HB2019 - 451R - House Bill Summary

House of Representatives

HB 2019

department of revenue; confidentiality

Sponsors: Representative May

DPA	Committee on Ways and Means
DPA	Committee on Appropriations
DPa	Caucus and COW	This bill as introduced contains *an Appropriation clause.*
X	As Transmitted to the Governor

Establishes a new Refund Offset Program Fund that will be administered by Department of Revenue (DOR). This bill also expands who DOR may disclose confidential information to in addition to the corporate principal officers.

History

In 1998 The IRS Restructuring and Reform act was passed creating the Federal Offset Program. The program is managed by Financial Management Service (FMS), a branch of the U.S. Department of Treasury. This program allows for states and territories to have the opportunity to offset federal tax refunds against state tax debts. A cost benefit analysis of this program was undertaken in Arizona and it yielded an estimated net profit of $3,626,660 for the state. Current law does not provide for the creation of a Refund Offset Program Fund.

The bill also addresses who may receive confidential information for corporations. Current law stipulates that confidential corporate tax information can be disclosed to only “a designee of the taxpayer possessing written authorization” or to any “principal corporate officer”.

Provisions

· Establishes a Refund Offset Program Fund. This fund enables DOR to offset federal tax refunds against state debts and other debts. Monies from the fund are then utilized for administrative costs for the fund and any remaining monies go to the general fund.

· Permits Financial Management Service of the Treasury Department to receive confidential information for the refund offset program.

· Appropriates to DOR $146,250 from the state general fund in FY 2001-2002 and FY 2002-2003 to administer the Refund Offset Program.

· Allows a principal corporate officer to execute written authorization for the receipt of confidential information for a controlled subsidiary.

· Expands who may receive confidential tax information between DOR and corporations. In addition to the corporate principal officer, any authorized person may receive the information; if they are designated by the principal officer on the Corporate Board of Directors (or similar body).

· Allows DOR to disclose aggregate amounts of any tax credit, deduction or tax exemption enacted after January 1, 1994, however if this information would give an advantage to competitors or bidders the information will not be disclosed.

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· 45th Legislature