration, the
commission may by rule, made in accordance with Title 63, Chapter 46a, Utah Administrative
Rulemaking Act, provide for a reciprocal exchange of information with:
(i) the United States Internal Revenue Service; or
(ii) the revenue service of any other state.
(b) Notwithstanding Subsection (1) and for all taxes except individual income tax and
corporate franchise tax, the commission may by rule, made in accordance with Title 63, Chapter
46a, Utah Administrative Rulemaking Act, share information gathered from returns and other
written statements with the federal government, any other state, any of the political subdivisions

- 10 -

of another state, or any political subdivision of this state, except as limited by Sections 59-12-209
and 59-12-210 , if these political subdivisions or the federal government grant substantially
similar privileges to this state.
(c) Notwithstanding Subsection (1) and for all taxes except individual income tax and
corporate franchise tax, the commission may by rule, in accordance with Title 63, Chapter 46a,
Utah Administrative Rulemaking Act, provide for the issuance of information concerning the
identity and other information of taxpayers who have failed to file tax returns or to pay any tax
due.
(d) Notwithstanding Subsection (1), the commission shall provide to the Solid and
Hazardous Waste Control Board executive secretary, as defined in Section 19-6-102 , as
requested by the executive secretary, any records, returns, or other information filed with the
commission under Chapter 13, Motor and Special Fuel Tax Act, or Section 19-6-410.5 regarding
the environmental assurance program participation fee.
(e) Notwithstanding Subsection (1), at the request of any person the commission shall
provide that person sales and purchase volume data reported to the commission on a report,
return, or other information filed with the commission under:
(i) Chapter 13, Part 2, Motor Fuel; or
(ii) Chapter 13, Part 4, Aviation Fuel.
(f) Notwithstanding Subsection (1), upon request from a tobacco product manufacturer,
as defined in Section 59-22-202 , the commission shall report to the manufacturer:
(i) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
manufacturer and reported to the commission for the previous calendar year under Section
59-14-407 ; and
(ii) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
manufacturer for which a tax refund was granted during the previous calendar year under Section
59-14-401 and reported to the commission under Subsection 59-14-401 (1)(a)(v).
(g) Notwithstanding Subsection (1), the commission shall notify manufacturers,
distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited

- 11 -

from selling cigarettes to consumers within the state under Subsection 59-14-210 (2).
(h) Notwithstanding Subsection (1), the commission may:
(i) provide to the Division of Consumer Protection within the Department of Commerce
and the attorney general data:
(A) reported to the commission under Section 59-14-212 ; or
(B) related to a violation under Section 59-14-211 ; and
(ii) upon request provide to any person data reported to the commission under
Subsections 59-14-212 (1)(a) through (c) and Subsection 59-14-212 (1)(g).
(i) Notwithstanding Subsection (1), the commission shall, at the request of a committee
of the Legislature, Office of the Legislative Fiscal Analyst, or Governor's Office of Planning and
Budget, provide to the committee or office the total amount of revenues collected by the
commission under Chapter 24, Radioactive Waste Facility Tax Act, for the time period specified
by the committee or office.
(j) Notwithstanding Subsection (1), the commission shall at the request of the Legislature
provide to the Legislature the total amount of sales or uses exempt under Subsection
59-12-104 (51) reported to the commission in accordance with Section 59-12-105 .
(k) Notwithstanding Subsection (1), the commission shall make the list required by
Subsection 59-14-408 (3) available for public inspection.
(l) Notwithstanding Subsection (1), the commission shall comply with the reporting
requirements of Section 10-1-409 .
(m) Notwithstanding Subsection (1), the commission shall provide the notice to the
commissioner of the Department of Financial Institutions required by Subsection 7-9-56 (6).
(4) (a) Reports and returns shall be preserved for at least three years.
(b) After the three-year period provided in Subsection (4)(a) the commission may destroy
a report or return.
(5) (a) Any person who violates this section is guilty of a class A misdemeanor.
(b) If the person described in Subsection (5)(a) is an officer or employee of the state, the
person shall be dismissed from office and be disqualified from holding public office in this state

- 12 -

for a period of five years thereafter.
(6) [This] Except as provided in Section 59-1-404 , this part does not apply to the
property tax.
Section 4. Section 59-1-404 is enacted to read:
59-1-404. Definitions -- Confidentiality of commercial information obtained from a
property taxpayer or derived from the commercial information -- Exceptions -- Penalty.
(1) As used in this section, "commercial information" means:
(a) information of a commercial nature obtained from a property taxpayer; or
(b) information derived from the information described in Subsection (1)(a).
(2) Except as provided in Subsections (3) through (8), an individual listed under
Subsection 59-1-403 (1)(a) may not disclose commercial information.
(3) Notwithstanding Subsection (2), an individual listed under Subsection 59-1-403 (1)(a)
may disclose the following information:
(a) the assessed value of property;
(b) the amount of tax assessed on property;
(c) the tax rate imposed on property;
(d) a legal description of property;
(e) a physical description of property; or
(f) the square footage of property.
(4) (a) Notwithstanding Subsection (2) and except as provided in Subsection (4)(b), an
individual listed under Subsection 59-1-403 (1)(a) shall disclose commercial information:
(i) in accordance with judicial order;
(ii) on behalf of the commission in any action or proceeding:
(A) under this title;
(B) under another law under which a property taxpayer is required to disclose
commercial information; or
(C) to which the commission is a party; or
(iii) on behalf of any party to any action or proceeding under this title if the commercial

- 13 -

information is directly involved in the action or proceeding.
(b) Notwithstanding Subsection (4)(a), a court may require the production of, and may
admit in evidence, commercial information that is specifically pertinent to the action or
proceeding.
(5) Notwithstanding Subsection (2), this section does not prohibit:
(a) a property taxpayer or that property taxpayer's duly authorized representative from
receiving a copy of any commercial information relating to the property taxpayer's own tax;
(b) the publication of statistics as long as the statistics are classified to prevent the
identification of:
(i) a property taxpayer's commercial information; or
(ii) a property taxpayer; and
(c) the inspection by the attorney general or other legal representative of the state of the
commercial information of a property taxpayer:
(i) that brings action to set aside or review a tax based on the commercial information;
(ii) against which an action or proceeding is contemplated or has been instituted under
this title; or
(iii) against which the state has an unsatisfied money judgment.
(6) Notwithstanding Subsection (2), the commission may by rule, made in accordance
with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, provide for the issuance of
information concerning the identity and other property tax information of a property taxpayer that
has failed to file a property tax return or pay any property tax due.
(7) Notwithstanding Subsection (2), in accordance with Title 63, Chapter 46a, Utah
Administrative Rulemaking Act, the commission may by rule establish standards authorizing an
individual listed under Subsection 59-1-403 (1)(a) to disclose commercial information:
(a) (i) in a published decision; or
(ii) in carrying out official duties; and
(b) if that individual listed under Subsection 59-1-403 (1)(a) consults with the property
taxpayer that provided the commercial information.

- 14 -

(8) Notwithstanding Subsection (2), the commission may:
(a) share commercial information with a county assessor in accordance with the authority
provided in Chapter 2, Property Tax Act; or
(b) by rule, made in accordance with Title 63, Chapter 46a, Utah Administrative
Rulemaking Act, share commercial information gathered from returns and other written
statements with the federal government, any other state, any of the political subdivisions of
another state, or any political subdivision of this state, if these political subdivisions or the
federal government grant substantially similar privileges to this state.
(9) (a) Any individual listed under Subsection 59-1-403 (1)(a) who violates this section is
guilty of a class A misdemeanor.
(b) If the individual described in Subsection (9)(a) is an officer or employee of the state
or a county, the individual shall be dismissed from office and be disqualified from holding public
office in this state for a period of five years thereafter.
Section 5. Repealer.
This bill repeals:
Section 59-2-206, Confidentiality -- Penalties for disclosure.
Section 6. Effective date.
(1) Except as provided in Subsections (2) and (3), if approved by two-thirds of all the
members elected to each house, this bill takes effect upon approval by the governor, or the day
following the constitutional time limit of Utah Constitution Article VII, Section 8, without the
governor's signature, or in the case of a veto, the date of veto override.
(2) Notwithstanding Subsection (1), the amendments in this bill to Section 59-1-403
(Effective 07/01/04 Cont. Sup. 05/05) take effect on July 1, 2004.
(3) Notwithstanding Subsection (1), the amendments in this bill to Section 59-1-403
(Contingently Effective 05/02/05) take effect as provided in Chapter 327, Section 30, Laws of
Utah 2003.

- 15 -