S.B. 3002 Enrolled

1

ACCESS TO INFORMATION GAINED BY THE
2 STATE TAX COMMISSION FROM RETURNS
3 2006 THIRD SPECIAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Curtis S. Bramble
6 House Sponsor: Wayne A. Harper
7
8 LONG TITLE
9 General Description:
10 This bill amends the Revenue and Taxation title to allow the Office of the Legislative
11 Fiscal Analyst and the Office of Legislative Research and General Counsel to receive
12 under certain circumstances information gained by the State Tax Commission that is
13 required to be attached to or included in returns filed with the State Tax Commission.
14 Highlighted Provisions:
15 This bill:
16 . defines terms;
17 . allows the following offices to receive under certain circumstances information
18 gained by the State Tax Commission that is required to be attached to or included in
19 returns filed with the State Tax Commission:
20 . the Office of the Legislative Fiscal Analyst; and
21 . the Office of Legislative Research and General Counsel;
22 . provides that an office may not request and the State Tax Commission may not
23 disclose a person's:
24 . address;
25 . name;
26 . Social Security number; or
27 . taxpayer identification number;
28 . requires the State Tax Commission to protect the privacy of a person by not
29 disclosing the information described in the above paragraph;

30 . limits the ability of an office to provide information:
31 . gained by the State Tax Commission that is required to be attached to or
32 included in returns filed with the State Tax Commission; and
33 . that the office receives from the State Tax Commission;
34 . addresses the circumstances under which a person may request from an office
35 information:
36 . gained by the State Tax Commission that is required to be attached to or
37 included in returns filed with the State Tax Commission; and
38 . that the office receives from the State Tax Commission;
39 . provides that penalty provisions do not apply under certain circumstances; and
40 . makes technical changes.
41 Monies Appropriated in this Bill:
42 None
43 Other Special Clauses:
44 This bill provides an immediate effective date.
45 Utah Code Sections Affected:
46 AMENDS:
47 59-1-403, as last amended by Chapters 44, 55, 181 and 182, Laws of Utah 2006
48
49 Be it enacted by the Legislature of the state of Utah:
50 Section 1. Section 59-1-403 is amended to read:
51 59-1-403. Confidentiality -- Exceptions -- Penalty -- Application to property tax.
52 (1) (a) [Except as provided in this section, any] Any of the following may not divulge
53 or make known in any manner any information gained by that person from any return filed with
54 the commission:
55 (i) a tax commissioner;
56 (ii) an agent, clerk, or other officer or employee of the commission; or
57 (iii) a representative, agent, clerk, or other officer or employee of any county, city, or

58 town.
59 (b) [Except as provided in Subsection (1)(c), an] An official charged with the custody
60 of a return filed with the commission is not required to produce the return or evidence of
61 anything contained in the return in any action or proceeding in any court, except:
62 (i) in accordance with judicial order;
63 (ii) on behalf of the commission in any action or proceeding under:
64 (A) this title; or
65 (B) other law under which persons are required to file returns with the commission;
66 (iii) on behalf of the commission in any action or proceeding to which the commission
67 is a party; or
68 (iv) on behalf of any party to any action or proceeding under this title if the report or
69 facts shown by the return are directly involved in the action or proceeding.
70 (c) Notwithstanding Subsection (1)(b), a court may require the production of, and may
71 admit in evidence, any portion of a return or of the facts shown by the return, as are specifically
72 pertinent to the action or proceeding.
73 (2) This section does not prohibit:
74 (a) a person or that person's duly authorized representative from receiving a copy of
75 any return or report filed in connection with that person's own tax;
76 (b) the publication of statistics as long as the statistics are classified to prevent the
77 identification of particular reports or returns; and
78 (c) the inspection by the attorney general or other legal representative of the state of the
79 report or return of any taxpayer:
80 (i) who brings action to set aside or review a tax based on the report or return;
81 (ii) against whom an action or proceeding is contemplated or has been instituted under
82 this title; or
83 (iii) against whom the state has an unsatisfied money judgment.
84 (3) (a) Notwithstanding Subsection (1) and for purposes of administration, the
85 commission may by rule, made in accordance with Title 63, Chapter 46a, Utah Administrative

86 Rulemaking Act, provide for a reciprocal exchange of information with:
87 (i) the United States Internal Revenue Service; or
88 (ii) the revenue service of any other state.
89 (b) Notwithstanding Subsection (1) and for all taxes except individual income tax and
90 corporate franchise tax, the commission may by rule, made in accordance with Title 63,
91 Chapter 46a, Utah Administrative Rulemaking Act, share information gathered from returns
92 and other written statements with the federal government, any other state, any of the political
93 subdivisions of another state, or any political subdivision of this state, except as limited by
94 Sections 59-12-209 and 59-12-210 , if [these] the political [subdivisions] subdivision, other
95 state, or the federal government grant substantially similar privileges to this state.
96 (c) Notwithstanding Subsection (1) and for all taxes except individual income tax and
97 corporate franchise tax, the commission may by rule, in accordance with Title 63, Chapter 46a,
98 Utah Administrative Rulemaking Act, provide for the issuance of information concerning the
99 identity and other information of taxpayers who have failed to file tax returns or to pay any tax
100 due.
101 (d) Notwithstanding Subsection (1), the commission shall provide to the Solid and
102 Hazardous Waste Control Board executive secretary, as defined in Section 19-6-102 , as
103 requested by the executive secretary, any records, returns, or other information filed with the
104 commission under Chapter 13, Motor and Special Fuel Tax Act, or Section 19-6-410.5
105 regarding the environmental assurance program participation fee.
106 (e) Notwithstanding Subsection (1), at the request of any person the commission shall
107 provide that person sales and purchase volume data reported to the commission on a report,
108 return, or other information filed with the commission under:
109 (i) Chapter 13, Part 2, Motor Fuel; or
110 (ii) Chapter 13, Part 4, Aviation Fuel.
111 (f) Notwithstanding Subsection (1), upon request from a tobacco product manufacturer,
112 as defined in Section 59-22-202 , the commission shall report to the manufacturer:
113 (i) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the

114 manufacturer and reported to the commission for the previous calendar year under Section
115 59-14-407 ; and
116 (ii) the quantity of cigarettes, as defined in Section 59-22-202 , produced by the
117 manufacturer for which a tax refund was granted during the previous calendar year under
118 Section 59-14-401 and reported to the commission under Subsection 59-14-401 (1)(a)(v).
119 (g) Notwithstanding Subsection (1), the commission shall notify manufacturers,
120 distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited
121 from selling cigarettes to consumers within the state under Subsection 59-14-210 (2).
122 (h) Notwithstanding Subsection (1), the commission may:
123 (i) provide to the Division of Consumer Protection within the Department of
124 Commerce and the attorney general data:
125 (A) reported to the commission under Section 59-14-212 ; or
126 (B) related to a violation under Section 59-14-211 ; and
127 (ii) upon request provide to any person data reported to the commission under
128 Subsections 59-14-212 (1)(a) through (c) and Subsection 59-14-212 (1)(g).
129 (i) Notwithstanding Subsection (1), the commission shall, at the request of a committee
130 of the Legislature, Office of the Legislative Fiscal Analyst, or Governor's Office of Planning
131 and Budget, provide to the committee or office the total amount of revenues collected by the
132 commission under Chapter 24, Radioactive Waste Facility Tax Act, for the time period
133 specified by the committee or office.
134 (j) Notwithstanding Subsection (1), the commission shall at the request of the
135 Legislature provide to the Legislature the total amount of sales or uses exempt under
136 Subsection 59-12-104 (46) reported to the commission in accordance with Section 59-12-105 .
137 (k) Notwithstanding Subsection (1), the commission shall make the directory required
138 by Section 59-14-603 available for public inspection.
139 (l) Notwithstanding Subsection (1), the commission shall comply with the reporting
140 requirements of Section 10-1-409 .
141 (m) Notwithstanding Subsection (1), the commission may share information with

142 federal, state, or local agencies as provided in Subsection 59-14-606 (3).
143 (n) (i) Notwithstanding Subsection (1), the commission shall provide the Office of
144 Recovery Services within the Department of Human Services any relevant information
145 obtained from a return filed under Chapter 10, Individual Income Tax Act, regarding a taxpayer
146 who has become obligated to the Office of Recovery Services.
147 (ii) The information described in Subsection (3)(n)(i) may be provided by the Office of
148 Recovery Services to any other state's child support collection agency involved in enforcing
149 that support obligation.
150 (o) (i) Notwithstanding Subsection (1), upon request from the state court administrator,
151 the commission shall provide to the state court administrator, the name, address, telephone
152 number, county of residence, and Social Security number on resident returns filed under
153 Chapter 10, Individual Income Tax Act.
154 (ii) The state court administrator may use the information described in Subsection
155 (3)(o)(i) only as a source list for the master jury list described in Section 78-46-10 .
156 (p) Notwithstanding Subsection (1), the commission shall at the request of a
157 committee, commission, or task force of the Legislature provide to the committee, commission,
158 or task force of the Legislature any information relating to a tax imposed under Chapter 9,
159 Taxation of Admitted Insurers, relating to the study required by Section 59-9-101 .
160 (q) (i) As used in this Subsection (3)(q), "office" means the:
161 (A) Office of the Legislative Fiscal Analyst; or
162 (B) Office of Legislative Research and General Counsel.
163 (ii) Notwithstanding Subsection (1) and except as provided in Subsection (3)(q)(iii),
164 the commission shall at the request of an office provide to the office all information:
165 (A) gained by the commission; and
166 (B) required to be attached to or included in returns filed with the commission.
167 (iii) (A) An office may not request and the commission may not provide to an office a
168 person's:
169 (I) address;

170 (II) name;
171 (III) Social Security number; or
172 (IV) taxpayer identification number.
173 (B) The commission shall in all instances protect the privacy of a person as required by
174 Subsection (3)(q)(iii)(A).
175 (iv) An office may provide information received from the commission in accordance
176 with this Subsection (3)(q) only:
177 (A) as:
178 (I) a fiscal estimate;
179 (II) fiscal note information; or
180 (III) statistical information; and
181 (B) if the information is classified to prevent the identification of a particular return.
182 (v) (A) A person may not request information from an office under Title 63, Chapter 2,
183 Government Records Access and Management Act, or this section, if that office received the
184 information from the commission in accordance with this Subsection (3)(q).
185 (B) An office may not provide to a person that requests information in accordance with
186 Subsection (3)(q)(v)(A) any information other than the information the office provides in
187 accordance with Subsection (3)(q)(iv).
188 (4) (a) Reports and returns shall be preserved for at least three years.
189 (b) After the three-year period provided in Subsection (4)(a) the commission may
190 destroy a report or return.
191 (5) (a) Any person who violates this section is guilty of a class A misdemeanor.
192 (b) If the person described in Subsection (5)(a) is an officer or employee of the state,
193 the person shall be dismissed from office and be disqualified from holding public office in this
194 state for a period of five years thereafter.
195 (c) Notwithstanding Subsection (5)(a) or (b), an office that requests information in
196 accordance with Subsection (3)(q)(iii) or a person that requests information in accordance with
197 Subsection (3)(q)(v):

198 (i) is not guilty of a class A misdemeanor; and
199 (ii) is not subject to:
200 (A) dismissal from office in accordance with Subsection (5)(b); or
201 (B) disqualification from holding public office in accordance with Subsection (5)(b).
202 (6) Except as provided in Section 59-1-404 , this part does not apply to the property tax.
203 Section 2. Effective date.
204 If approved by two-thirds of all the members elected to each house, this bill takes effect
205 upon approval by the governor, or the day following the constitutional time limit of Utah
206 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
207 the date of veto override.