Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 25 Second Substitute (2017GS)

Sponsor

Rep. McCay, D.

Final action

Governor Signed 3/23/2017

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• addresses what tax information the State Tax Commission can provide to a legislative staff office;
• requires the State Tax Commission and Office of the Legislative Fiscal Analyst to conduct a study and report findings on establishing a methodology for estimating state revenue losses due to sales and use tax exemptions; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Wed, Feb 22, 2017 at 3:53 PM by lucydaynes.
This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Thu, Feb 23, 2017 at 12:54 PM by lucydaynes.
TAX INCENTIVE REVIEW AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Daniel McCay
Senate Sponsor: 
 Curtis S. Bramble
LONG TITLE
Committee Note:
The Revenue and Taxation Interim Committee recommended this bill.
General Description:
This bill amends provisions related to the sharing of tax information between the State
Tax Commission and legislative staff offices and requires a study related to sales and
use tax exemptions.
Highlighted Provisions:
This bill:
▸ addresses what tax information the State Tax Commission can provide to a
legislative staff office;
▸ requires the State Tax Commission and Office of the Legislative Fiscal Analyst to
conduct a study and report findings on establishing a methodology for estimating
state revenue losses due to sales and use tax exemptions; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a repeal date.
Utah Code Sections Affected:
AMENDS:
59-1-403
, as last amended by Laws of Utah 2015, Chapters 411 and 451
Uncodified Material Affected:
ENACTS UNCODIFIED MATERIAL
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-1-403
 is amended to read:
59-1-403.
Confidentiality -- Exceptions -- Penalty -- Application to property tax.
(1) (a) 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) 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
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 63G, Chapter 3, 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 63G,
Chapter 3, 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 the political subdivision, other state, 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 63G, Chapter 3,
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 director of the
Division of Environmental Response and Remediation, as defined in Section 
19-6-402
, as
requested by the director of the Division of Environmental Response and Remediation, 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
(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, the Office of the Legislative Fiscal Analyst, or the Governor's Office of
Management 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 make the directory required
by Section 
59-14-603
 available for public inspection.
(k) Notwithstanding Subsection (1), the commission may share information with
federal, state, or local agencies as provided in Subsection 
59-14-606
(3).
(l) (i) Notwithstanding Subsection (1), the commission shall provide the Office of
Recovery Services within the Department of Human Services any relevant information
obtained from a return filed under Chapter 10, Individual Income Tax Act, regarding a taxpayer
who has become obligated to the Office of Recovery Services.
(ii) The information described in Subsection (3)(l)(i) may be provided by the Office of
Recovery Services to any other state's child support collection agency involved in enforcing
that support obligation.
(m) (i) Notwithstanding Subsection (1), upon request from the state court
administrator, the commission shall provide to the state court administrator, the name, address,
telephone number, county of residence, and Social Security number on resident returns filed
under Chapter 10, Individual Income Tax Act.
(ii) The state court administrator may use the information described in Subsection
(3)(m)(i) only as a source list for the master jury list described in Section 
78B-1-106
.
(n) Notwithstanding Subsection (1), the commission shall at the request of a
committee, commission, or task force of the Legislature provide to the committee, commission,
or task force of the Legislature any information relating to a tax imposed under Chapter 9,
Taxation of Admitted Insurers, relating to the study required by Section 
59-9-101
.
(o) (i) As used in this Subsection (3)(o)[
, "office"
]
:
(A) "Income tax information" means information gained by the commission that is
required to be attached to or included in a return filed with the commission under Chapter 7,
Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act.
(B) "Office"
 means the[
:(A)
] Office of the Legislative Fiscal Analyst[
;
] or [
(B)
] 
the
Office of Legislative Research and General Counsel.
(C) "Other tax information" means information gained by the commission that is
required to be attached to or included in a return filed with the commission except for a return
filed under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual
Income Tax Act.
(D) "Tax information" means income tax information or other tax information.
(ii) 
(A)
 Notwithstanding Subsection (1) and except as provided in Subsection
(3)(o)[
(iii)
]
(ii)(B) or (C)
, the commission shall at the request of an office provide to the office
all 
income tax
 information[
:
]
.
[
(A) gained by the commission; and
]
[
(B) required to be attached to or included in returns filed with the commission.
]
[
(iii) (A) An
] 
(B) For purposes of a request for income tax information made under
Subsection (3)(o)(ii)(A), an
 office may not request and the commission may not provide to an
office a person's[
:
] 
address, name, social security number, or taxpayer identification number.
[
(I) address;
]
[
(II) name;
]
[
(III) Social Security number; or
]
[
(IV) taxpayer identification number.
]
[
(B) The
] 
(C) In providing income tax information to an office, the
 commission shall
in all instances protect the privacy of a person as required by Subsection (3)(o)[
(iii)(A)
]
(ii)(B)
.
(iii) (A) Notwithstanding Subsection (1) and except as provided in Subsection
(3)(o)(iii)(B), the commission shall at the request of an office provide to the office other tax
information.
(B) Before providing other tax information to an office, the commission shall redact or
remove any name, address, social security number, or taxpayer identification number.
(iv) An office may provide 
tax
 information received from the commission in
accordance with this Subsection (3)(o) only:
(A) as[
:
] 
a fiscal estimate, fiscal note information, or statistical information; and
[
(I) a fiscal estimate;
]
[
(II) fiscal note information; or
]
[
(III) statistical information; and
]
(B) if the 
tax
 information is classified to prevent the identification of a particular
return.
(v) (A) A person may not request 
tax
 information from an office under Title 63G,
Chapter 2, Government Records Access and Management Act, or this section, if that office
received the 
tax
 information from the commission in accordance with this Subsection (3)(o).
(B) An office may not provide to a person that requests 
tax
 information in accordance
with Subsection (3)(o)(v)(A) any 
tax
 information other than the 
tax
 information the office
provides in accordance with Subsection (3)(o)(iv).
(p) Notwithstanding Subsection (1), the commission may provide to the governing
board of the agreement or a taxing official of another state, the District of Columbia, the United
States, or a territory of the United States:
(i) the following relating to an agreement sales and use tax:
(A) information contained in a return filed with the commission;
(B) information contained in a report filed with the commission;
(C) a schedule related to Subsection (3)(p)(i)(A) or (B); or
(D) a document filed with the commission; or
(ii) a report of an audit or investigation made with respect to an agreement sales and
use tax.
(q) Notwithstanding Subsection (1), the commission may provide information
concerning a taxpayer's state income tax return or state income tax withholding information to
the Driver License Division if the Driver License Division:
(i) requests the information; and
(ii) provides the commission with a signed release form from the taxpayer allowing the
Driver License Division access to the information.
(r) Notwithstanding Subsection (1), the commission shall provide to the Utah
Communications Authority, or a division of the Utah Communications Authority, the
information requested by the authority under Sections 
63H-7a-302
, 
63H-7a-402
, and
63H-7a-502
.
(s) Notwithstanding Subsection (1), the commission shall provide to the Utah
Educational Savings Plan information related to a resident or nonresident individual's
contribution to a Utah Educational Savings Plan account as designated on the resident or
nonresident's individual income tax return as provided under Section 
59-10-1313
.
(t) Notwithstanding Subsection (1), for the purpose of verifying eligibility under
Sections 
26-18-2.5
 and 
26-40-105
, the commission shall provide an eligibility worker with the
Department of Health or its designee with the adjusted gross income of an individual if:
(i) an eligibility worker with the Department of Health or its designee requests the
information from the commission; and
(ii) the eligibility worker has complied with the identity verification and consent
provisions of Sections 
26-18-2.5
 and 
26-40-105
.
(u) Notwithstanding Subsection (1), the commission may provide to a county, as
determined by the commission, information declared on an individual income tax return in
accordance with Section 
59-10-103.1
 that relates to eligibility to claim a residential exemption
authorized under Section 
59-2-103
.
(4) (a) Each report and return 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.
(c) Notwithstanding Subsection (5)(a) or (b), an office that requests information in
accordance with Subsection (3)(o)(iii) or a person that requests information in accordance with
Subsection (3)(o)(v):
(i) is not guilty of a class A misdemeanor; and
(ii) is not subject to:
(A) dismissal from office in accordance with Subsection (5)(b); or
(B) disqualification from holding public office in accordance with Subsection (5)(b).
(6) Except as provided in Section 
59-1-404
, this part does not apply to the property tax.
Section 2. 
Sales tax exemption study.
(1)
Ŝ→ 
(a)
 ←Ŝ
The Utah State Tax Commission, in consultation with the Office of the
233a 
Legislative
Fiscal Analyst, shall study
Ŝ→ [
,
] 
and
 ←Ŝ
prepare a report
Ŝ→ [
, and make recommendations
] ←Ŝ
234a 
on
Ŝ→ [
providing
] ←Ŝ
state
revenue losses due to sales and use tax exemptions under Section 
59-12-104
.
Ŝ→ [
(2)
] 
(b)
 ←Ŝ
The Utah State Tax Commission and Office of the Legislative Fiscal
236a 
Analyst shall
present the findings of the report
Ŝ→ [
, including recommendations,
] ←Ŝ
to the Revenue and
237a 
Taxation
Interim Committee before November 30, 2017.
238a 
Ŝ→ 
(2) (a) The Office of the Legislative Fiscal Analyst shall study and prepare a report on the
238b 
dynamic fiscal impact of the sales and use tax exemptions under Section 59-12-104.
238c 
 (b) The Office of the Legislative Fiscal Analyst shall present the findings of the report
238d 
to the Revenue and Taxation Interim Committee before November 30, 2017.
 ←Ŝ
Section 3. 
Repeal date.
Uncodified Section 2, Sales tax exemption study, is repealed on November 30, 2017.
Legislative Review Note
Office of Legislative Research and General Counsel