SENATE BILL REPORT

SB 6450

BYSenator McDonald

Expanding the secrecy clause for tax information and administration.

Senate Committee on Ways & Means

Senate Hearing Date(s):January 22, 1990; January 25, 1990

Majority Report:  Do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bauer, Cantu, Fleming, Gaspard, Hayner, Johnson, Lee, Moore, Newhouse, Niemi, Saling, Smith, Talmadge, Warnke, Williams, Wojahn.

Senate Staff:Terry Wilson (786-7715)

                  February 12, 1990

AS PASSED SENATE, FEBRUARY 10, 1990

BACKGROUND:

Current law authorizes the Department of Revenue to share information concerning taxpayers with many federal, state, and local agencies for official purposes.  On the federal level, the department may only share information with the Internal Revenue Service, the Department of Justice, the Bureau of Alcohol, Tobacco and Firearms, and the Army and Navy Departments.  The department is not authorized to share information with Canadian governments.  As a result, the department is unable to obtain information about motor vehicle, vessel, and aircraft ownership and registration, unregistered business activity, and personal property brought into the state that is subject to the state use tax.

SUMMARY:

The Department of Revenue is authorized to share information concerning taxpayers with the Canadian government and provincial governments of Canada, the United States Customs Service, the United States Coast Guard, and the United States Department of Transportation.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

Senate Committee - Testified: Robert Comenout, Sr., Indian interests (con); Norman Nault, Squaxin Island Tribe (con); Robert E. Kovacevich, Alliance for Indian Business (con); Steve Frisch, Department of Revenue (pro)