FINAL BILL REPORT

HB 2343

                                   C 67 L 90

BYRepresentatives Fraser, Holland, Wang, Horn and May; by request of Department of Revenue

Expanding the secrecy clause for tax information and administration.

House Committe on Revenue

Senate Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

The secrecy clause in existing tax statutes prohibits the Department of Revenue (DOR) from disclosing information about taxpayers, except in certain circumstances.  DOR is allowed to share information with state and local agencies and certain federal agencies in order to enforce tax laws.  However, DOR may share information with these entities only if they grant similar privileges to DOR.

DOR is currently prohibited from exchanging taxpayer information with the Canadian government, the U.S. Coast Guard, the U.S. Customs Service, and the U.S. Department of Transportation.  As a result, these agencies are often reluctant to share information with DOR regarding vehicle ownership and registration, unregistered business activity, and personal property brought into the state that should be subject to use tax.

SUMMARY:

The secrecy clause is amended to give the Department of Revenue the authority to exchange information with the Canadian government and its provincial governments, the U.S. Coast Guard, the U.S. Customs Service, and the U.S. Department of Transportation.

VOTES ON FINAL PASSAGE:

      House 93   0

      Senate    45     0

EFFECTIVE:June 7, 1990