HOUSE BILL REPORT

 

 

                                    HB 2343

 

 

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

 

Majority Report:  Do pass.  (14)

      Signed by Representatives Wang, Chair; Pruitt, Vice-Chair; Holland, Ranking Republican Member; Horn, Assistant Republican Member; Basich, Fraser, Fuhrman, Grant, Haugen, Phillips, Rust, Silver, H. Sommers and Van Luven.

 

      House Staff:Robin Appleford (786-7093)

 

 

                       AS PASSED HOUSE FEBRUARY 9, 1990

 

BACKGROUND:

 

The secrecy clause in existing tax statutes prohibits the Department of Revenue (DOR) from disclosing information on 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.

 

Revenue:    The bill has a revenue impact.

 

Fiscal Note:      Available.

 

House Committee ‑ Testified For:    Roger Dodd, Assistant Director, Compliance Division, Department of Revenue.

 

House Committee - Testified Against:      No one.

 

House Committee - Testimony For:    This bill will improve DOR's ability to obtain information for enforcement and administration of taxes.

 

House Committee - Testimony Against:      None.