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7 LONG TITLE
8 Committee Note:
9 The Revenue and Taxation Interim Committee recommended this bill.
10 Legislative Vote: 7 voting for 1 voting against 10 absent
11 General Description:
12 This bill addresses the disclosure of tax information by the State Tax Commission.
13 Highlighted Provisions:
14 This bill:
15 ▸ authorizes the State Tax Commission to share certain information with the Division
16 of Finance within the Department of Government Operations to facilitate payments
17 to taxpayers.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 None
22 Utah Code Sections Affected:
23 AMENDS:
24 59-1-403, as last amended by Laws of Utah 2023, Chapters 21, 52, 86, 259, and 329
25
26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 59-1-403 is amended to read:
28 59-1-403. Confidentiality -- Exceptions -- Penalty -- Application to property tax.
29 (1) As used in this section:
30 (a) "Distributed tax, fee, or charge" means a tax, fee, or charge:
31 (i) the commission administers under:
32 (A) this title, other than a tax under Chapter 12, Part 2, Local Sales and Use Tax Act;
33 (B) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
34 (C) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
35 (D) Section 19-6-805;
36 (E) Section 63H-1-205; or
37 (F) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges;
38 and
39 (ii) with respect to which the commission distributes the revenue collected from the
40 tax, fee, or charge to a qualifying jurisdiction.
41 (b) "Qualifying jurisdiction" means:
42 (i) a county, city, town, or metro township;
43 (ii) the military installation development authority created in Section 63H-1-201; or
44 (iii) the Utah Inland Port Authority created in Section 11-58-201.
45 (2) (a) Any of the following may not divulge or make known in any manner any
46 information gained by that person from any return filed with the commission:
47 (i) a tax commissioner;
48 (ii) an agent, clerk, or other officer or employee of the commission; or
49 (iii) a representative, agent, clerk, or other officer or employee of any county, city, or
50 town.
51 (b) An official charged with the custody of a return filed with the commission is not
52 required to produce the return or evidence of anything contained in the return in any action or
53 proceeding in any court, except:
54 (i) in accordance with judicial order;
55 (ii) on behalf of the commission in any action or proceeding under:
56 (A) this title; or
57 (B) other law under which persons are required to file returns with the commission;
58 (iii) on behalf of the commission in any action or proceeding to which the commission
59 is a party; or
60 (iv) on behalf of any party to any action or proceeding under this title if the report or
61 facts shown by the return are directly involved in the action or proceeding.
62 (c) Notwithstanding Subsection (2)(b), a court may require the production of, and may
63 admit in evidence, any portion of a return or of the facts shown by the return, as are specifically
64 pertinent to the action or proceeding.
65 (3) This section does not prohibit:
66 (a) a person or that person's duly authorized representative from receiving a copy of
67 any return or report filed in connection with that person's own tax;
68 (b) the publication of statistics as long as the statistics are classified to prevent the
69 identification of particular reports or returns; and
70 (c) the inspection by the attorney general or other legal representative of the state of the
71 report or return of any taxpayer:
72 (i) who brings action to set aside or review a tax based on the report or return;
73 (ii) against whom an action or proceeding is contemplated or has been instituted under
74 this title; or
75 (iii) against whom the state has an unsatisfied money judgment.
76 (4) (a) Notwithstanding Subsection (2) and for purposes of administration, the
77 commission may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative
78 Rulemaking Act, provide for a reciprocal exchange of information with:
79 (i) the United States Internal Revenue Service; or
80 (ii) the revenue service of any other state.
81 (b) Notwithstanding Subsection (2) and for all taxes except individual income tax and
82 corporate franchise tax, the commission may by rule, made in accordance with Title 63G,
83 Chapter 3, Utah Administrative Rulemaking Act, share information gathered from returns and
84 other written statements with the federal government, any other state, any of the political
85 subdivisions of another state, or any political subdivision of this state, except as limited by
86 Sections 59-12-209 and 59-12-210, if the political subdivision, other state, or the federal
87 government grant substantially similar privileges to this state.
88 (c) Notwithstanding Subsection (2) and for all taxes except individual income tax and
89 corporate franchise tax, the commission may by rule, in accordance with Title 63G, Chapter 3,
90 Utah Administrative Rulemaking Act, provide for the issuance of information concerning the
91 identity and other information of taxpayers who have failed to file tax returns or to pay any tax
92 due.
93 (d) Notwithstanding Subsection (2), the commission shall provide to the director of the
94 Division of Environmental Response and Remediation, as defined in Section 19-6-402, as
95 requested by the director of the Division of Environmental Response and Remediation, any
96 records, returns, or other information filed with the commission under Chapter 13, Motor and
97 Special Fuel Tax Act, or Section 19-6-410.5 regarding the environmental assurance program
98 participation fee.
99 (e) Notwithstanding Subsection (2), at the request of any person the commission shall
100 provide that person sales and purchase volume data reported to the commission on a report,
101 return, or other information filed with the commission under:
102 (i) Chapter 13, Part 2, Motor Fuel; or
103 (ii) Chapter 13, Part 4, Aviation Fuel.
104 (f) Notwithstanding Subsection (2), upon request from a tobacco product manufacturer,
105 as defined in Section 59-22-202, the commission shall report to the manufacturer:
106 (i) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
107 manufacturer and reported to the commission for the previous calendar year under Section
108 59-14-407; and
109 (ii) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
110 manufacturer for which a tax refund was granted during the previous calendar year under
111 Section 59-14-401 and reported to the commission under Subsection 59-14-401(1)(a)(v).
112 (g) Notwithstanding Subsection (2), the commission shall notify manufacturers,
113 distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited
114 from selling cigarettes to consumers within the state under Subsection 59-14-210(2).
115 (h) Notwithstanding Subsection (2), the commission may:
116 (i) provide to the Division of Consumer Protection within the Department of
117 Commerce and the attorney general data:
118 (A) reported to the commission under Section 59-14-212; or
119 (B) related to a violation under Section 59-14-211; and
120 (ii) upon request, provide to any person data reported to the commission under
121 Subsections 59-14-212(1)(a) through (c) and Subsection 59-14-212(1)(g).
122 (i) Notwithstanding Subsection (2), the commission shall, at the request of a committee
123 of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's Office of
124 Planning and Budget, provide to the committee or office the total amount of revenues collected
125 by the commission under Chapter 24, Radioactive Waste Facility Tax Act, for the time period
126 specified by the committee or office.
127 (j) Notwithstanding Subsection (2), the commission shall make the directory required
128 by Section 59-14-603 available for public inspection.
129 (k) Notwithstanding Subsection (2), the commission may share information with
130 federal, state, or local agencies as provided in Subsection 59-14-606(3).
131 (l) (i) Notwithstanding Subsection (2), the commission shall provide the Office of
132 Recovery Services within the Department of Health and Human Services any relevant
133 information obtained from a return filed under Chapter 10, Individual Income Tax Act,
134 regarding a taxpayer who has become obligated to the Office of Recovery Services.
135 (ii) The information described in Subsection (4)(l)(i) may be provided by the Office of
136 Recovery Services to any other state's child support collection agency involved in enforcing
137 that support obligation.
138 (m) (i) Notwithstanding Subsection (2), upon request from the state court
139 administrator, the commission shall provide to the state court administrator, the name, address,
140 telephone number, county of residence, and social security number on resident returns filed
141 under Chapter 10, Individual Income Tax Act.
142 (ii) The state court administrator may use the information described in Subsection
143 (4)(m)(i) only as a source list for the master jury list described in Section 78B-1-106.
144 (n) (i) As used in this Subsection (4)(n):
145 (A) "GO Utah office" means the Governor's Office of Economic Opportunity created in
146 Section 63N-1a-301.
147 (B) "Income tax information" means information gained by the commission that is
148 required to be attached to or included in a return filed with the commission under Chapter 7,
149 Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act.
150 (C) "Other tax information" means information gained by the commission that is
151 required to be attached to or included in a return filed with the commission except for a return
152 filed under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual
153 Income Tax Act.
154 (D) "Tax information" means income tax information or other tax information.
155 (ii) (A) Notwithstanding Subsection (2) and except as provided in Subsection
156 (4)(n)(ii)(B) or (C), the commission shall at the request of the GO Utah office provide to the
157 GO Utah office all income tax information.
158 (B) For purposes of a request for income tax information made under Subsection
159 (4)(n)(ii)(A), the GO Utah office may not request and the commission may not provide to the
160 GO Utah office a person's address, name, social security number, or taxpayer identification
161 number.
162 (C) In providing income tax information to the GO Utah office, the commission shall
163 in all instances protect the privacy of a person as required by Subsection (4)(n)(ii)(B).
164 (iii) (A) Notwithstanding Subsection (2) and except as provided in Subsection
165 (4)(n)(iii)(B), the commission shall at the request of the GO Utah office provide to the GO
166 Utah office other tax information.
167 (B) Before providing other tax information to the GO Utah office, the commission
168 shall redact or remove any name, address, social security number, or taxpayer identification
169 number.
170 (iv) The GO Utah office may provide tax information received from the commission in
171 accordance with this Subsection (4)(n) only:
172 (A) as a fiscal estimate, fiscal note information, or statistical information; and
173 (B) if the tax information is classified to prevent the identification of a particular
174 return.
175 (v) (A) A person may not request tax information from the GO Utah office under Title
176 63G, Chapter 2, Government Records Access and Management Act, or this section, if the GO
177 Utah office received the tax information from the commission in accordance with this
178 Subsection (4)(n).
179 (B) The GO Utah office may not provide to a person that requests tax information in
180 accordance with Subsection (4)(n)(v)(A) any tax information other than the tax information the
181 GO Utah office provides in accordance with Subsection (4)(n)(iv).
182 (o) Notwithstanding Subsection (2), the commission may provide to the governing
183 board of the agreement or a taxing official of another state, the District of Columbia, the United
184 States, or a territory of the United States:
185 (i) the following relating to an agreement sales and use tax:
186 (A) information contained in a return filed with the commission;
187 (B) information contained in a report filed with the commission;
188 (C) a schedule related to Subsection (4)(o)(i)(A) or (B); or
189 (D) a document filed with the commission; or
190 (ii) a report of an audit or investigation made with respect to an agreement sales and
191 use tax.
192 (p) Notwithstanding Subsection (2), the commission may provide information
193 concerning a taxpayer's state income tax return or state income tax withholding information to
194 the Driver License Division if the Driver License Division:
195 (i) requests the information; and
196 (ii) provides the commission with a signed release form from the taxpayer allowing the
197 Driver License Division access to the information.
198 (q) Notwithstanding Subsection (2), the commission shall provide to the Utah
199 Communications Authority, or a division of the Utah Communications Authority, the
200 information requested by the authority under Sections 63H-7a-302, 63H-7a-402, and
201 63H-7a-502.
202 (r) Notwithstanding Subsection (2), the commission shall provide to the Utah
203 Educational Savings Plan information related to a resident or nonresident individual's
204 contribution to a Utah Educational Savings Plan account as designated on the resident or
205 nonresident's individual income tax return as provided under Section 59-10-1313.
206 (s) Notwithstanding Subsection (2), for the purpose of verifying eligibility under
207 Sections 26B-3-106 and 26B-3-903, the commission shall provide an eligibility worker with
208 the Department of Health and Human Services or its designee with the adjusted gross income
209 of an individual if:
210 (i) an eligibility worker with the Department of Health and Human Services or its
211 designee requests the information from the commission; and
212 (ii) the eligibility worker has complied with the identity verification and consent
213 provisions of Sections 26B-3-106 and 26B-3-903.
214 (t) Notwithstanding Subsection (2), the commission may provide to a county, as
215 determined by the commission, information declared on an individual income tax return in
216 accordance with Section 59-10-103.1 that relates to eligibility to claim a residential exemption
217 authorized under Section 59-2-103.
218 (u) Notwithstanding Subsection (2), the commission shall provide a report regarding
219 any access line provider that is over 90 days delinquent in payment to the commission of
220 amounts the access line provider owes under Title 69, Chapter 2, Part 4, Prepaid Wireless
221 Telecommunications Service Charges, to the board of the Utah Communications Authority
222 created in Section 63H-7a-201.
223 (v) Notwithstanding Subsection (2), the commission shall provide the Department of
224 Environmental Quality a report on the amount of tax paid by a radioactive waste facility for the
225 previous calendar year under Section 59-24-103.5.
226 (w) Notwithstanding Subsection (2), the commission may, upon request, provide to the
227 Department of Workforce Services any information received under Chapter 10, Part 4,
228 Withholding of Tax, that is relevant to the duties of the Department of Workforce Services.
229 (x) Notwithstanding Subsection (2), the commission may provide the Public Service
230 Commission or the Division of Public Utilities information related to a seller that collects and
231 remits to the commission a charge described in Subsection 69-2-405(2), including the seller's
232 identity and the number of charges described in Subsection 69-2-405(2) that the seller collects.
233 (y) (i) Notwithstanding Subsection (2), the commission shall provide to each qualifying
234 jurisdiction the collection data necessary to verify the revenue collected by the commission for
235 a distributed tax, fee, or charge collected within the qualifying jurisdiction.
236 (ii) In addition to the information provided under Subsection (4)(y)(i), the commission
237 shall provide a qualifying jurisdiction with copies of returns and other information relating to a
238 distributed tax, fee, or charge collected within the qualifying jurisdiction.
239 (iii) (A) To obtain the information described in Subsection (4)(y)(ii), the chief
240 executive officer or the chief executive officer's designee of the qualifying jurisdiction shall
241 submit a written request to the commission that states the specific information sought and how
242 the qualifying jurisdiction intends to use the information.
243 (B) The information described in Subsection (4)(y)(ii) is available only in official
244 matters of the qualifying jurisdiction.
245 (iv) Information that a qualifying jurisdiction receives in response to a request under
246 this subsection is:
247 (A) classified as a private record under Title 63G, Chapter 2, Government Records
248 Access and Management Act; and
249 (B) subject to the confidentiality requirements of this section.
250 (z) Notwithstanding Subsection (2), the commission shall provide the Alcoholic
251 Beverage Services Commission, upon request, with taxpayer status information related to state
252 tax obligations necessary to comply with the requirements described in Section 32B-1-203.
253 (aa) Notwithstanding Subsection (2), the commission shall inform the Department of
254 Workforce Services, as soon as practicable, whether an individual claimed and is entitled to
255 claim a federal earned income tax credit for the year requested by the Department of Workforce
256 Services if:
257 (i) the Department of Workforce Services requests this information; and
258 (ii) the commission has received the information release described in Section
259 35A-9-604.
260 (bb) (i) As used in this Subsection (4)(bb), "unclaimed property administrator" means
261 the administrator or the administrator's agent, as those terms are defined in Section 67-4a-102.
262 (ii) (A) Notwithstanding Subsection (2), upon request from the unclaimed property
263 administrator and to the extent allowed under federal law, the commission shall provide the
264 unclaimed property administrator the name, address, telephone number, county of residence,
265 and social security number or federal employer identification number on any return filed under
266 Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act.
267 (B) The unclaimed property administrator may use the information described in
268 Subsection [
269 to the property's owner in accordance with Title 67, Chapter 4a, Revised Uniform Unclaimed
270 Property Act.
271 (iii) The unclaimed property administrator is subject to the confidentiality provisions of
272 this section with respect to any information the unclaimed property administrator receives
273 under this Subsection [
274 (cc) Notwithstanding Subsection (2), the commission may provide to the Division of
275 Finance within the Department of Government Operations any information necessary to
276 facilitate a payment from the commission to a taxpayer, including:
277 (i) the name of the taxpayer entitled to the payment or any other person legally
278 authorized to receive the payment;
279 (ii) the taxpayer identification number of the taxpayer entitled to the payment;
280 (iii) the payment identification number and amount of the payment;
281 (iv) the tax year to which the payment applies and date on which the payment is due;
282 (v) a mailing address to which the payment may be directed; and
283 (vi) information regarding an account at a depository institution to which the payment
284 may be directed, including the name of the depository institution, the type of account, the
285 account number, and the routing number for the account.
286 (5) (a) Each report and return shall be preserved for at least three years.
287 (b) After the three-year period provided in Subsection (5)(a) the commission may
288 destroy a report or return.
289 (6) (a) Any individual who violates this section is guilty of a class A misdemeanor.
290 (b) If the individual described in Subsection (6)(a) is an officer or employee of the
291 state, the individual shall be dismissed from office and be disqualified from holding public
292 office in this state for a period of five years thereafter.
293 (c) Notwithstanding Subsection (6)(a) or (b), the GO Utah office, when requesting
294 information in accordance with Subsection (4)(n)(iii), or an individual who requests
295 information in accordance with Subsection (4)(n)(v):
296 (i) is not guilty of a class A misdemeanor; and
297 (ii) is not subject to:
298 (A) dismissal from office in accordance with Subsection (6)(b); or
299 (B) disqualification from holding public office in accordance with Subsection (6)(b).
300 (d) Notwithstanding Subsection (6)(a) or (b), for a disclosure of information to the
301 Office of the Legislative Auditor General in accordance with Title 36, Chapter 12, Legislative
302 Organization, an individual described in Subsection (2):
303 (i) is not guilty of a class A misdemeanor; and
304 (ii) is not subject to:
305 (A) dismissal from office in accordance with Subsection (6)(b); or
306 (B) disqualification from holding public office in accordance with Subsection (6)(b).
307 (7) Except as provided in Section 59-1-404, this part does not apply to the property tax.
308 Section 2. Effective date.
309 This bill takes effect on May 1, 2024.