Bill Summary – FastDemocracy

Enrolled Copy                                                                         H.B. 360
                        UNCLAIMED PROPERTY AMENDMENTS
                                       2023 GENERAL SESSION
                                           STATE OF UTAH
                                 Chief Sponsor: Jefferson Moss
                                Senate Sponsor: Stephanie Pitcher
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 LONG TITLE
 General Description:
        This bill modifies the confidentiality provisions applicable to certain information in an
 income tax return.
 Highlighted Provisions:
        This bill:
        < allows the State Tax Commission to provide the unclaimed property administrator
 certain information from income tax returns for the purpose of returning property to
 its owner.
 Money Appropriated in this Bill:
        None
 Other Special Clauses:
        None
 Utah Code Sections Affected:
 AMENDS:
        59-1-403, as last amended by Laws of Utah 2022, Chapter 447
23
 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 59-1-403 is amended to read:
        59-1-403. Confidentiality -- Exceptions -- Penalty -- Application to property tax.
        (1) As used in this section:
        (a) "Distributed tax, fee, or charge" means a tax, fee, or charge:
        (i) the commission administers under:
       H.B. 360                                                                         Enrolled Copy
         (A) this title, other than a tax under Chapter 12, Part 2, Local Sales and Use Tax Act;
         (B) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
         (C) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
         (D) Section 19-6-805;
         (E) Section 63H-1-205; or
         (F) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges;
 and
         (ii) with respect to which the commission distributes the revenue collected from the
 tax, fee, or charge to a qualifying jurisdiction.
         (b) "Qualifying jurisdiction" means:
         (i) a county, city, town, or metro township; or
         (ii) the military installation development authority created in Section 63H-1-201.
         (2) (a) Any of the following may not divulge or make known in any manner any
 information gained by that person from any return filed with the commission:
         (i) a tax commissioner;
         (ii) an agent, clerk, or other officer or employee of the commission; or
         (iii) a representative, agent, clerk, or other officer or employee of any county, city, or
 town.
         (b) An official charged with the custody of a return filed with the commission is not
 required to produce the return or evidence of anything contained in the return in any action or
 proceeding in any court, except:
         (i) in accordance with judicial order;
         (ii) on behalf of the commission in any action or proceeding under:
         (A) this title; or
         (B) other law under which persons are required to file returns with the commission;
         (iii) on behalf of the commission in any action or proceeding to which the commission
 is a party; or
         (iv) on behalf of any party to any action or proceeding under this title if the report or
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       Enrolled Copy                                                                               H.B. 360
 facts shown by the return are directly involved in the action or proceeding.
          (c) Notwithstanding Subsection (2)(b), a court may require the production of, and may
 admit in evidence, any portion of a return or of the facts shown by the return, as are specifically
 pertinent to the action or proceeding.
          (3) This section does not prohibit:
          (a) a person or that person's duly authorized representative from receiving a copy of
 any return or report filed in connection with that person's own tax;
          (b) the publication of statistics as long as the statistics are classified to prevent the
 identification of particular reports or returns; and
          (c) the inspection by the attorney general or other legal representative of the state of the
 report or return of any taxpayer:
          (i) who brings action to set aside or review a tax based on the report or return;
          (ii) against whom an action or proceeding is contemplated or has been instituted under
 this title; or
          (iii) against whom the state has an unsatisfied money judgment.
          (4) (a) Notwithstanding Subsection (2) and for purposes of administration, the
 commission may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative
 Rulemaking Act, provide for a reciprocal exchange of information with:
          (i) the United States Internal Revenue Service; or
          (ii) the revenue service of any other state.
          (b) Notwithstanding Subsection (2) and for all taxes except individual income tax and
 corporate franchise tax, the commission may by rule, made in accordance with Title 63G,
 Chapter 3, Utah Administrative Rulemaking Act, share information gathered from returns and
 other written statements with the federal government, any other state, any of the political
 subdivisions of another state, or any political subdivision of this state, except as limited by
 Sections 59-12-209 and 59-12-210, if the political subdivision, other state, or the federal
 government grant substantially similar privileges to this state.
          (c) Notwithstanding Subsection (2) and for all taxes except individual income tax and
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        H.B. 360                                                                       Enrolled Copy
 corporate franchise tax, the commission may by rule, in accordance with Title 63G, Chapter 3,
 Utah Administrative Rulemaking Act, provide for the issuance of information concerning the
 identity and other information of taxpayers who have failed to file tax returns or to pay any tax
 due.
        (d) Notwithstanding Subsection (2), the commission shall provide to the director of the
 Division of Environmental Response and Remediation, as defined in Section 19-6-402, as
 requested by the director of the Division of Environmental Response and Remediation, any
 records, returns, or other information filed with the commission under Chapter 13, Motor and
 Special Fuel Tax Act, or Section 19-6-410.5 regarding the environmental assurance program
 participation fee.
        (e) Notwithstanding Subsection (2), at the request of any person the commission shall
 provide that person sales and purchase volume data reported to the commission on a report,
 return, or other information filed with the commission under:
        (i) Chapter 13, Part 2, Motor Fuel; or
        (ii) Chapter 13, Part 4, Aviation Fuel.
        (f) Notwithstanding Subsection (2), upon request from a tobacco product manufacturer,
 as defined in Section 59-22-202, the commission shall report to the manufacturer:
        (i) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
 manufacturer and reported to the commission for the previous calendar year under Section
 59-14-407; and
        (ii) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
 manufacturer for which a tax refund was granted during the previous calendar year under
 Section 59-14-401 and reported to the commission under Subsection 59-14-401(1)(a)(v).
        (g) Notwithstanding Subsection (2), the commission shall notify manufacturers,
 distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited
 from selling cigarettes to consumers within the state under Subsection 59-14-210(2).
        (h) Notwithstanding Subsection (2), the commission may:
        (i) provide to the Division of Consumer Protection within the Department of
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        Enrolled Copy                                                                            H.B. 360
 Commerce and the attorney general data:
        (A) reported to the commission under Section 59-14-212; or
        (B) related to a violation under Section 59-14-211; and
        (ii) upon request, provide to any person data reported to the commission under
 Subsections 59-14-212(1)(a) through (c) and Subsection 59-14-212(1)(g).
        (i) Notwithstanding Subsection (2), the commission shall, at the request of a committee
 of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's Office of
 Planning and Budget, provide to the committee or office the total amount of revenues collected
 by the commission under Chapter 24, Radioactive Waste Facility Tax Act, for the time period
 specified by the committee or office.
        (j) Notwithstanding Subsection (2), the commission shall make the directory required
 by Section 59-14-603 available for public inspection.
        (k) Notwithstanding Subsection (2), the commission may share information with
 federal, state, or local agencies as provided in Subsection 59-14-606(3).
        (l) (i) Notwithstanding Subsection (2), the commission shall provide the Office of
 Recovery Services within the Department of Health and Human Services any relevant
 information obtained from a return filed under Chapter 10, Individual Income Tax Act,
 regarding a taxpayer who has become obligated to the Office of Recovery Services.
        (ii) The information described in Subsection (4)(l)(i) may be provided by the Office of
 Recovery Services to any other state's child support collection agency involved in enforcing
 that support obligation.
        (m) (i) Notwithstanding Subsection (2), upon request from the state court
 administrator, the commission shall provide to the state court administrator, the name, address,
 telephone number, county of residence, and social security number on resident returns filed
 under Chapter 10, Individual Income Tax Act.
        (ii) The state court administrator may use the information described in Subsection
 (4)(m)(i) only as a source list for the master jury list described in Section 78B-1-106.
        (n) (i) As used in this Subsection (4)(n):
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        H.B. 360                                                                        Enrolled Copy
        (A) "GO Utah office" means the Governor's Office of Economic Opportunity created in
 Section 63N-1a-301.
        (B) "Income tax information" means information gained by the commission that is
 required to be attached to or included in a return filed with the commission under Chapter 7,
 Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act.
        (C) "Other tax information" means information gained by the commission that is
 required to be attached to or included in a return filed with the commission except for a return
 filed under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual
 Income Tax Act.
        (D) "Tax information" means income tax information or other tax information.
        (ii) (A) Notwithstanding Subsection (2) and except as provided in Subsection
 (4)(n)(ii)(B) or (C), the commission shall at the request of the GO Utah office provide to the
 GO Utah office all income tax information.
        (B) For purposes of a request for income tax information made under Subsection
 (4)(n)(ii)(A), the GO Utah office may not request and the commission may not provide to the
 GO Utah office a person's address, name, social security number, or taxpayer identification
 number.
        (C) In providing income tax information to the GO Utah office, the commission shall
 in all instances protect the privacy of a person as required by Subsection (4)(n)(ii)(B).
        (iii) (A) Notwithstanding Subsection (2) and except as provided in Subsection
 (4)(n)(iii)(B), the commission shall at the request of the GO Utah office provide to the GO
 Utah office other tax information.
        (B) Before providing other tax information to the GO Utah office, the commission
 shall redact or remove any name, address, social security number, or taxpayer identification
 number.
        (iv) The GO Utah office may provide tax information received from the commission in
 accordance with this Subsection (4)(n) only:
        (A) as a fiscal estimate, fiscal note information, or statistical information; and
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        Enrolled Copy                                                                              H.B. 360
           (B) if the tax information is classified to prevent the identification of a particular
 return.
           (v) (A) A person may not request tax information from the GO Utah office under Title
 63G, Chapter 2, Government Records Access and Management Act, or this section, if the GO
 Utah office received the tax information from the commission in accordance with this
 Subsection (4)(n).
           (B) The GO Utah office may not provide to a person that requests tax information in
 accordance with Subsection (4)(n)(v)(A) any tax information other than the tax information the
 GO Utah office provides in accordance with Subsection (4)(n)(iv).
           (o) Notwithstanding Subsection (2), the commission may provide to the governing
 board of the agreement or a taxing official of another state, the District of Columbia, the United
 States, or a territory of the United States:
           (i) the following relating to an agreement sales and use tax:
           (A) information contained in a return filed with the commission;
           (B) information contained in a report filed with the commission;
           (C) a schedule related to Subsection (4)(o)(i)(A) or (B); or
           (D) a document filed with the commission; or
           (ii) a report of an audit or investigation made with respect to an agreement sales and
 use tax.
           (p) Notwithstanding Subsection (2), the commission may provide information
 concerning a taxpayer's state income tax return or state income tax withholding information to
 the Driver License Division if the Driver License Division:
           (i) requests the information; and
           (ii) provides the commission with a signed release form from the taxpayer allowing the
 Driver License Division access to the information.
           (q) Notwithstanding Subsection (2), the commission shall provide to the Utah
 Communications Authority, or a division of the Utah Communications Authority, the
 information requested by the authority under Sections 63H-7a-302, 63H-7a-402, and
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        H.B. 360                                                                       Enrolled Copy
 63H-7a-502.
         (r) Notwithstanding Subsection (2), the commission shall provide to the Utah
 Educational Savings Plan information related to a resident or nonresident individual's
 contribution to a Utah Educational Savings Plan account as designated on the resident or
 nonresident's individual income tax return as provided under Section 59-10-1313.
         (s) Notwithstanding Subsection (2), for the purpose of verifying eligibility under
 Sections 26-18-2.5 and 26-40-105, the commission shall provide an eligibility worker with the
 Department of Health and Human Services or its designee with the adjusted gross income of an
 individual if:
         (i) an eligibility worker with the Department of Health and Human Services or its
 designee requests the information from the commission; and
         (ii) the eligibility worker has complied with the identity verification and consent
 provisions of Sections 26-18-2.5 and 26-40-105.
         (t) Notwithstanding Subsection (2), the commission may provide to a county, as
 determined by the commission, information declared on an individual income tax return in
 accordance with Section 59-10-103.1 that relates to eligibility to claim a residential exemption
 authorized under Section 59-2-103.
         (u) Notwithstanding Subsection (2), the commission shall provide a report regarding
 any access line provider that is over 90 days delinquent in payment to the commission of
 amounts the access line provider owes under Title 69, Chapter 2, Part 4, Prepaid Wireless
 Telecommunications Service Charges, to the board of the Utah Communications Authority
 created in Section 63H-7a-201.
         (v) Notwithstanding Subsection (2), the commission shall provide the Department of
 Environmental Quality a report on the amount of tax paid by a radioactive waste facility for the
 previous calendar year under Section 59-24-103.5.
         (w) Notwithstanding Subsection (2), the commission may, upon request, provide to the
 Department of Workforce Services any information received under Chapter 10, Part 4,
 Withholding of Tax, that is relevant to the duties of the Department of Workforce Services.
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        Enrolled Copy                                                                             H.B. 360
         (x) Notwithstanding Subsection (2), the commission may provide the Public Service
 Commission or the Division of Public Utilities information related to a seller that collects and
 remits to the commission a charge desc