BILL REQ. #:  Z-0226.1 

Read first time 02/12/13.   Referred to Committee on Government Operations & Elections.

     AN ACT Relating to exempting tax information from public inspection and copying; reenacting and amending RCW 42.56.230; adding a new section to chapter 82.36 RCW; adding a new section to chapter 82.38 RCW; and adding a new section to chapter 82.42 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 42.56.230 and 2011 c 350 s 2 and 2011 c 173 s 1 are each reenacted and amended to read as follows:
     The following personal information is exempt from public inspection and copying under this chapter:
     (1) Personal information in any files maintained for students in public schools, patients or clients of public institutions or public health agencies, or welfare recipients;
     (2) Personal information((,)) including, but not limited to, addresses, telephone numbers, personal electronic mail addresses, social security numbers, emergency contact and date of birth information for a participant in a public or nonprofit program serving or pertaining to children, adolescents, or students, including but not limited to early learning or child care services, parks and recreation programs, youth development programs, and after-school programs. Emergency contact information may be provided to appropriate authorities and medical personnel for the purpose of treating the individual during an emergency situation;
     (3) Personal information in files maintained for employees, appointees, or elected officials of any public agency to the extent that disclosure would violate their right to privacy;
     (4) Information required of any taxpayer in connection with the assessment or collection of any tax if the disclosure of the information to other persons would: (a) Be prohibited to such persons by RCW 84.08.210, 82.32.330, 84.40.020, 84.40.340, sections 2 through 4 of this act, or any ordinance authorized under RCW 35.102.145; or (b) violate the taxpayer's right to privacy or result in unfair competitive disadvantage to the taxpayer;
     (5) Credit card numbers, debit card numbers, electronic check numbers, card expiration dates, or bank or other financial account numbers, except when disclosure is expressly required by or governed by other law;
     (6) Personal and financial information related to a small loan or any system of authorizing a small loan in RCW 31.45.093; and
     (7)(a) Documents and related materials and scanned images of documents and related materials used to prove identity, age, residential address, social security number, or other personal information required to apply for a driver's license or identicard.
     (b) Information provided under RCW 46.20.111 that indicates that an applicant declined to register with the selective service system.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.36 RCW to read as follows:
     Tax information, tax returns, supporting schedules, and documents accompanying tax returns and supporting schedules are confidential and privileged, and except as authorized by this section, neither the department of licensing nor any other person may disclose any tax information, tax returns, supporting schedules, or documents.
     (2) For the purposes of this section, the following definitions apply:
     (a)(i) "Tax information" means, except as provided otherwise in (a)(ii) of this subsection (2):
     (A) A taxpayer's identity;
     (B) The nature, source, or amount of the taxpayer's payments, tax refund applications and supporting documents, deductions, exemptions, credits, liabilities, tax liability deficiencies, assessments, fuel receipts, or distributions, whether taken from the taxpayer's books and records or any other source;
     (C) Whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing;
     (D) A part of a written tax determination or a background file document relating to a written tax determination;
     (E) Information contained in audit files of licensees; and
     (F) Records received by, recorded by, prepared by, furnished to, or collected by the department of licensing with respect to the determination of the existence, or possible existence, of liability, or the amount thereof, of a person under the laws of this state for a tax, penalty, interest, fine, forfeiture, or other imposition, or offense.
     (ii) Records that do not disclose information related to a specific or identifiable taxpayer do not constitute tax information under this section.
     (b) "Taxpayer identity" means the taxpayer's name, address, telephone number, registration number, or any combination thereof, or any other information disclosing the identity of the taxpayer.
     (c) "Tax return" means a tax or information return or claim for refund required by, or provided for or permitted under, the laws of this state that is filed with the department of licensing by, on behalf of, or with respect to a person, and any amendment or supplement thereto, including supporting schedules, attachments, or lists that are supplemental to, or part of, the return so filed.
     (3) This section does not prohibit the department of licensing from:
     (a) Disclosing tax return or tax information in a civil or criminal judicial proceeding or an administrative proceeding:
     (i) In respect of any tax imposed under the laws of this state if the taxpayer or its officer or other person liable under this chapter is a party in the proceeding;
     (ii) In which the taxpayer about whom such tax return or tax information is sought and another state agency are adverse parties in the proceeding;
     (b) Disclosing, subject to such requirements and conditions as the director prescribes by rules adopted pursuant to chapter 34.05 RCW, tax return or tax information regarding a taxpayer to such taxpayer or to such person or persons as that taxpayer may designate in a request for, or consent to, such disclosure, or to any other person, at the taxpayer's request, to the extent necessary to comply with a request for information or assistance made by the taxpayer to such other person. However, tax return or tax information not received from the taxpayer must not be disclosed if the director determines disclosure would compromise any investigation or litigation by any federal, state, or local government agency in connection with the civil or criminal liability of the taxpayer or another person, or disclosure would identify a confidential informant, or disclosure is contrary to any agreement entered into by the department that provides for the reciprocal exchange of information with other government agencies which agreement requires confidentiality with respect to information unless information is required to be disclosed to the taxpayer by the order of any court;
     (c) Disclosing the name of a taxpayer against whom a lien or warrant under RCW 82.36.110 or 82.36.047 has been either issued or filed and remains outstanding for a period of at least ten working days. The department is not required to disclose any information under this subsection if a taxpayer has entered a deferred payment arrangement with the department for the payment of a lien or warrant that has not been filed and is making payments upon such deficiency that will fully satisfy the indebtedness;
     (d) Publishing statistics classified as to prevent the identification of particular tax returns or reports or items thereof;
     (e) Disclosing tax return or tax information, for official purposes only, to the governor or attorney general, or to any state agency, or to any committee or subcommittee of the legislature dealing with matters of taxation, revenue, trade, commerce, the control of industry or the professions;
     (f) Permitting the department of licensing's records to be audited and examined by the proper state officer, his or her agents and employees;
     (g) Disclosing any tax return or tax information to a peace officer as defined in RCW 9A.04.110 or county prosecuting attorney, for official purposes. The disclosure may be made only in response to a search warrant, subpoena, or other court order, unless the disclosure is for the purpose of criminal tax enforcement. A peace officer or county prosecuting attorney who receives the tax return or tax information may disclose that tax return or tax information only for use in the investigation and a related court proceeding, or in the court proceeding for which the tax return or tax information originally was sought;
     (h) Disclosing any tax return or tax information to the proper officer of the internal revenue service of the United States, the Canadian government or provincial governments of Canada, or to the proper officer of the tax department of any state or city or town or county, for official purposes, but only if the statutes of the United States, Canada or its provincial governments, or of such other state or city or town or county, as the case may be, grants substantially similar privileges to the proper officers of this state;
     (i) Disclosing any tax return or tax information to the United States department of justice, including the bureau of alcohol, tobacco, firearms and explosives, the department of defense, the immigration and customs enforcement, and the customs and border protection agencies of the United States department of homeland security, the United States coast guard, the alcohol and tobacco tax and trade bureau of the United States department of treasury, and the United States department of transportation, or any authorized representative of these federal agencies, for official purposes;
     (j) Disclosing, in a manner that is not associated with other tax information, the taxpayer name, entity type, business address, mailing address, license numbers, and the expiration date and status of such licenses. This subsection may not be construed as giving authority to the department to give, sell, or provide access to any list of taxpayers for any commercial purpose;
     (k) Disclosing tax return or tax information also maintained by another Washington state or local governmental agency as a public record available for inspection and copying under the provisions of chapter 42.56 RCW or is a document maintained by a court of record and is not otherwise prohibited from disclosure;
     (l) Disclosing such tax return or tax information to the court in respect to the department's application for a subpoena;
     (m) Disclosing any tax return or tax information when the disclosure is specifically authorized under any other section of the Revised Code of Washington.
     (4)(a) The department may disclose taxpayer information to a person under investigation or during any court or administrative proceeding against a person under investigation as provided in this subsection (4). The disclosure must be in connection with the department's official duties relating to an audit, collection activity, or a civil or criminal investigation. The disclosure may occur only when the person under investigation and the person in possession of data, materials, or documents are parties to the tax information to be disclosed. The department may disclose tax return or tax information such as invoices, contracts, bills, statements, or checks. However, the department may not disclose general ledgers, sales or cash receipt journals, check registers, accounts receivable/payable ledgers, general journals, financial statements, expert's workpapers, income tax returns, state tax returns, tax return workpapers, or other similar data, materials, or documents.
     (b) Before disclosure of any tax return or tax information under this subsection (4), the department must, through written correspondence, inform the person in possession of the data, materials, or documents to be disclosed. The correspondence must clearly identify the data, materials, or documents to be disclosed. The department may not disclose tax return or tax information under this subsection (4) until the time period allowed in (c) of this subsection has expired or until the court has ruled on any challenge brought under (c) of this subsection.
     (c) The person in possession of the data, materials, or documents to be disclosed by the department has twenty days from the receipt of the written request required under (b) of this subsection to petition the superior court of the county in which the petitioner resides for injunctive relief. The court must limit or deny the request of the department if the court determines that:
     (i) The data, materials, or documents sought for disclosure are cumulative or duplicative, or are obtainable from some other source that is more convenient, less burdensome, or less expensive;
     (ii) The production of the data, materials, or documents sought would be unduly burdensome or expensive, taking into account the needs of the department, the amount in controversy, limitations on the petitioner's resources, and the importance of the issues at stake; or
     (iii) The data, materials, or documents sought for disclosure contain trade secret information that, if disclosed, could harm the petitioner.
     (d) The department must reimburse reasonable expenses for the production of data, materials, or documents incurred by the person in possession of the data, materials, or documents to be disclosed. The department may seek reimbursement for expenses incurred from the person who requested the information.
     (e) Requesting information under (b) of this subsection that may indicate that a taxpayer is under investigation does not constitute a disclosure of tax information under this section.
     (5) Service of a subpoena does not constitute a disclosure of tax return or tax information under this section. Notwithstanding anything else to the contrary in this section, a person served with a subpoena may disclose the existence or content of the subpoena to that person's legal counsel.

NEW SECTION.  Sec. 3   A new section is added to chapter 82.38 RCW to read as follows:
     Tax information, tax returns, supporting schedules, and documents accompanying tax returns and supporting schedules are confidential and privileged, and except as authorized by this section, neither the department of licensing nor any other person may disclose any tax information, tax returns, supporting schedules, or documents.
     (2) For the purposes of this section, the following definitions apply:
     (a)(i) "Tax information" means, except as provided otherwise in (a)(ii) of this subsection (2):
     (A) A taxpayer's identity;
     (B) The nature, source, or amount of the taxpayer's payments, tax refund applications and supporting documents, deductions, exemptions, credits, liabilities, tax liability deficiencies, assessments, fuel receipts, or distributions, whether taken from the taxpayer's books and records or any other source;
     (C) Whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing;
     (D) A part of a written tax determination or a background file document relating to a written tax determination;
     (E) Information contained in audit files of licensees; and
     (F) Records received by, recorded by, prepared by, furnished to, or collected by the department of licensing with respect to the determination of the existence, or possible existence, of liability, or the amount thereof, of a person under the laws of this state for a tax, penalty, interest, fine, forfeiture, or other imposition, or offense.
     (ii) Records that do not disclose information related to a specific or identifiable taxpayer do not constitute tax information under this section.
     (b) "Taxpayer identity" means the taxpayer's name, address, telephone number, registration number, or any combination thereof, or any other information disclosing the identity of the taxpayer.
     (c) "Tax return" means a tax or information return or claim for refund required by, or provided for or permitted under, the laws of this state that is filed with the department of licensing by, on behalf of, or with respect to a person, and any amendment or supplement thereto, including supporting schedules, attachments, or lists that are supplemental to, or part of, the return so filed.
     (3) This section does not prohibit the department of licensing from:
     (a) Disclosing tax return or tax information in a civil or criminal judicial proceeding or an administrative proceeding:
     (i) In respect of any tax imposed under the laws of this state if the taxpayer or its officer or other person liable under this chapter is a party in the proceeding;
     (ii) In which the taxpayer about whom such tax return or tax information is sought and another state agency are adverse parties in the proceeding;
     (b) Disclosing, subject to such requirements and conditions as the director prescribes by rules adopted pursuant to chapter 34.05 RCW, tax return or tax information regarding a taxpayer to such taxpayer or to such person or persons as that taxpayer may designate in a request for, or consent to, such disclosure, or to any other person, at the taxpayer's request, to the extent necessary to comply with a request for information or assistance made by the taxpayer to such other person. However, tax return or tax information not received from the taxpayer must not be disclosed if the director determines disclosure would compromise any investigation or litigation by any federal, state, or local government agency in connection with the civil or criminal liability of the taxpayer or another person, or disclosure would identify a confidential informant, or disclosure is contrary to any agreement entered into by the department that provides for the reciprocal exchange of information with other government agencies which agreement requires confidentiality with respect to information unless information is required to be disclosed to the taxpayer by the order of any court;
     (c) Disclosing the name of a taxpayer against whom a lien or warrant under RCW 82.36.110 or 82.36.047 has been either issued or filed and remains outstanding for a period of at least ten working days. The department is not required to disclose any information under this subsection if a taxpayer has entered a deferred payment arrangement with the department for the payment of a lien or warrant that has not been filed and is making payments upon such deficiency that will fully satisfy the indebtedness;
     (d) Publishing statistics classified as to prevent the identification of particular tax returns or reports or items thereof;
     (e) Disclosing tax return or tax information, for official purposes only, to the governor or attorney general, or to any state agency, or to any committee or subcommittee of the legislature dealing with matters of taxation, revenue, trade, commerce, the control of industry or the professions;
     (f) Permitting the department of licensing's records to be audited and examined by the proper state officer, his or her agents and employees;
     (g) Disclosing any tax return or tax information to a peace officer as defined in RCW 9A.04.110 or county prosecuting attorney, for official purposes. The disclosure may be made only in response to a search warrant, subpoena, or other court order, unless the disclosure is for the purpose of criminal tax enforcement. A peace officer or county prosecuting attorney who receives the tax return or tax information may disclose that tax return or tax information only for use in the investigation and a related court proceeding, or in the court proceeding for which the tax return or tax information originally was sought;
     (h) Disclosing any tax return or tax information to the proper officer of the internal revenue service of the United States, the Canadian government or provincial governments of Canada, or to the proper officer of the tax department of any state or city or town or county, for official purposes, but only if the statutes of the United States, Canada or its provincial governments, or of such other state or city or town or county, as the case may be, grants substantially similar privileges to the proper officers of this state;
     (i) Disclosing any tax return or tax information to the United States department of justice, including the bureau of alcohol, tobacco, firearms and explosives, the department of defense, the immigration and customs enforcement, and the customs and border protection agencies of the United States department of homeland security, the United States coast guard, the alcohol and tobacco tax and trade bureau of the United States department of treasury, and the United States department of transportation, or any authorized representative of these federal agencies, for official purposes;
     (j) Disclosing, in a manner that is not associated with other tax information, the taxpayer name, entity type, business address, mailing address, license numbers, and the expiration date and status of such licenses. This subsection may not be construed as giving authority to the department to give, sell, or provide access to any list of taxpayers for any commercial purpose;
     (k) Disclosing tax return or tax information also maintained by another Washington state or local governmental agency as a public record available for inspection and copying under the provisions of chapter 42.56 RCW or is a document maintained by a court of record and is not otherwise prohibited from disclosure;
     (l) Disclosing such tax return or tax information to the court in respect to the department's application for a subpoena;
     (m) Disclosing any tax return or tax information when the disclosure is specifically authorized under any other section of the Revised Code of Washington.
     (4)(a) The department may disclose taxpayer information to a person under investigation or during any court or administrative proceeding against a person under investigation as provided in this subsection (4). The disclosure must be in connection with the department's official duties relating to an audit, collection activity, or a civil or criminal investigation. The disclosure may occur only when the person under investigation and the person in possession of data, materials, or documents are parties to the tax information to be disclosed. The department may disclose tax return or tax information such as invoices, contracts, bills, statements, or checks. However, the department may not disclose general ledgers, sales or cash receipt journals, check registers, accounts receivable/payable ledgers, general journals, financial statements, expert's workpapers, income tax returns, state tax returns, tax return workpapers, or other similar data, materials, or documents.
     (b) Before disclosure of any tax return or tax information under this subsection (4), the department must, through written correspondence, inform the person in possession of the data, materials, or documents to be disclosed. The correspondence must clearly identify the data, materials, or documents to be disclosed. The department may not disclose tax return or tax information under this subsection (4) until the time period allowed in (c) of this subsection has expired or until the court has ruled on any challenge brought under (c) of this subsection.
     (c) The person in possession of the data, materials, or documents to be disclosed by the department has twenty days from the receipt of the written request required under (b) of this subsection to petition the superior court of the county in which the petitioner resides for injunctive relief. The court must limit or deny the request of the department if the court determines that:
     (i) The data, materials, or documents sought for disclosure are cumulative or duplicative, or are obtainable from some other source that is more convenient, less burdensome, or less expensive;
     (ii) The production of the data, materials, or documents sought would be unduly burdensome or expensive, taking into account the needs of the department, the amount in controversy, limitations on the petitioner's resources, and the importance of the issues at stake; or
     (iii) The data, materials, or documents sought for disclosure contain trade secret information that, if disclosed, could harm the petitioner.
     (d) The department must reimburse reasonable expenses for the production of data, materials, or documents incurred by the person in possession of the data, materials, or documents to be disclosed. The department may seek reimbursement for expenses incurred from the person who requested the information.
     (e) Requesting information under (b) of this subsection that may indicate that a taxpayer is under investigation does not constitute a disclosure of tax information under this section.
     (5) Service of a subpoena does not constitute a disclosure of tax return or tax information under this section. Notwithstanding anything else to the contrary in this section, a person served with a subpoena may disclose the existence or content of the subpoena to that person's legal counsel.

NEW SECTION.  Sec. 4   A new section is added to chapter 82.42 RCW to read as follows:
     Tax information, tax returns, supporting schedules, and documents accompanying tax returns and supporting schedules are confidential and privileged, and except as authorized by this section, neither the department of licensing nor any other person may disclose any tax information, tax returns, supporting schedules, or documents.
     (2) For the purposes of this section, the following definitions apply:
     (a)(i) "Tax information" means, except as provided otherwise in (a)(ii) of this subsection (2):
     (A) A taxpayer's identity;
     (B) The nature, source, or amount of the taxpayer's payments, tax refund applications and supporting documents, deductions, exemptions, credits, liabilities, tax liability deficiencies, assessments, fuel receipts, or distributions, whether taken from the taxpayer's books and records or any other source;
     (C) Whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing;
     (D) A part of a written tax determination or a background file document relating to a written tax determination;
     (E) Information contained in audit files of licensees; and
     (F) Records received by, recorded by, prepared by, furnished to, or collected by the department of licensing with respect to the determination of the existence, or possible existence, of liability, or the amount thereof, of a person under the laws of this state for a tax, penalty, interest, fine, forfeiture, or other imposition, or offense.
     (ii) Records that do not disclose information related to a specific or identifiable taxpayer do not constitute tax information under this section.
     (b) "Taxpayer identity" means the taxpayer's name, address, telephone number, registration number, or any combination thereof, or any other information disclosing the identity of the taxpayer.
     (c) "Tax return" means a tax or information return or claim for refund required by, or provided for or permitted under, the laws of this state that is filed with the department of licensing by, on behalf of, or with respect to a person, and any amendment or supplement thereto, including supporting schedules, attachments, or lists that are supplemental to, or part of, the return so filed.
     (3) This section does not prohibit the department of licensing from:
     (a) Disclosing tax return or tax information in a civil or criminal judicial proceeding or an administrative proceeding:
     (i) In respect of any tax imposed under the laws of this state if the taxpayer or its officer or other person liable under this chapter is a party in the proceeding;
     (ii) In which the taxpayer about whom such tax return or tax information is sought and another state agency are adverse parties in the proceeding;
     (b) Disclosing, subject to such requirements and conditions as the director prescribes by rules adopted pursuant to chapter 34.05 RCW, tax return or tax information regarding a taxpayer to such taxpayer or to such person or persons as that taxpayer may designate in a request for, or consent to, such disclosure, or to any other person, at the taxpayer's request, to the extent necessary to comply with a request for information or assistance made by the taxpayer to such other person. However, tax return or tax information not received from the taxpayer must not be disclosed if the director determines disclosure would compromise any investigation or litigation by any federal, state, or local government agency in connection with the civil or criminal liability of the taxpayer or another person, or disclosure would identify a confidential informant, or disclosure is contrary to any agreement entered into by the department that provides for the reciprocal exchange of information with other government agencies which agreement requires confidentiality with respect to information unless information is required to be disclosed to the taxpayer by the order of any court;
     (c) Disclosing the name of a taxpayer against whom a lien or warrant under RCW 82.36.110 or 82.36.047 has been either issued or filed and remains outstanding for a period of at least ten working days. The department is not required to disclose any information under this subsection if a taxpayer has entered a deferred payment arrangement with the department for the payment of a lien or warrant that has not been filed and is making payments upon such deficiency that will fully satisfy the indebtedness;
     (d) Publishing statistics classified as to prevent the identification of particular tax returns or reports or items thereof;
     (e) Disclosing tax return or tax information, for official purposes only, to the governor or attorney general, or to any state agency, or to any committee or subcommittee of the legislature dealing with matters of taxation, revenue, trade, commerce, the control of industry or the professions;
     (f) Permitting the department of licensing's records to be audited and examined by the proper state officer, his or her agents and employees;
     (g) Disclosing any tax return or tax information to a peace officer as defined in RCW 9A.04.110 or county prosecuting attorney, for official purposes. The disclosure may be made only in response to a search warrant, subpoena, or other court order, unless the disclosure is for the purpose of criminal tax enforcement. A peace officer or county prosecuting attorney who receives the tax return or tax information may disclose that tax return or tax information only for use in the investigation and a related court proceeding, or in the court proceeding for which the tax return or tax information originally was sought;
     (h) Disclosing any tax return or tax information to the proper officer of the internal revenue service of the United States, the Canadian government or provincial governments of Canada, or to the proper officer of the tax department of any state or city or town or county, for official purposes, but only if the statutes of the United States, Canada or its provincial governments, or of such other state or city or town or county, as the case may be, grants substantially similar privileges to the proper officers of this state;
     (i) Disclosing any tax return or tax information to the United States department of justice, including the bureau of alcohol, tobacco, firearms and explosives, the department of defense, the immigration and customs enforcement, and the customs and border protection agencies of the United States department of homeland security, the United States coast guard, the alcohol and tobacco tax and trade bureau of the United States department of treasury, and the United States department of transportation, or any authorized representative of these federal agencies, for official purposes;
     (j) Disclosing, in a manner that is not associated with other tax information, the taxpayer name, entity type, business address, mailing address, license numbers, and the expiration date and status of such licenses. This subsection may not be construed as giving authority to the department to give, sell, or provide access to any list of taxpayers for any commercial purpose;
     (k) Disclosing tax return or tax information also maintained by another Washington state or local governmental agency as a public record available for inspection and copying under the provisions of chapter 42.56 RCW or is a document maintained by a court of record and is not otherwise prohibited from disclosure;
     (l) Disclosing such tax return or tax information to the court in respect to the department's application for a subpoena;
     (m) Disclosing any tax return or tax information when the disclosure is specifically authorized under any other section of the Revised Code of Washington.
     (4)(a) The department may disclose taxpayer information to a person under investigation or during any court or administrative proceeding against a person under investigation as provided in this subsection (4). The disclosure must be in connection with the department's official duties relating to an audit, collection activity, or a civil or criminal investigation. The disclosure may occur only when the person under investigation and the person in possession of data, materials, or documents are parties to the tax information to be disclosed. The department may disclose tax return or tax information such as invoices, contracts, bills, statements, or checks. However, the department may not disclose general ledgers, sales or cash receipt journals, check registers, accounts receivable/payable ledgers, general journals, financial statements, expert's workpapers, income tax returns, state tax returns, tax return workpapers, or other similar data, materials, or documents.
     (b) Before disclosure of any tax return or tax information under this subsection (4), the department must, through written correspondence, inform the person in possession of the data, materials, or documents to be disclosed. The correspondence must clearly identify the data, materials, or documents to be disclosed. The department may not disclose tax return or tax information under this subsection (4) until the time period allowed in (c) of this subsection has expired or until the court has ruled on any challenge brought under (c) of this subsection.
     (c) The person in possession of the data, materials, or documents to be disclosed by the department has twenty days from the receipt of the written request required under (b) of this subsection to petition the superior court of the county in which the petitioner resides for injunctive relief. The court must limit or deny the request of the department if the court determines that:
     (i) The data, materials, or documents sought for disclosure are cumulative or duplicative, or are obtainable from some other source that is more convenient, less burdensome, or less expensive;
     (ii) The production of the data, materials, or documents sought would be unduly burdensome or expensive, taking into account the needs of the department, the amount in controversy, limitations on the petitioner's resources, and the importance of the issues at stake; or
     (iii) The data, materials, or documents sought for disclosure contain trade secret information that, if disclosed, could harm the petitioner.
     (d) The department must reimburse reasonable expenses for the production of data, materials, or documents incurred by the person in possession of the data, materials, or documents to be disclosed. The department may seek reimbursement for expenses incurred from the person who requested the information.
     (e) Requesting information under (b) of this subsection that may indicate that a taxpayer is under investigation does not constitute a disclosure of tax information under this section.
     (5) Service of a subpoena does not constitute a disclosure of tax return or tax information under this section. Notwithstanding anything else to the contrary in this section, a person served with a subpoena may disclose the existence or content of the subpoena to that person's legal counsel.