HB 199 — TAX RETURN INFO FOR LFC EVALUATION

HOUSEAN BILLACT 199RELATING 57THTO LEGISLATURETAXATION; - STATEOFNEWMEXICO- FIRST SESSION, 2025 INTRODUCED BY Derrick J.

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FORSECTION THE1. LEGISLATIVE FINANCE COMMITTEE h AN ACT g o RELATING TO TAXATION;

AUTHORIZINGSection THE7-1-4.2 REVEALNMSA OF1978 TAXPAYER(being RETURNLaws t2003, hrChapter g398, eSection i2, kas INFORMATIONamended) TOis STAFFamended OFto THEread: LEGISLATIVE FINANCE COMMITTEE TO h r i s EVALUATE PROGRAMS THAT HAVE A FISCAL IMPACT TO THE STATE OR A h , t, POLITICAL SUBDIVISION OF THE STATE.

e"7-1-4.2. u g e b l e e h n d d i = = o h BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

l ] b ,d i a º e SECTION 1.

Section 7-1-4.2 NMSA 1978 (being Laws 2003, r i = r t e w d m a n o Chapter 398, Section 2, as amended) is amended to read:

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b e d s º o t n = .229312.3AIC March 17, 2025 (7:44pm) s k m e e a n e d r e l u [ A d "7-1-4.2.

the right to have audits, inspections of records and meetings conducted at a reasonable time and place in accordance with the provisions of Section 7-1-11 NMSA HB 199/a Page 1 1978;

the right to have the department conduct its h audits in a timely and expeditious manner and be entitled to u » r the tolling of interest as provided in the Tax Administration t h g e l i Act;

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the right to obtain nontechnical information h , e h that explains the procedures, remedies and rights available t u g e b l e e , gh during audit, protest, appeals and collection proceedings n d d i = = o h pursuant to the Tax Administration Act;

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the right to be provided with an explanation of e r = t e w d m a n o the results of and the basis for audits, assessments or denials dof mrefunds :that identify any amount of tax, interest or penalty due;

b r e t º o t n = .229312.3AIC March 17, 2025 (7:44pm) s k m e - 2 - e a n e d r e l u [ A d of refunds that identify any amount of tax, interest or penalty due;

the right to have the taxpayer's tax information kept confidential unless otherwise STBTCºauthorized specified by law, in accordance with Sections 7-1-8 through [7-1-8.11] 7-1-8.12 NMSA 1978»STBTC STBTCºauthorized by the Tax Administration Act»STBTCAct; ;

the right to abatement of an assessment of taxes determined to have been incorrectly, erroneously or illegally made, as provided in Section 7-1-28 NMSA 19781978, and the right to seek a compromise of an asserted tax liability HB 199/a Page 2 by obtaining a h written determination of liability or nonliability when the u » r secretary in good faith is in doubt of the liability as t h g e l i provided in Section 7-1-20 NMSA 1978;

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upon receipt of a tax assessment, the right to h , e h be informed clearly that if the assessment is not paid, t u g e b l e e , gh secured, protested or otherwise provided for in accordance with n d d i = = o h the provisions of Section 7-1-16 NMSA 1978, the taxpayer will l ] b ,d i a º r be a delinquent taxpayer and, upon notice of delinquency, the eright rto =timely tnotice eof wany dcollection mactions athat nwill orequire rightsale toor timelyseizure notice of anythe collectiontaxpayer's actionsproperty thatin willaccordance dwith mthe :provisions of the Tax Administration Act;

b r e t º o t n = .229312.3AIC March 17, 2025 (7:44pm) s k m e - 3 - e a n e d r e l u [ A d require sale or seizure of the taxpayer's property in accordance with the provisions of the Tax Administration Act;

It is unlawful for any person other than the taxpayer to reveal to any other person the taxpayer's return or return information, except as provided in Sections 7-1-8.1 through [7-1-8.11 ] 7-1-8.12 NMSA 1978.

A return or return information revealed [under ] pursuant to Sections 7-1-8.1 through [7-1-8.11] 7-1-8.12 NMSA h 1978:

gHB o199/a tPage hr3 (1) may only be revealed to a person g e i k specifically authorized to receive the return or return h r i s information and the employees, directors, officers and agents h , t, of such person whose official duties or duties in the course of e u g e b l e e h their employment require the return or return information and n d d i = = o h to an employee of the department;

l ] b ,d i a º e (2) may only be revealed for the authorized r i = r t e w d m a n o purpose and only to the extent necessary to perform that dauthorized mpurpose; :

b e d s º o t n = .229312.3AIC March 17, 2025 (7:44pm) s k m e - 4 - e a n e d r e l u [ A d authorized purpose;

If any provision of Sections 7-1-8.1 through [7-1-8.11 ] 7-1-8.12 NMSA 1978 requires that a return or return information will only be revealed pursuant to a written agreement between a person and the department, the written agreement shall:

h (2) describe the specific purpose for which gHB o199/a tPage hr4 the return or return information is to be used;

g e i k (3) describe the procedures and safeguards the h r i s person has in place to ensure that the requirements of h , t, Subsection B of this section are met;

and e u g e b l e e h (4) provide for reimbursement to the n d d i = = o h department for all costs incurred by the department in l ] b ,d i a º e supplying the returns or return information to, and r i = r t e w d m a n o administering the agreement with, the person.

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b e d s º o t n = .229312.3AIC March 17, 2025 (7:44pm) s k m e - 5 - e a n e d r e l u [ A d D.

[NEW MATERIAL ] INFORMATION THAT MAY BE REVEALED TO STAFF OF THE LEGISLATIVE FINANCE COMMITTEE.-- A.

In cases where access is prohibited by HB 199/a Page 5 federal law, h and upon an additional request by the director, the department g o t hr shall provide the requested return information, redacting any g e i k prohibited information.

In regard to return information filed h r i s pursuant to the Income Tax Act, Corporate Income and Franchise h , t, Tax Act, Withholding Tax ActAct, STBTCº , Oil and Gas Proceeds and e u g e b l e e h Pass-Through Entity Withholding Tax Act»STBTCAct and Uniform n d d i = = o h Division of Income for Tax Purposes Act, the department shall l ] b ,d i a º e only provide aggregated data STBTCºof to»STBTCat STBTCºofleast atthree rtaxpayers, ior =more rif tnecessary eto wmaintain dfederal mstandards afor nconfidential oreturn least»STBTCinformation, threeas taxpayers,determined orby morethe ifdepartment, necessaryand toshall maintainnot dinclude mpersonally :identifiable information.

b e d s º o t n = .229312.3AIC March 17, 2025 (7:44pm) s k m e - 6 - e a n e d r e l u [ A d federal standards for confidential return information, as determined by the department, and shall not include personally identifiable information.

STBTCº The department may require that the staff of the legislative finance committee satisfactorily complete appropriate training on protecting confidential information prior to receiving return information pursuant to this section.»STBTCsection. D.

IfD. the information requested pursuant to h Subsection B of this section is available in an electronic u » r format, the information shall be provided in an editable t h g e l i electronic format available for viewing and editing in software h r i s available to the staff of the legislative finance committee.

hIf ,the einformation hrequested E.pursuant to HB 199/a Page 6 Subsection B of this section is available in an electronic format, the information shall be provided in an editable electronic format available for viewing and editing in software available to the staff of the legislative finance committee.