SENATE BILL REPORT

HB 2424

BYRepresentatives Ballard, Wang, Holland, Pruitt, Horn, Morris, Silver, Basich, Brumsickle, Rust, Miller, Rasmussen, Wood, Fraser, Bowman, Todd, Wolfe, Leonard, Youngsman, G. Fisher, Forner, Van Luven, Jacobsen, Betrozoff, Beck, Winsley, Fuhrman, Rayburn, Sprenkle, P. King, Heavey, Inslee, Crane, Kirby, Smith, R. Fisher, Rector, Hankins, Doty, Jones, Tate, Dellwo, Ebersole, Zellinsky, May, Brooks, Kremen, R. Meyers, Phillips, Ferguson, K. Wilson, Spanel and McLean

Directing a study to define taxpayer rights and responsibilities.

House Committe on Revenue

Senate Committee on Ways & Means

Senate Hearing Date(s):February 22, 1990; February 23, 1990

Majority Report:  Do pass as amended.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bauer, Bluechel, Cantu, Fleming, Gaspard, Johnson, Lee, Matson, Moore, Newhouse, Owen, Warnke, Williams.

Senate Staff:Terry Wilson (786-7715)

                  February 24, 1990

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 23, 1990

BACKGROUND:

Seven states have recently enacted "Taxpayers' Bill of Rights" legislation.  These measures attempt to specify the duties and obligations of the revenue department in conducting audits and collecting delinquent taxes.  The measures also outline the rights of taxpayers in appealing assessments and seeking tax relief.  Many of these measures are modeled after the federal taxpayers' bill of rights.

In Washington, the tax statutes mention certain rights, such as the right to appeal unfair tax assessments and obtain refunds. However, there is no one statute that clearly outlines specific rights and responsibilities of taxpayers.

SUMMARY:

The Department of Revenue (DOR) is directed to study the rights and responsibilities of taxpayers that are currently enumerated in statute, administrative law, and department practice.  The Speaker of the House of Representatives and the Senate majority leader are to appoint one member from each caucus to serve on a legislative advisory committee to the department.  DOR is to report its recommendations to the Legislature on November 1, 1990.  These recommendations are to provide the basis for a 1991 taxpayers' bill of rights and responsibilities.

DOR is to include in its report discussion of the following items:

      1)The need for a taxpayer ombudsman for the state;

      2)The efficacy of the power to abate tax payments under specified circumstances;

      3)The need for clarification of the tax code to make it more understandable to citizens;

      4)The publications available that explain taxpayer rights and responsibilities;

      5)The legal rights to sue and attendant responsibilities;

      6)Consistency throughout DOR in tax collection methods;

      7)Ways to improve voluntary compliance and uniform enforcement; and

      8)Other issues DOR considers relevant.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

SUMMARY OF PROPOSED SENATE AMENDMENT:

The Senate members are to be appointed to the advisory committee by the President of the Senate instead of the majority leader.

Senate Committee - Testified: Representative Ballard, prime sponsor