WES MOORE, Governor Ch. 728
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Chapter 728
(House Bill 454)
AN ACT concerning
Disclosure of Tax Information – Tax Compliance Activity and Binding Data Use
Agreements
FOR the purpose of altering the definition of “tax information” for purposes of provisions of
law governing the confidentiality and disclosure of tax information; authorizing,
subject to certain limitations, the disclosure of certain tax information to certain
persons tax compliance organizations and governmental entities for the purpose of
assisting the Comptroller in certain tax compliance activity; requiring the
Comptroller, when disclosing tax information in accordance with certain provisions
of law, to require the party person or governmental entity to whom the information
is to be disclosed to enter into a certain data use agreement; requiring the
Comptroller, when disclosing tax information in accordance with certain provisions
of law, to supervise the recipient of the tax information in a certain manner;
prohibiting an officer, employee, former officer, or former employee of a certain
person from disclosing the tax information except under certain circumstances; and
generally relating to the disclosure of tax information by the Maryland Comptroller.
BY repealing and reenacting, with amendments,
Article – Tax – General
Section 13–203(c) 13–101, 13–201, 13–203(c), and 13–1018
Annotated Code of Maryland
(2022 Replacement Volume and 2023 Supplement)
BY adding to
Article – Tax – General
Section 13–203(f) and (g) and 13–208
Annotated Code of Maryland
(2022 Replacement Volume and 2023 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Tax – General
13–101.
(a) In this title the following words have the meanings indicated.
(b) (1) “Demand response trip” means the carriage of a passenger who is
unable to use regular schedule, fixed termini services.
Ch. 728 2024 LAWS OF MARYLAND
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(2) “Demand response trip” includes a trip that is required under the
federal Americans with Disabilities Act.
(C) “GOVERNMENTAL ENTITY ” MEANS:
(1) A GOVERNMENTAL UNIT ; AND
(2) AN INSTRUMENTALITY O F:
(I) ONE OR MORE STATES ;
(II) ONE OR MORE POLITICA L SUBDIVISIONS OF A STATE; OR
(III) ONE OR MORE STATES A ND POLITICAL SUBDIVI SIONS OF
STATES.
[(c)] (D) “Governmental unit” means:
(1) this State or a political subdivision, unit, or instrumentality of this
State;
(2) another state or a political subdivision, unit, or instrumentality of that
state; and
(3) a unit or instrumentality of a political subdivision of this State or of
another state.
[(d)] (E) (1) “Tax collector” means the person or governmental unit
responsible for collecting a tax.
(2) “Tax collector” includes:
(i) the Comptroller;
(ii) the Department, with respect to:
1. the financial institution franchise tax; and
2. the public service company franchise tax; and
(iii) the registers of wills, with respect to the inheritance tax.
(F) “TAX COMPLIANCE ACTIVI TY” MEANS ANY ACTIVITY T HAT SUPPORTS
THE COMPTROLLER IN ADMINI STERING THE LAWS DES CRIBED IN § 2–102 OF THIS
ARTICLE. WES MOORE, Governor Ch. 728
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(G) “TAX COMPLIANCE ORGANI ZATION” MEANS AN ORGANIZATIO N:
(1) A PURPOSE OF WHICH I S TO ASSIST STATE TAX OFFIC IALS IN
ENSURING COMPLIANCE WITH AND ENFORCING S TATE AND FEDERAL TAX LAWS;
(2) THE MEMBERSHIP OF WH ICH CONSISTS SOLELY OF:
(I) STATES; OR
(II) STATE TAX COLLECTORS , COMPTROLLERS , OR DIRECTORS
OF REVENUE AND THEIR EMPLOYEES; AND
(3) OF WHICH THE STATE IS A MEMBER OR PARTICIPANT.
13–201.
In this subtitle, “tax information” means:
(1) ANY TAX RETURN , INFORMATION RETURN , DECLARATION OF
ESTIMATED TAX , EXTENSION OF TIME TO FILE A RETURN , OR CLAIM FOR REFUND
UNDER THIS ARTICLE T HAT IS FILED WITH TH E TAX COLLECTOR BY , ON BEHALF OF,
OR WITH RESPECT TO A NY PERSON AND ANY AM ENDMENT OR SUPPLEMEN T
THERETO, INCLUDING SUPPORTING SCHEDULES, ATTACHMENTS , OR LISTS THAT
ARE SUPPLEMENTAL TO OR A PART OF THE RET URN;
[(1)] (2) the amount of income or any other particulars disclosed in a tax
return required under this article, if the return contains return information, as defined in
§ 6103 of the Internal Revenue Code;
[(2)] (3) any RETURN OR return information, as defined in § 6103 of the
Internal Revenue Code, required to be attached to or included in a tax return required
under this article; or
[(3)] (4) any information contained in:
(i) an admissions and amusement tax return;
(ii) an alcoholic beverage tax return;
(iii) a bay restoration fee return;
(iv) a boxing and wrestling tax return;
(V) A DIGITAL ADVERTISIN G GROSS REVENUES TAX RETURN ; Ch. 728 2024 LAWS OF MARYLAND
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[(v)] (VI) an E–9–1–1 fee return;
[(vi)] (VII) a financial institution franchise tax return;
[(vii)] (VIII) an inheritance tax return;
[(viii)] (IX) a Maryland estate tax return;
[(ix)] (X) a motor carrier tax return;
[(x)] (XI) a motor fuel tax return;
[(xi)] (XII) an other tobacco products tax return;
[(xii)] (XIII) a public service company franchise tax return;
[(xiii)] (XIV) a sales and use tax return;
[(xiv)] (XV) a savings and loan association franchise tax return;
[(xv)] (XVI) a tire recycling fee return;
[(xvi)] (XVII) a tobacco tax return; or
[(xvii)] (XVIII) a transportation services assessment return.
13–203.
(c) [Tax] SUBJECT TO SUBSECTION (F) SUBSECTIONS (F) AND (G) OF THIS
SECTION, TAX information may be disclosed to:
(1) an employee or officer of the State who, by reason of that employment
or office, has the right to the tax information;
(2) another tax collector;
(3) the Maryland Tax Court;
(4) a legal representative of the State, to review the tax information about
a taxpayer:
(i) who applies for review under this title;
(ii) who appeals from a determination under this title; or WES MOORE, Governor Ch. 728
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(iii) against whom an action to recover tax or a penalty is pending or
will be initiated under this title;
(5) any license issuing authority of the State required by State law to verify
through the Comptroller that an applicant has paid all undisputed taxes and
unemployment insurance contributions payable to the Comptroller or the Secretary of
Labor or that the applicant has provided for payment in a manner satisfactory to the unit
responsible for collection;
(6) a local official as defined in § 13–925 of this title to the extent necessary
to administer Subtitle 9, Part V of this title;
(7) a federal official as defined in § 13–930 of this title to the extent
necessary to administer Subtitle 9, Part VI of this title;
(8) the Maryland Department of Health in accordance with the federal
Children’s Health Insurance Program Reauthorization Act of 2009;
(9) the State Board of Individual Tax Preparers;
(10) the Alcohol and Tobacco Commission;
(11) the Maryland 9–1–1 Board;
(12) a person or governmental entity authorized by the Comptroller in
writing to receive tax information for the purpose of identifying, preventing, or responding
to fraud, provided that the tax information is:
(i) anonymized to the extent possible consistent with the
information’s intended use; and
(ii) in addition to any other protections and safeguards under law,
subject to any protections and safeguards set forth by the Comptroller in the written
authorization;
(13) the Maryland Higher Education Commission;
(14) a hospital, the Health Services Cost Review Commission, the
Department of Human Services, the Maryland Department of Health, and the State
Department of Education, to the extent necessary to administer § 19–214.4 of the Health –
General Article; [and]
(15) subject to subsection (e) of this section, the Maryland Small Business
Retirement Savings Board and its authorized contractors for the purpose of administering Ch. 728 2024 LAWS OF MARYLAND
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the Maryland Small Business Retirement Savings Program and Trust as authorized under
Title 12 of the Labor and Employment Article; AND
(16) A PERSON OR GOVERNME NTAL ENTITY A PERSON ,
GOVERNMENTAL ENTITY , OR TAX COMPLIANCE OR GANIZATION FOR THE PURPOSE
OF ASSISTING THE COMPTROLLER IN TAX CO MPLIANCE ACTIVITY .
(F) WHEN EXCEPT AS PROVIDED IN SUBSECTION (G) OF THIS SECTION ,
BEFORE DISCLOSING CONFIDENT IAL TAX INFORMATION UNDER SUBSECTION (C) OF
THIS SECTION, THE COMPTROLLER SHALL MAY, IN ITS SOLE DISCRETI ON, REQUIRE
THE PARTY PERSON OR GOVERNMENT AL ENTITY TO WHOM THE INFORMAT ION IS TO
BE DISCLOSED TO ENTE R INTO A BINDING , WRITTEN DATA USE AGREEMENT
REGARDING THE USE AN D SECURITY OF THE TA X INFORMATION , THE TERMS OF
WHICH SHALL BE PRESC RIBED BY THE COMPTROLLER ACCORDING TO THE
COMPTROLLER ’S DATA SECURITY POL ICIES AND BE CONSIST ENT WITH STATE AND
FEDERAL REQUIREMENTS .
(G) (1) BEFORE DISCLOSING TAX INFORMATION UNDER SU BSECTION
(C)(9), (12), (14), (15), OR (16) OF THIS SECTION , THE COMPTROLLER SHALL
REQUIRE THE PARTY TO WHOM THE TAX INFORMA TION IS TO BE DISCLO SED TO
ENTER INTO A BINDING , WRITTEN AGREEMENT RE GARDING THE USE AND SECURITY
OF THE TAX INFORMATI ON, THE TERMS OF WHICH S HALL BE:
(I) PRESCRIBED BY THE COMPTROLLER ACCORDING TO THE
COMPTROLLER ’S DATA SECURITY POLI CIES;
(II) CONSISTENT WITH STATE AND FEDERAL REQUIREM ENTS,
INCLUDING § 6103(A) OF THE INTERNAL REVENUE CODE; AND
(III) IN COMPLIANCE WITH § 6103(B)(5)(B)(III) OF THE
INTERNAL REVENUE CODE, BY SUBSTITUTING “COMPTROLLER ” FOR
“SECRETARY”.
(2) THE COMPTROLLER SHALL ADE QUATELY SUPERVISE THE
RECIPIENT OF THE TAX INFORMATION UNDER SU BSECTION (C)(9), (12), (14), (15),
OR (16) OF THIS SECTION AT A LL TIMES.
13–208.
AN OFFICER, EMPLOYEE, FORMER OFFICER , OR FORMER EMPLOYEE O F A
PERSON, GOVERNMENTAL ENTITY , OR TAX COMPLIANCE OR GANIZATION TO WHICH
TAX INFORMATION HAS BEEN DISCLOSED UNDER § 13–203(C)(16) OF THIS SUBTITLE WES MOORE, Governor Ch. 728
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MAY NOT DISCLOSE , IN ANY MANNER , ANY TAX INFORMATION OBTAINED IN
ACCORDANCE WITH THE DATA USE AGREEMENT , UNLESS THE DISCLOSUR E IS:
(1) AUTHORIZED EXPRESSLY BY A LAW OF THIS STATE OR THE
FEDERAL GOVERNMENT ;
(2) AUTHORIZED BY THE DA TA USE AGREEMENT ; OR
(3) REQUIRED BY A COURT ORDER.
13–1018.
An officer, employee, former officer, or former employee of the State [or of], a political
subdivision of the State, OR A PERSON, GOVERNMENTAL ENTITY , OR TAX COMPLIANCE
ORGANIZATION TO WHICH TAX INFORMA TION HAS BEEN DISCLO SED IN
ACCORDANCE WITH § 13–203 OF THIS TITLE who makes a disclosure in violation of
Subtitle 2 of this title is guilty of a misdemeanor and, on conviction, is subject to a fine not
exceeding $1,000 or imprisonment not exceeding 6 months or both.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2024.
Approved by the Governor, May 16, 2024.