DAR File No. 28430

Tax Commission, Administration

R861-1A-37

Provisions Relating to Disclosure of Commercial Information Pursuant to Utah Code Ann. Section 59-1-404

NOTICE OF PROPOSED RULE

DAR File No.: 28430
Filed: 12/21/2005, 11:36
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section 59-1-404 allows the Tax Commission to promulgate a rule to provide for the sharing of information gathered from returns with the federal, state, and local governments. The statutes give us discretionary rulemaking authority to promulgate a rule to share information with other political entities and there is a need to share information.

Summary of the rule or change:

The proposed amendment allows the Tax Commission to share information gathered from returns with other government entities if those entities grant substantially similar privileges to this state.

State statutory or constitutional authorization for this rule:

Section 59-1-404

Anticipated cost or savings to:

the state budget:

None--Any costs or savings would have been taken in to account under S.B. 163 (2004). (DAR NOTE: S.B. 163 (2004) is found at UT L 2004 Ch 294, and was effective 03/23/2004.)

local governments:

None--Any costs or savings would have been taken in to account under S.B. 163 (2004).

other persons:

None--Any costs or savings would have been taken in to account under S.B. 163 (2004).

Compliance costs for affected persons:

None--The proposed amendment allows the state to share property tax commercial information with federal, state, and local governments that share property tax commercial information with the state.

Comments by the department head on the fiscal impact the rule may have on businesses:

There will be no fiscal impact on businesses since this amendment applies to governments. Pam Hendrickson, Chairman

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at clee@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

02/14/2006

This rule may become effective on:

02/15/2006

Authorized by:

Pam Hendrickson, Commission Chair

RULE TEXT

R861. Tax Commission, Administration.

R861-1A. Administrative Procedures.

R861-1A-37. Provisions Relating to Disclosure of Commercial Information Pursuant to Utah Code Ann. Section 59-1-404.

[A.](1) The provisions of this rule apply to the disclosure of commercial information under Section 59-1-404. For disclosure of information other than commercial information, see rule R861-1A-12.

[B.](2) For purposes of Section 59-1-404, "assessed value of the property" includes any value proposed for a property.

[C.](3) For purposes of Subsection 59-1-404(2), "disclosure" does not include the issuance by the commission of a decision, order, or private letter ruling containing commercial information to a:

[1.](a) named party of a decision or order;

[2.](b) party requesting a private letter ruling; or

[3.](c) designated representative of a party described in [C.1.](3)(a) or [C.2](3)(b).

[D.](4) For purposes of Subsection 59-1-404(6), "published decision" does not include the issuance by the commission of a decision, order, or private letter ruling containing commercial information to a:

[1.](a) named party of a decision or order;

[2.](b) party requesting a private letter ruling; or

[3.](c) designated representative of a party described in [D.1.](4)(a) or [D.2](4)(b).

[E.](5) Information that may be disclosed under Section 59-1-404(3) includes:

[1.](a) the following information related to the property's tax exempt status:

[a)](i) information provided on the application for property tax exempt status;

[b)](ii) information used in the determination of whether a property tax exemption should be granted or revoked; and

[c)](iii) any other information related to a property's property tax exemption;

[2.](b) the following information related to penalty or interest relating to property taxes that the commission or county legislative body determines should be abated:

[a)](i) the amount of penalty or interest that is abated;

[b)](ii) information provided on an application or request for abatement of penalty or interest;

[c)](iii) information used in the determination of the abatement of penalty or interest; and

[d)](iv) any other information related to the amount of penalty or interest that is abated; and

[3.](c) the following information related to the amount of property tax due on property:

[a)](i) the amount of taxes refunded or deducted as an erroneous or illegal assessment under Section 59-2-1321;

[b)](ii) information provided on an application or request that property has been erroneously or illegally assessed under Section 59-2-1321; and

[c)](iii) any other information related to the amount of taxes refunded or deducted under [3.a)](5)(c)(i).

[F. 1.](6)(a) Except as provided in [F.2.](6)(b), commercial information disclosed during an action or proceeding may not be disclosed outside the action or proceeding by any person conducting or participating in the action or proceeding.

[2.](b) Notwithstanding [F.1.](6)(a), commercial information contained in a decision issued by the commission may be disclosed outside the action or proceeding if all of the parties named in the decision agree in writing to the disclosure.

[G.](7) The commission may disclose commercial information in a published decision as follows.

[1.](a) If the property taxpayer that provided the commercial information does not respond in writing to the commission within 30 days of the decision's issuance, requesting that the commercial information not be published and identifying the specific commercial information the taxpayer wants protected, the commission may publish the entire decision.

[2.](b) If the property taxpayer that provided the commercial information indicates to the commission in writing the specific commercial information that the taxpayer wants protected, the commission may publish a version of the decision that contains commercial information not identified by the taxpayer under [G.1](7)(a).

(8) The commission may share commercial 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, if these political subdivisions, or the federal government grant substantially similar privileges to this state.

KEY: developmentally disabled, grievance procedures, taxation, disclosure requirements

Date of Enactment or Last Substantive Amendment: [October 19, 2004]2006

Notice of Continuation: April 22, 2002

Authorizing, and Implemented or Interpreted Law: 59-1-404

ADDITIONAL INFORMATION

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For questions regarding the content or application of this rule, please contact Cheryl Lee at the above address, by phone at 801-297-3900, by FAX at 801-297-3919, or by Internet E-mail at clee@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.