EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0454*
HOUSE BILL 454
Q7 4lr1795
CF SB 679
By: The Speaker (By Request – Office of the Comptroller)
Introduced and read first time: January 22, 2024
Assigned to: Ways and Means
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 1, 2024
CHAPTER ______
AN ACT concerning 1
Disclosure of Tax Information – Tax Compliance Activity and Binding Data Use 2
Agreements 3
FOR the purpose of altering the definition of “tax information” for purposes of provisions of 4
law governing the confidentiality and disclosure of tax information; authorizing, 5
subject to certain limitations, the disclosure of certain tax information to certain 6
persons tax compliance organizations and governmental entities for the purpose of 7
assisting the Comptroller in certain tax compliance activity; requiring the 8
Comptroller, when disclosing tax information in accordance with certain provisions 9
of law, to require the party person or governmental entity to whom the information 10
is to be disclosed to enter into a certain data use agreement; requiring the 11
Comptroller, when disclosing tax information in accordance with certain provisions 12
of law, to supervise the recipient of the tax information in a certain manner; 13
prohibiting an officer, employee, former officer, or former employee of a certain 14
person from disclosing the tax information except under certain circumstances; and 15
generally relating to the disclosure of tax information by the Maryland Comptroller. 16
BY repealing and reenacting, with amendments, 17
Article – Tax – General 18
Section 13–203(c) 13–101, 13–201, 13–203(c), and 13–1018 19
Annotated Code of Maryland 20
(2022 Replacement Volume and 2023 Supplement) 21
BY adding to 22
Article – Tax – General 23 2 HOUSE BILL 454
Section 13–203(f) and (g) and 13–208 1
Annotated Code of Maryland 2
(2022 Replacement Volume and 2023 Supplement) 3
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
That the Laws of Maryland read as follows: 5
Article – Tax – General 6
13–101. 7
(a) In this title the following words have the meanings indicated. 8
(b) (1) “Demand response trip” means the carriage of a passenger who is 9
unable to use regular schedule, fixed termini services. 10
(2) “Demand response trip” includes a trip that is required under the 11
federal Americans with Disabilities Act. 12
(C) “GOVERNMENTAL ENTITY ” MEANS: 13
(1) A GOVERNMENTAL UNIT ; AND 14
(2) AN INSTRUMENTALITY O F: 15
(I) ONE OR MORE STATES ; 16
(II) ONE OR MORE POLITICA L SUBDIVISIONS OF A STATE; OR 17
(III) ONE OR MORE STATES A ND POLITICAL SUBDIVI SIONS OF 18
STATES. 19
[(c)] (D) “Governmental unit” means: 20
(1) this State or a political subdivision, unit, or instrumentality of this 21
State; 22
(2) another state or a political subdivision, unit, or instrumentality of that 23
state; and 24
(3) a unit or instrumentality of a political subdivision of this State or of 25
another state. 26
[(d)] (E) (1) “Tax collector” means the person or governmental unit 27
responsible for collecting a tax. 28
HOUSE BILL 454 3
(2) “Tax collector” includes: 1
(i) the Comptroller; 2
(ii) the Department, with respect to: 3
1. the financial institution franchise tax; and 4
2. the public service company franchise tax; and 5
(iii) the registers of wills, with respect to the inheritance tax. 6
(F) “TAX COMPLIANCE ACTIVI TY” MEANS ANY ACTIVITY T HAT SUPPORTS 7
THE COMPTROLLER IN ADMINI STERING THE LAWS DES CRIBED IN § 2–102 OF THIS 8
ARTICLE. 9
(G) “TAX COMPLIANCE ORGANI ZATION” MEANS AN ORGANIZATIO N: 10
(1) A PURPOSE OF WHICH I S TO ASSIST STATE TAX OFFIC IALS IN 11
ENSURING COMPLIANCE WITH AND ENFORCING S TATE AND FEDERAL TAX LAWS; 12
(2) THE MEMBERSHIP OF WH ICH CONSISTS SOLELY OF: 13
(I) STATES; OR 14
(II) STATE TAX COLLECTORS , COMPTROLLERS , OR DIRECTORS 15
OF REVENUE AND THEIR EMPLOYEES; AND 16
(3) OF WHICH THE STATE IS A MEMBER OR PARTICIPANT. 17
13–201. 18
In this subtitle, “tax information” means: 19
(1) ANY TAX RETURN , INFORMATION RETURN , DECLARATION OF 20
ESTIMATED TAX , EXTENSION OF TIME TO FILE A RETURN , OR CLAIM FOR REFUND 21
UNDER THIS ARTICLE T HAT IS FILED WITH TH E TAX COLLECTOR BY , ON BEHALF OF, 22
OR WITH RESPECT TO A NY PERSON AND ANY AM ENDMENT OR SUPPLEMEN T 23
THERETO, INCLUDING SUPPORTING SCHEDULES, ATTACHMENTS , OR LISTS THAT 24
ARE SUPPLEMENTAL TO OR A PART OF THE RET URN; 25
[(1)] (2) the amount of income or any other particulars disclosed in a tax 26
return required under this article, if the return contains return information, as defined in 27
§ 6103 of the Internal Revenue Code; 28
4 HOUSE BILL 454
[(2)] (3) any RETURN OR return information, as defined in § 6103 of the 1
Internal Revenue Code, required to be attached to or included in a tax return required 2
under this article; or 3
[(3)] (4) any information contained in: 4
(i) an admissions and amusement tax return; 5
(ii) an alcoholic beverage tax return; 6
(iii) a bay restoration fee return; 7
(iv) a boxing and wrestling tax return; 8
(V) A DIGITAL ADVERTISIN G GROSS REVENUES TAX RETURN ; 9
[(v)] (VI) an E–9–1–1 fee return; 10
[(vi)] (VII) a financial institution franchise tax return; 11
[(vii)] (VIII) an inheritance tax return; 12
[(viii)] (IX) a Maryland estate tax return; 13
[(ix)] (X) a motor carrier tax return; 14
[(x)] (XI) a motor fuel tax return; 15
[(xi)] (XII) an other tobacco products tax return; 16
[(xii)] (XIII) a public service company franchise tax return; 17
[(xiii)] (XIV) a sales and use tax return; 18
[(xiv)] (XV) a savings and loan association franchise tax return; 19
[(xv)] (XVI) a tire recycling fee return; 20
[(xvi)] (XVII) a tobacco tax return; or 21
[(xvii)] (XVIII) a transportation services assessment return. 22
13–203. 23
HOUSE BILL 454 5
(c) [Tax] SUBJECT TO SUBSECTION (F) SUBSECTIONS (F) AND (G) OF THIS 1
SECTION, TAX information may be disclosed to: 2
(1) an employee or officer of the State who, by reason of that employment 3
or office, has the right to the tax information; 4
(2) another tax collector; 5
(3) the Maryland Tax Court; 6
(4) a legal representative of the State, to review the tax information about 7
a taxpayer: 8
(i) who applies for review under this title; 9
(ii) who appeals from a determination under this title; or 10
(iii) against whom an action to recover tax or a penalty is pending or 11
will be initiated under this title; 12
(5) any license issuing authority of the State required by State law to verify 13
through the Comptroller that an applicant has paid all undisputed taxes and 14
unemployment insurance contributions payable to the Comptroller or the Secretary of 15
Labor or that the applicant has provided for payment in a manner satisfactory to the unit 16
responsible for collection; 17
(6) a local official as defined in § 13–925 of this title to the extent necessary 18
to administer Subtitle 9, Part V of this title; 19
(7) a federal official as defined in § 13–930 of this title to the extent 20
necessary to administer Subtitle 9, Part VI of this title; 21
(8) the Maryland Department of Health in accordance with the federal 22
Children’s Health Insurance Program Reauthorization Act of 2009; 23
(9) the State Board of Individual Tax Preparers; 24
(10) the Alcohol and Tobacco Commission; 25
(11) the Maryland 9–1–1 Board; 26
(12) a person or governmental entity authorized by the Comptroller in 27
writing to receive tax information for the purpose of identifying, preventing, or responding 28
to fraud, provided that the tax information is: 29
(i) anonymized to the extent possible consistent with the 30
information’s intended use; and 31 6 HOUSE BILL 454
(ii) in addition to any other protections and safeguards under law, 1
subject to any protections and safeguards set forth by the Comptroller in the written 2
authorization; 3
(13) the Maryland Higher Education Commission; 4
(14) a hospital, the Health Services Cost Review Commission, the 5
Department of Human Services, the Maryland Department of Health, and the State 6
Department of Education, to the extent necessary to administer § 19–214.4 of the Health – 7
General Article; [and] 8
(15) subject to subsection (e) of this section, the Maryland Small Business 9
Retirement Savings Board and its authorized contractors for the purpose of administering 10
the Maryland Small Business Retirement Savings Program and Trust as authorized under 11
Title 12 of the Labor and Employment Article; AND 12
(16) A PERSON OR GOVERNME NTAL ENTITY A PERSON , 13
GOVERNMENTAL ENTITY , OR TAX COMPLIANCE OR GANIZATION FOR THE PURPOSE 14
OF ASSISTING THE COMPTROLLER IN TAX CO MPLIANCE ACTIVITY . 15
(F) WHEN EXCEPT AS PROVIDED IN SUBSECTION (G) OF THIS SECTION , 16
BEFORE DISCLOSING CONFIDENT IAL TAX INFORMATION UNDER SUBSECTION (C) OF 17
THIS SECTION, THE COMPTROLLER SHALL MAY, IN ITS SOLE DISCRETI ON, REQUIRE 18
THE PARTY PERSON OR GOVERNMENT AL ENTITY TO WHOM THE INFORMAT ION IS TO 19
BE DISCLOSED TO ENTE R INTO A BINDING , WRITTEN DATA USE AGREEMENT 20
REGARDING THE USE AN D SECURITY OF THE TA X INFORMATION , THE TERMS OF 21
WHICH SHALL BE PRESC RIBED BY THE COMPTROLLER ACCORDING TO THE 22
COMPTROLLER ’S DATA SECURITY POLI CIES AND BE CONSISTE NT WITH STATE AND 23
FEDERAL REQUIREMENTS . 24
(G) (1) BEFORE DISCLOSING TAX INFORM ATION UNDER SUBSECTI ON 25
(C)(9), (12), (14), (15), OR (16) OF THIS SECTION , THE COMPTROLLER SHALL 26
REQUIRE THE PARTY TO WHOM THE TAX INFORMA TION IS TO BE DISCLO SED TO 27
ENTER INTO A BINDING , WRITTEN AGREEMENT RE GARDING THE USE AND SECURITY 28
OF THE TAX INFORMATIO N, THE TERMS OF WHICH S HALL BE: 29
(I) PRESCRIBED BY THE COMPTROLLER ACCORDING TO THE 30
COMPTROLLER ’S DATA SECURITY POLI CIES; 31
(II) CONSISTENT WITH STATE AND FEDERAL REQ UIREMENTS, 32
INCLUDING § 6103(A) OF THE INTERNAL REVENUE CODE; AND 33
HOUSE BILL 454 7
(III) IN COMPLIANCE WITH § 6103(B)(5)(B)(III) OF THE 1
INTERNAL REVENUE CODE, BY SUBSTITUTING “COMPTROLLER ” FOR 2
“SECRETARY”. 3
(2) THE COMPTROLLER SHALL ADE QUATELY SUPERVISE TH E 4
RECIPIENT OF THE TAX INFORMATION UNDER SU BSECTION (C)(9), (12), (14), (15), 5
OR (16) OF THIS SECTION AT A LL TIMES. 6
13–208. 7
AN OFFICER, EMPLOYEE, FORMER OFFICER , OR FORMER EMPLOYEE O F A 8
PERSON, GOVERNMENTAL ENTITY , OR TAX COMPLIANCE OR GANIZATION TO WHICH 9
TAX INFORMATION HAS BEEN DISCLOSED UNDER § 13–203(C)(16) OF THIS SUBTITLE 10
MAY NOT DISCLOSE , IN ANY MANNER , ANY TAX INFORMATION OBTAINED IN 11
ACCORDANCE WITH THE DATA USE AGREEMENT , UNLESS THE DISCLOSUR E IS: 12
(1) AUTHORIZED EXPRESSLY BY A LAW OF THIS STATE OR THE 13
FEDERAL GOVERNMENT ; 14
(2) AUTHORIZED BY THE DA TA USE AGREEMEN T; OR 15
(3) REQUIRED BY A COURT ORDER. 16
13–1018. 17
An officer, employee, former officer, or former employee of the State [or of], a political 18
subdivision of the State, OR A PERSON, GOVERNMENTAL ENTITY , OR TAX COMPLIANCE 19
ORGANIZATION TO WHICH TAX INFORMATION HAS BEEN DISCLOSED IN 20
ACCORDANCE WITH § 13–203 OF THIS TITLE who makes a disclosure in violation of 21
Subtitle 2 of this title is guilty of a misdemeanor and, on conviction, is subject to a fine not 22
exceeding $1,000 or imprisonment not exceeding 6 months or both. 23
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 24
1, 2024. 25