This bill amends section 77-2711 of the Revised Statutes Cumulative Supplement, 2024, to enhance the auditing capabilities of the Auditor of Public Accounts concerning suspected tax reporting irregularities. It allows the Auditor to access tax returns and related information for auditing purposes, which must be conducted on the premises of the Department of Revenue. Additionally, the bill creates an exception to the confidentiality of tax information for municipalities, enabling them to request information about retailers that have collected local option sales taxes. It also establishes a process for municipalities to certify an individual who can review confidential sales and use tax returns and report any suspected discrepancies to the Auditor, while ensuring that this individual cannot disclose any information obtained during the review, except for reporting irregularities.

Moreover, the bill enforces a privacy policy regarding the collection, use, and maintenance of confidential taxpayer information, with the Attorney General responsible for its enforcement. It maintains that all existing laws and regulations concerning taxpayer information remain in effect and clarifies that the state's authority to conduct audits and prevent the disclosure of confidential taxpayer information is not altered. The bill also allows for the collection and use of anonymous data for governmental purposes. Notably, it includes a provision that repeals the original section 77-2711, indicating a significant update to the legal framework governing taxpayer information, although the specific implications of this repeal are not detailed.

Statutes affected:
Introduced: 77-2711