Bill Text: VA SB711 | 2024 | Regular Session | Introduced
Bill Title: Taxation; secrecy of information, taxpayer waiver.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2024-01-31 - Continued to 2025 in Finance and Appropriations (15-Y 0-N) [SB711 Detail]
Download: Virginia-2024-SB711-Introduced.html
Be it enacted by the General Assembly of Virginia:
1. That §58.1-3 of the Code of Virginia is amended and reenacted as follows:
§58.1-3. Secrecy of information; penalties.
A. Except in accordance with a proper judicial order or as otherwise provided by law, the Tax Commissioner or agent, clerk, commissioner of the revenue, treasurer, or any other state or local tax or revenue officer or employee, or any person to whom tax information is divulged pursuant to this section or §58.1-512 or 58.1-2712.2, or any former officer or employee of any of the aforementioned offices shall not divulge any information acquired by him in the performance of his duties with respect to the transactions, property, including personal property, income, or business of any person, firm, or corporation. Such prohibition specifically includes any copy of a federal return or federal return information required by Virginia law to be attached to or included in the Virginia return. This prohibition shall apply to any reports, returns, financial documents, or other information filed with the Attorney General pursuant to the provisions of Article 3 (§3.2-4204 et seq.) of Chapter 42 of Title 3.2. Any person violating the provisions of this section is guilty of a Class 1 misdemeanor. The provisions of this subsection shall not be applicable, however, to:
1. Matters required by law to be entered on any public assessment roll or book;
2. Acts performed or words spoken, published, or shared with another agency or subdivision of the Commonwealth in the line of duty under state law;
3. Inquiries and investigations to obtain information as to the process of real estate assessments by a duly constituted committee of the General Assembly, or when such inquiry or investigation is relevant to its study, provided that any such information obtained shall be privileged;
4. The sales price, date of construction, physical dimensions, or characteristics of real property, or any information required for building permits;
5. Copies of or information contained in an estate's probate tax return, filed with the clerk of the court pursuant to §58.1-1714, when requested by a beneficiary of the estate or an heir at law of the decedent or by the commissioner of accounts making a settlement of accounts filed in such estate;
6. Information regarding nonprofit entities exempt from sales and use tax under §58.1-609.11, when requested by the General Assembly or any duly constituted committee of the General Assembly;
7. Reports or information filed with the Attorney General by a Stamping Agent pursuant to the provisions of Article 3 (§3.2-4204 et seq.) of Chapter 42 of Title 3.2, when such reports or information are provided by the Attorney General to a tobacco products manufacturer who is required to establish a qualified escrow fund pursuant to §3.2-4201 and are limited to the brand families of that manufacturer as listed in the Tobacco Directory established pursuant to §3.2-4206 and are limited to the current or previous two calendar years or in any year in which the Attorney General receives Stamping Agent information that potentially alters the required escrow deposit of the manufacturer. The information shall only be provided in the following manner: the manufacturer may make a written request, on a quarterly or yearly basis or when the manufacturer is notified by the Attorney General of a potential change in the amount of a required escrow deposit, to the Attorney General for a list of the Stamping Agents who reported stamping or selling its products and the amount reported. The Attorney General shall provide the list within 15 days of receipt of the request. If the manufacturer wishes to obtain actual copies of the reports the Stamping Agents filed with the Attorney General, it must first request them from the Stamping Agents pursuant to subsection C of §3.2-4209. If the manufacturer does not receive the reports pursuant to subsection C of §3.2-4209, the manufacturer may make a written request to the Attorney General, including a copy of the prior written request to the Stamping Agent and any response received, for copies of any reports not received. The Attorney General shall provide copies of the reports within 45 days of receipt of the request.
B. 1. Nothing contained in this section shall be construed to
prohibit the publication of statistics so classified as to prevent the
identification of particular reports or returns and the items thereof or the
publication of delinquent lists showing the names of taxpayers who are
currently delinquent, together with any relevant information which that
in the opinion of the Department may assist in the collection of such
delinquent taxes. Notwithstanding any other provision of this section or other
law, the Department, upon request by the General Assembly or any duly
constituted committee of the General Assembly, shall disclose the total
aggregate amount of an income tax deduction or credit taken by all taxpayers,
regardless of (i) how few taxpayers took the deduction or credit or (ii) any
other circumstances. This section shall not be construed to prohibit a local
tax official from disclosing whether a person, firm,
or corporation is licensed to do business in that locality and divulging, upon
written request, the name and address of any person, firm,
or corporation transacting business under a fictitious name. Additionally,
notwithstanding any other provision of law, the commissioner of the revenue is authorized to
provide, upon written request stating the reason for such request, the Tax
Commissioner with information obtained from local tax returns and other
information pertaining to the income, sales,
and property of any person, firm, or
corporation licensed to do business in that locality.
2. This section shall not prohibit the Department from disclosing whether a person, firm, or corporation is registered as a retail sales and use tax dealer pursuant to Chapter 6 (§58.1-600 et seq.) or whether a certificate of registration number relating to such tax is valid. Additionally, notwithstanding any other provision of law, the Department is hereby authorized to make available the names and certificate of registration numbers of dealers who are currently registered for retail sales and use tax.
3. This section shall not prohibit the Department from disclosing information to nongovernmental entities with which the Department has entered into a contract to provide services that assist it in the administration of refund processing or other services related to its administration of taxes.
4. This section shall not prohibit the Department from disclosing information to taxpayers regarding whether the taxpayer's employer or another person or entity required to withhold on behalf of such taxpayer submitted withholding records to the Department for a specific taxable year as required pursuant to subdivision C 1 of §58.1-478.
5. This section shall not prohibit the commissioner of the revenue, treasurer, director of finance, or other similar local official who collects or administers taxes for a county, city, or town from disclosing information to nongovernmental entities with which the locality has entered into a contract to provide services that assist it in the administration of refund processing or other non-audit services related to its administration of taxes. The commissioner of the revenue, treasurer, director of finance, or other similar local official who collects or administers taxes for a county, city, or town shall not disclose information to such entity unless he has obtained a written acknowledgement by such entity that the confidentiality and nondisclosure obligations of and penalties set forth in subsection A apply to such entity and that such entity agrees to abide by such obligations.
C. Notwithstanding the provisions of subsection A or B or any
other provision of this title, the Tax Commissioner is authorized to (i)
divulge tax information to any commissioner of the revenue, director of
finance, or other similar collector of county, city, or town taxes who, for the
performance of his official duties, requests the same in writing setting forth
the reasons for such request; (ii) provide to the Commissioner of the Department of Social
Services, upon entering into a written agreement, the amount of income, filing
status, number and type of dependents, whether a federal earned income tax
credit as authorized in §32 of the Internal Revenue Code and an income tax credit
for low-income taxpayers as authorized in §58.1-339.8 have been claimed, and
Forms W-2 and 1099 to facilitate the administration of public assistance or
social services benefits as defined in §63.2-100 or child support services
pursuant to Chapter 19 (§63.2-1900 et seq.) of Title 63.2, or as may be
necessary to facilitate the administration of outreach and enrollment related
to the federal earned income tax credit authorized in §32 of the Internal
Revenue Code and the income tax credit for low-income taxpayers authorized in §
58.1-339.8; (iii) provide to the chief executive officer of the designated
student loan guarantor for the Commonwealth of Virginia, upon written request,
the names and home addresses of those persons identified by the designated
guarantor as having delinquent loans guaranteed by the designated guarantor;
(iv) provide current address information upon request to state agencies and
institutions for their confidential use in facilitating the collection of
accounts receivable, and to the clerk of a circuit or district court for their
confidential use in facilitating the collection of fines, penalties, and costs
imposed in a proceeding in that court; (v) provide to the Commissioner of the
Virginia Employment Commission, after entering into a written agreement, such
tax information as may be necessary to facilitate the collection of
unemployment taxes and overpaid benefits; (vi) provide to the Virginia
Alcoholic Beverage Control Authority, upon entering into a written agreement,
such tax information as may be necessary to facilitate the collection of state
and local taxes and the administration of the alcoholic beverage control laws;
(vii) provide to the Director of the Virginia Lottery such tax information as
may be necessary to identify those lottery ticket retailers who owe delinquent
taxes; (viii) provide to the Department of the Treasury for its confidential
use such tax information as may be necessary to facilitate the location of
owners and holders of unclaimed property, as defined in §55.1-2500; (ix)
provide to the State Corporation Commission, upon entering into a written
agreement, such tax information as may be necessary to facilitate the
collection of taxes and fees administered by the Commission; (x) provide to the
Executive Director of the Potomac and Rappahannock Transportation Commission
for his confidential use such tax information as may be necessary to facilitate
the collection of the motor vehicle fuel sales tax; (xi) provide to the
Commissioner of the Department
of Agriculture and Consumer Services such tax information as may be necessary
to identify those applicants for registration as a supplier of charitable
gaming supplies who have not filed required returns or who owe delinquent
taxes; (xii) provide to the Department of Housing and Community Development for
its confidential use such tax information as may be necessary to facilitate the
administration of the remaining effective provisions of the Enterprise Zone Act
(§59.1-270 et seq.), and the Enterprise Zone Grant Program (§59.1-538 et
seq.); (xiii) provide current name and address information to private
collectors entering into a written agreement with the Tax Commissioner, for
their confidential use when acting on behalf of the Commonwealth or any of its
political subdivisions; however, the Tax Commissioner is not authorized to
provide such information to a private collector who has used or disseminated in
an unauthorized or prohibited manner any such information previously provided
to such collector; (xiv) provide current name and address information as to the
identity of the wholesale or retail dealer that affixed a tax stamp to a
package of cigarettes to any person who manufactures or sells at retail or
wholesale cigarettes and who may bring an action for injunction or other
equitable relief for violation of Chapter 10.1, Enforcement of Illegal Sale or
Distribution of Cigarettes Act; (xv) provide to the Commissioner of Labor and
Industry, upon entering into a written agreement, such tax information as may
be necessary to facilitate the collection of unpaid wages under §40.1-29;
(xvi) provide to the Director of the Department of Human Resource Management,
upon entering into a written agreement, such tax information as may be
necessary to identify persons receiving workers' compensation indemnity
benefits who have failed to report earnings as required by §65.2-712; (xvii)
provide to any commissioner of the revenue, director of finance, or any other
officer of any county, city, or town performing any or all of the duties of a
commissioner of the revenue and to any dealer registered for the collection of
the Communications Sales and Use Tax, a list of the names, business addresses,
and dates of registration of all dealers registered for such tax; (xviii)
provide to the Executive Director of the Northern Virginia Transportation
Commission for his confidential use such tax information as may be necessary to
facilitate the collection of the motor vehicle fuel sales tax; (xix) provide to
the Commissioner of Agriculture and Consumer Services the name and address of
the taxpayer businesses licensed by the Commonwealth that identify themselves
as subject to regulation by the Board of Agriculture and Consumer Services
pursuant to §3.2-5130; (xx) provide to the developer or the economic
development authority of a tourism project authorized by §58.1-3851.1, upon
entering into a written agreement, tax information facilitating the repayment
of gap financing; (xxi) provide to the Virginia Retirement System and the
Department of Human Resource Management, after entering into a written
agreement, such tax information as may be necessary to facilitate the
enforcement of subdivision C 4 of §9.1-401; (xxii) provide to the Department
of Medical Assistance Services and the Department of Social Services, upon
entering into a written agreement, the name, address, social security number,
email address, dependent information provided pursuant to subdivision B 2 of §
58.1-341.1, number and type of personal exemptions, tax-filing status, adjusted
gross income, and any additional information voluntarily provided by the
taxpayer for disclosure pursuant to subdivisions B 1 and 2 of §58.1-341.1, of
an individual, or spouse in the case of a married taxpayer filing jointly, who
has voluntarily consented to such disclosure for purposes of identifying
persons who would like to newly enroll in medical assistance; (xxiii) provide
to the Commissioner of the Department of Motor Vehicles information sufficient
to verify that an applicant for a driver privilege card or permit under §
46.2-328.3 or an applicant for an identification privilege card under §
46.2-345.3 reported income and deductions from Virginia sources, as defined in
§58.1-302, or was claimed as a dependent, on an individual income tax return
filed with the Commonwealth within the preceding 12 months; and (xxiv) provide
to the Virginia Health Benefit Exchange, upon entering into a written
agreement, for taxable years starting on January 1, 2023, or as soon thereafter
as practicable, as determined by the Department of Taxation and the Virginia
Health Benefit Exchange, the name, address, social security number, email
address, dependent information provided pursuant to subdivision B 2 of §
58.1-341.1, number and type of personal exemptions, tax-filing status, adjusted
gross income, and any additional information voluntarily provided by the
taxpayer for disclosure pursuant to subdivision B 3 of §58.1-341.1, of an
individual, or spouse in the case of a married taxpayer filing jointly, who has
voluntarily consented to such disclosure for purposes of identifying persons
who do not meet the income eligibility requirements for medical assistance and
would like to newly enroll in a qualified health plan. The Tax Commissioner is
further authorized to enter into written agreements with duly constituted tax
officials of other states and of the United States for the inspection of tax
returns, the making of audits, and the exchange of information relating to any
tax administered by the Department of Taxation. Any person to whom tax
information is divulged pursuant to this section shall be subject to the
prohibitions and penalties prescribed herein as though he were a tax official.
D. Notwithstanding the provisions of subsection A or B or any
other provision of this title, the commissioner of the
revenue or other assessing official is authorized to (i) provide, upon written
request stating the reason for such request, the chief executive officer of any
county or city with information furnished to the commissioner of the revenue by the Tax
Commissioner relating to the name and address of any dealer located within the
county or city who paid sales and use tax, for the purpose of verifying the
local sales and use tax revenues payable to the county or city; (ii) provide to
the Department of Professional and Occupational Regulation for its confidential
use the name, address, and amount of gross receipts of any person, firm, or entity subject to a
criminal investigation of an unlawful practice of a profession or occupation
administered by the Department of Professional and Occupational Regulation,
only after the Department of Professional and Occupational Regulation exhausts
all other means of obtaining such information; and (iii) provide to any
representative of a condominium unit owners' association, property owners'
association, or
real estate cooperative association, or to the owner of property governed by
any such association, the names and addresses of parties having a security
interest in real property governed by any such association; however, such
information shall be released only upon written request stating the reason for
such request, which reason shall be limited to proposing or opposing changes to
the governing documents of the association, and any information received by any
person under this subsection shall be used only for the reason stated in the
written request. The treasurer or other local assessing official may require
any person requesting information pursuant to clause (iii) of
this subsection to pay the reasonable cost of providing
such information. Any person to whom tax information is divulged pursuant to
this subsection shall be subject to the prohibitions and penalties prescribed
herein as though he were a tax official.
Notwithstanding the provisions of subsection A or B or any other provisions of this title, the treasurer or other collector of taxes for a county, city, or town is authorized to provide information relating to any motor vehicle, trailer, or semitrailer obtained by such treasurer or collector in the course of performing his duties to the commissioner of the revenue or other assessing official for such jurisdiction for use by such commissioner or other official in performing assessments.
This section shall not be construed to prohibit a local tax official from imprinting or displaying on a motor vehicle local license decal the year, make, and model and any other legal identification information about the particular motor vehicle for which that local license decal is assigned.
E. Notwithstanding any other provisions of law, state agencies
and any other administrative or regulatory unit of state government shall
divulge to the Tax Commissioner or his authorized agent, upon written request,
the name, address, and social security number of a taxpayer,
necessary for the performance of the Tax
Commissioner's official duties regarding the administration and enforcement of
laws within the jurisdiction of the Department of Taxation. The receipt of
information by the Tax Commissioner or his agent that may be deemed taxpayer
information shall not relieve the Tax
Commissioner of the obligations under this section.
F. Additionally, it is unlawful for any person to disseminate, publish, or cause to be published any confidential tax document that he knows or has reason to know is a confidential tax document. A confidential tax document is any correspondence, document, or tax return that is prohibited from being divulged by subsection A, B, C, or D and includes any document containing information on the transactions, property, income, or business of any person, firm, or corporation that is required to be filed with any state official by § 58.1-512. This prohibition shall not apply if such confidential tax document has been divulged or disseminated pursuant to a provision of law authorizing disclosure. Any person violating the provisions of this subsection is guilty of a Class 1 misdemeanor.
G. Notwithstanding any other provisions of law, a taxpayer may waive a portion or all secrecy of information provisions of this section with respect to his own confidential tax documents and information in a written acknowledgement stating such waiver, to whom such documents and information are being disclosed, and the extent to which such documents and information may be utilized by the authorized recipient. An authorized recipient of such documents and information shall not be subject to any penalties of this section if using such documents and information in compliance with the terms and scope of the taxpayer's waiver acknowledgement. The Tax Commissioner shall develop and prescribe forms and instructions for the taxpayer waiver described herein.
