Maryland 2024 Regular Session

Maryland Senate Bill SB679 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4		[Brackets] indicate matter deleted from existing law.
5		-	Underlining indicates amendments to bill.
6		-	Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7		-	amendment.
8	5		sb0679
9	6
10	7		SENATE BILL 679
11	8		Q7 4lr2991
12	9		CF HB 454
13	10		By: The President (By Request – Office of the Comptroller)
14	11		Introduced and read first time: January 29, 2024
15	12		Assigned to: Budget and Taxation
16		-	Committee Report: Favorable with amendments
17		-	Senate action: Adopted
18		-	Read second time: March 17, 2024
19	13
20		-	~~CHAPTER ______~~
	14	+	A BILL ENTITLED
21	15
22	16		AN ACT concerning 1
23	17
24	18		Disclosure of Tax Information – Tax Compliance Activity and Binding Data Use 2
25	19		Agreements 3
26	20
27		-	FOR the purpose of altering the definition of “tax information” for purposes of provisions of 4
28		-	law governing the confidentiality and disclosure of tax information; authorizing, 5
29		-	subject to certain limitations, the disclosure of certain tax information to certain 6
30		-	persons tax compliance organizations and governmental entities for the purpose of 7
31		-	assisting the Comptroller in certain tax compliance activity; requiring the 8
32		-	Comptroller, when disclosing tax information in accordance with certain provisions 9
33		-	of law, to require the party person or governmental entity to whom the information 10
34		-	is to be disclosed to enter into a certain data use agreement; requiring the 11
35		-	Comptroller, when disclosing tax information in accordance with certain provisions 12
36		-	of law, to supervise the recipient of the tax information in a certain manner; 13
37		-	prohibiting an officer, employee, former officer, or former employee of a certain 14
38		-	person from disclosing the tax information except under certain circumstances; and 15
39		-	generally relating to the disclosure of tax information by the Maryland Comptroller. 16
	21	+	FOR the purpose of authorizing, subject to certain limitations, the disclosure of certain tax 4
	22	+	information to certain persons and governmental entities for the purpose of assisting 5
	23	+	the Comptroller in certain tax compliance activity; requiring the Comptroller, when 6
	24	+	disclosing tax information in accordance with certain provisions of law, to require 7
	25	+	the party to whom the information is to be disclosed to enter into a certain data use 8
	26	+	agreement; prohibiting an officer, employee, former officer, or former employee of a 9
	27	+	certain person from disclosing the tax information except under certain 10
	28	+	circumstances; and generally relating to the disclosure of tax information by the 11
	29	+	Maryland Comptroller. 12
40	30
41		-	BY repealing and reenacting, with amendments, 17
42		-	Article – Tax – General 18
43		-	Section 13–203(c) ~~13–101, 13–201, 13–203(c),~~ and 13–1018 19
44		-	Annotated Code of Maryland 20
45		-	(2022 Replacement Volume and 2023 Supplement) 21
	31	+	BY repealing and reenacting, with amendments, 13
	32	+	Article – Tax – General 14
	33	+	Section 13–203(c) and 13–1018 15
	34	+	Annotated Code of Maryland 16
	35	+	(2022 Replacement Volume and 2023 Supplement) 17
46	36
47		-	BY adding to 22
48		-	Article – Tax – General 23 2 SENATE BILL 679
	37	+	BY adding to 18
	38	+	Article – Tax – General 19
	39	+	Section 13–203(f) and 13–208 20
	40	+	Annotated Code of Maryland 21
	41	+	(2022 Replacement Volume and 2023 Supplement) 22
	42	+
	43	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
	44	+	That the Laws of Maryland read as follows: 24
	45	+
	46	+	Article – Tax – General 25
	47	+
	48	+	13–203. 26 2 SENATE BILL 679
49	49
50	50
51		-	Section 13–203(f) and (g) and 13–208 1
52		-	Annotated Code of Maryland 2
53		-	(2022 Replacement Volume and 2023 Supplement) 3
54	51
55		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
56		-	That the Laws of Maryland read as follows: 5
57		-
58		-	Article – Tax – General 6
59		-
60		-	13–101. 7
61		-
62		-	(a) In this title the following words have the meanings indicated. 8
63		-
64		-	(b) (1) “Demand response trip” means the carriage of a passenger who is 9
65		-	unable to use regular schedule, fixed termini services. 10
66		-
67		-	(2) “Demand response trip” includes a trip that is required under the 11
68		-	federal Americans with Disabilities Act. 12
69		-
70		-	(C) “GOVERNMENTAL ENTITY ” MEANS: 13
71		-
72		-	(1) A GOVERNMENTAL UNIT ; AND 14
73		-
74		-	(2) AN INSTRUMENTALITY O F: 15
75		-
76		-	(I) ONE OR MORE STATES ; 16
77		-
78		-	(II) ONE OR MORE POLITICA L SUBDIVISIONS OF A STATE; OR 17
79		-
80		-	(III) ONE OR MORE STATES A ND POLITICAL SUBDIVI SIONS OF 18
81		-	STATES. 19
82		-
83		-	[(c)] (D) “Governmental unit” means: 20
84		-
85		-	(1) this State or a political subdivision, unit, or instrumentality of this 21
86		-	State; 22
87		-
88		-	(2) another state or a political subdivision, unit, or instrumentality of that 23
89		-	state; and 24
90		-
91		-	(3) a unit or instrumentality of a political subdivision of this State or of 25
92		-	another state. 26
93		-
94		-	[(d)] (E) (1) “Tax collector” means the person or governmental unit 27
95		-	responsible for collecting a tax. 28
96		-	SENATE BILL 679 3
97		-
98		-
99		-	(2) “Tax collector” includes: 1
100		-
101		-	(i) the Comptroller; 2
102		-
103		-	(ii) the Department, with respect to: 3
104		-
105		-	1. the financial institution franchise tax; and 4
106		-
107		-	2. the public service company franchise tax; and 5
108		-
109		-	(iii) the registers of wills, with respect to the inheritance tax. 6
110		-
111		-	(F) “TAX COMPLIANCE ACTIVI TY” MEANS ANY ACTIVITY T HAT SUPPORTS 7
112		-	THE COMPTROLLER IN ADMINI STERING THE LAWS DES CRIBED IN § 2–102 OF THIS 8
113		-	ARTICLE. 9
114		-
115		-	(G) “TAX COMPLIANCE ORGANI ZATION” MEANS AN ORGANIZATIO N: 10
116		-
117		-	(1) A PURPOSE OF WHICH I S TO ASSIST STATE TAX OFFICIALS IN 11
118		-	ENSURING COMPLIANCE WITH AND ENFORCING S TATE AND FEDERAL TAX LAWS; 12
119		-
120		-	(2) THE MEMBERSHIP OF WH ICH CONSISTS SOLELY OF: 13
121		-
122		-	(I) STATES; OR 14
123		-
124		-	(II) STATE TAX COLLECTORS , COMPTROLLERS , OR DIRECTORS 15
125		-	OF REVENUE AND THEIR EMPLOYEES; AND 16
126		-
127		-	(3) OF WHICH THE STATE IS A MEMBER OR PARTICIPANT. 17
128		-
129		-	13–201. 18
130		-
131		-	In this subtitle, “tax information” means: 19
132		-
133		-	(1) ANY TAX RETURN , INFORMATION RETURN , DECLARATION OF 20
134		-	ESTIMATED TAX , EXTENSION OF TIME TO FILE A RETURN , OR CLAIM FOR REFUND 21
135		-	UNDER THIS ARTICLE T HAT IS FILED WITH TH E TAX COLLECTOR BY , ON BEHALF OF, 22
136		-	OR WITH RESPECT TO A NY PERSON AND ANY AM ENDMENT OR SUPPLEMEN T 23
137		-	THERETO, INCLUDING SUPPORTING SCHEDULES, ATTACHMENTS , OR LISTS THAT 24
138		-	ARE SUPPLEMENTAL TO OR A PART OF THE RET URN; 25
139		-
140		-	[(1)] (2) the amount of income or any other particulars disclosed in a tax 26
141		-	return required under this article, if the return contains return information, as defined in 27
142		-	§ 6103 of the Internal Revenue Code; 28
143		-	4 SENATE BILL 679
144		-
145		-
146		-	[(2)] (3) any RETURN OR return information, as defined in § 6103 of the 1
147		-	Internal Revenue Code, required to be attached to or included in a tax return required 2
148		-	under this article; or 3
149		-
150		-	[(3)] (4) any information contained in: 4
151		-
152		-	(i) an admissions and amusement tax return; 5
153		-
154		-	(ii) an alcoholic beverage tax return; 6
155		-
156		-	(iii) a bay restoration fee return; 7
157		-
158		-	(iv) a boxing and wrestling tax return; 8
159		-
160		-	(V) A DIGITAL ADVERTISIN G GROSS REVENUES TAX RETURN ; 9
161		-
162		-	[(v)] (VI) an E–9–1–1 fee return; 10
163		-
164		-	[(vi)] (VII) a financial institution franchise tax return; 11
165		-
166		-	[(vii)] (VIII) an inheritance tax return; 12
167		-
168		-	[(viii)] (IX) a Maryland estate tax return; 13
169		-
170		-	[(ix)] (X) a motor carrier tax return; 14
171		-
172		-	[(x)] (XI) a motor fuel tax return; 15
173		-
174		-	[(xi)] (XII) an other tobacco products tax return; 16
175		-
176		-	[(xii)] (XIII) a public service company franchise tax return; 17
177		-
178		-	[(xiii)] (XIV) a sales and use tax return; 18
179		-
180		-	[(xiv)] (XV) a savings and loan association franchise tax return; 19
181		-
182		-	[(xv)] (XVI) a tire recycling fee return; 20
183		-
184		-	[(xvi)] (XVII) a tobacco tax return; or 21
185		-
186		-	[(xvii)] (XVIII) a transportation services assessment return. 22
187		-
188		-	13–203. 23
189		-	SENATE BILL 679 5
190		-
191		-
192		-	(c) [Tax] SUBJECT TO SUBSECTION (F) SUBSECTIONS (F) AND (G) OF THIS 1
193		-	SECTION, TAX information may be disclosed to: 2
	52	+	(c) [Tax] SUBJECT TO SUBSECTION (F) OF THIS SECTION , TAX information 1
	53	+	may be disclosed to: 2
194	54
195	55		(1) an employee or officer of the State who, by reason of that employment 3
196	56		or office, has the right to the tax information; 4
197	57
198	58		(2) another tax collector; 5
199	59
200	60		(3) the Maryland Tax Court; 6
201	61
202	62		(4) a legal representative of the State, to review the tax information about 7
203	63		a taxpayer: 8
204	64
205	65		(i) who applies for review under this title; 9
206	66
207	67		(ii) who appeals from a determination under this title; or 10
208	68
209	69		(iii) against whom an action to recover tax or a penalty is pending or 11
210	70		will be initiated under this title; 12
211	71
212	72		(5) any license issuing authority of the State required by State law to verify 13
213	73		through the Comptroller that an applicant has paid a ll undisputed taxes and 14
214	74		unemployment insurance contributions payable to the Comptroller or the Secretary of 15
215	75		Labor or that the applicant has provided for payment in a manner satisfactory to the unit 16
216	76		responsible for collection; 17
217	77
218	78		(6) a local official as defined in § 13–925 of this title to the extent necessary 18
219	79		to administer Subtitle 9, Part V of this title; 19
220	80
221	81		(7) a federal official as defined in § 13–930 of this title to the extent 20
222	82		necessary to administer Subtitle 9, Part VI of this title; 21
223	83
224	84		(8) the Maryland Department of Health in accordance with the federal 22
225	85		Children’s Health Insurance Program Reauthorization Act of 2009; 23
226	86
227	87		(9) the State Board of Individual Tax Preparers; 24
228	88
229	89		(10) the Alcohol and Tobacco Commission; 25
230	90
231	91		(11) the Maryland 9–1–1 Board; 26
232	92
233	93		(12) a person or governmental entity authorized by the Comptroller in 27
234	94		writing to receive tax information for the purpose of identifying, preventing, or responding 28
235	95		to fraud, provided that the tax information is: 29
	96	+	SENATE BILL 679 3
236	97
237		-	(i) anonymized to the extent possible consistent with the 30
238		-	information’s intended use; and 31 6 SENATE BILL 679
	98	+
	99	+	(i) anonymized to the extent possible consis tent with the 1
	100	+	information’s intended use; and 2
	101	+
	102	+	(ii) in addition to any other protections and safeguards under law, 3
	103	+	subject to any protections and safeguards set forth by the Comptroller in the written 4
	104	+	authorization; 5
	105	+
	106	+	(13) the Maryland Higher Education Commission; 6
	107	+
	108	+	(14) a hospital, the Health Services Cost Review Commission, the 7
	109	+	Department of Human Services, the Maryland Department of Health, and the State 8
	110	+	Department of Education, to the extent necessary to administer § 19–214.4 of the Health – 9
	111	+	General Article; [and] 10
	112	+
	113	+	(15) subject to subsection (e) of this section, the Maryland Small Business 11
	114	+	Retirement Savings Board and its authorized contractors for the purpose of administering 12
	115	+	the Maryland Small Business Retirement Savings Program and Trust as authorized under 13
	116	+	Title 12 of the Labor and Employment Article; AND 14
	117	+
	118	+	(16) A PERSON OR GOVERNME NTAL ENTITY FOR THE PURPOSE OF 15
	119	+	ASSISTING THE COMPTROLLER IN TAX CO MPLIANCE ACTIVITY . 16
	120	+
	121	+	(F) WHEN DISCLOSING CONFI DENTIAL TAX INFORMAT ION UNDER 17
	122	+	SUBSECTION (C) OF THIS SECTION, THE COMPTROLLER SHALL REQ UIRE THE PARTY 18
	123	+	TO WHOM THE INFORMAT ION IS TO BE DISCLOS ED TO ENTER INTO A B INDING, 19
	124	+	WRITTEN DATA USE AGR EEMENT, THE TERMS OF WHICH S HALL BE PRESCRIBED B Y 20
	125	+	THE COMPTROLLER ACCORDING TO THE COMPTROLLER ’S DATA SECURITY 21
	126	+	POLICIES AND BE CONSISTENT WITH STATE AND FEDERAL REQ UIREMENTS. 22
	127	+
	128	+	13–208. 23
	129	+
	130	+	AN OFFICER, EMPLOYEE, FORMER OFFICER , OR FORMER EMPLOYEE O F A 24
	131	+	PERSON TO WHICH TAX INFORMATION HAS BEEN DISCLOSED UNDER § 25
	132	+	13–203(C)(16) OF THIS SUBTITLE MAY NOT DISCLOSE , IN ANY MANNER , ANY TAX 26
	133	+	INFORMATION OBTAINED IN ACCORDANCE WITH T HE DATA USE AGREEMEN T, 27
	134	+	UNLESS THE DISCLOSUR E IS: 28
	135	+
	136	+	(1) AUTHORIZED EXPRESSLY BY A LAW OF THIS STATE OR THE 29
	137	+	FEDERAL GOVERNMENT ; 30
	138	+
	139	+	(2) AUTHORIZED BY THE DA TA USE AGREEMENT ; OR 31
	140	+
	141	+	(3) REQUIRED BY A COURT ORDER. 32
	142	+
	143	+	13–1018. 33 4 SENATE BILL 679
239	144
240	145
241	146
242		-	(ii) in addition to any other protections and safeguards under law, 1
243		-	subject to any protections and safeguards set forth by the Comptroller in the written 2
244		-	authorization; 3
	147	+	An officer, employee, former officer, or former employee of the State [or of], a political 1
	148	+	subdivision of the State, OR A PERSON TO WHICH TAX INFORMATION HAS BEEN 2
	149	+	DISCLOSED IN ACCORDA NCE WITH § 13–203 OF THIS TITLE who makes a disclosure in 3
	150	+	violation of Subtitle 2 of this title is guilty of a misdemeanor and, on conviction, is subject 4
	151	+	to a fine not exceeding $1,000 or imprisonment not exceeding 6 months or both. 5
245	152
246		-	(13) the Maryland Higher Education Commission; 4
247		-
248		-	(14) a hospital, the Health Services Cost Review C ommission, the 5
249		-	Department of Human Services, the Maryland Department of Health, and the State 6
250		-	Department of Education, to the extent necessary to administer § 19–214.4 of the Health – 7
251		-	General Article; [and] 8
252		-
253		-	(15) subject to subsection (e) of this section, the Maryland Small Business 9
254		-	Retirement Savings Board and its authorized contractors for the purpose of administering 10
255		-	the Maryland Small Business Retirement Savings Program and Trust as authorized under 11
256		-	Title 12 of the Labor and Employment Article; AND 12
257		-
258		-	(16) A PERSON OR GOVERNME NTAL ENTITY A PERSON , 13
259		-	GOVERNMENTAL ENTITY , OR TAX COMPLIANCE OR GANIZATION FOR THE PURPOSE 14
260		-	OF ASSISTING THE COMPTROLLER IN TAX CO MPLIANCE ACTIVITY . 15
261		-
262		-	(F) WHEN EXCEPT AS PROVIDED IN SUBSECTION (G) OF THIS SECTION , 16
263		-	BEFORE DISCLOSING CONFIDENT IAL TAX INFORMATION UNDER SUBSECTION (C) OF 17
264		-	THIS SECTION, THE COMPTROLLER SHALL MAY, IN ITS SOLE DISCRETI ON, REQUIRE 18
265		-	THE PARTY PERSON OR GOVERNMENT AL ENTITY TO WHOM THE INFORMAT ION IS TO 19
266		-	BE DISCLOSED TO ENTE R INTO A BINDING , WRITTEN DATA USE AGREEMENT 20
267		-	REGARDING THE USE AN D SECURITY OF THE TA X INFORMATION , THE TERMS OF 21
268		-	WHICH SHALL BE PRESC RIBED BY THE COMPTROLLER ACCORDING TO THE 22
269		-	COMPTROLLER ’S DATA SECURITY POLI CIES AND BE CONSISTE NT WITH STATE AND 23
270		-	FEDERAL REQUIREMENTS . 24
271		-
272		-	(G) (1) BEFORE DISCLOSING TAX INFORM ATION UNDER SUBSECTI ON 25
273		-	(C)(9), (12), (14), (15), OR (16) OF THIS SECTION , THE COMPTROLLER SHALL 26
274		-	REQUIRE THE PARTY TO WHOM THE TAX INFORMA TION IS TO BE DISCLO SED TO 27
275		-	ENTER INTO A BINDING , WRITTEN AGREEMENT RE GARDING THE USE AND SECURITY 28
276		-	OF THE TAX INFORMATIO N, THE TERMS OF WHICH S HALL BE: 29
277		-
278		-	(I) PRESCRIBED BY THE COMPTROLLER ACCORDING TO THE 30
279		-	COMPTROLLER ’S DATA SECURITY POLI CIES; 31
280		-
281		-	(II) CONSISTENT WITH STATE AND FEDERAL REQ UIREMENTS, 32
282		-	INCLUDING § 6103(A) OF THE INTERNAL REVENUE CODE; AND 33
283		-	SENATE BILL 679 7
284		-
285		-
286		-	(III) IN COMPLIANCE WITH § 6103(B)(5)(B)(III) OF THE 1
287		-	INTERNAL REVENUE CODE, BY SUBSTITUTING “COMPTROLLER ” FOR 2
288		-	“SECRETARY”. 3
289		-
290		-	(2) THE COMPTROLLER SHALL ADE QUATELY SUPERVISE TH E 4
291		-	RECIPIENT OF THE TAX INFORMATION UNDER SU BSECTION (C)(9), (12), (14), (15), 5
292		-	OR (16) OF THIS SECTION AT A LL TIMES. 6
293		-
294		-	13–208. 7
295		-
296		-	AN OFFICER, EMPLOYEE, FORMER OFFICER , OR FORMER EMPLOYEE O F A 8
297		-	PERSON, GOVERNMENTAL ENTITY , OR TAX COMPLIANCE OR GANIZATION TO WHICH 9
298		-	TAX INFORMATION HAS BEEN DISCLOSED UNDER § 13–203(C)(16) OF THIS SUBTITLE 10
299		-	MAY NOT DISCLOSE , IN ANY MANNER , ANY TAX INFORMATION OBTAINED IN 11
300		-	ACCORDANCE WITH THE DATA USE AGREEMENT , UNLESS THE DISCLOSUR E IS: 12
301		-
302		-	(1) AUTHORIZED EXPRESSLY BY A LAW OF THIS STATE OR THE 13
303		-	FEDERAL GOVERNMENT ; 14
304		-
305		-	(2) AUTHORIZED BY THE DA TA USE AGREEMEN T; OR 15
306		-
307		-	(3) REQUIRED BY A COURT ORDER. 16
308		-
309		-	13–1018. 17
310		-
311		-	An officer, employee, former officer, or former employee of the State [or of], a political 18
312		-	subdivision of the State, OR A PERSON, GOVERNMENTAL ENTITY , OR TAX COMPLIANCE 19
313		-	ORGANIZATION TO WHICH TAX INFORMATION HAS BEEN DISCLOSED IN 20
314		-	ACCORDANCE WITH § 13–203 OF THIS TITLE who makes a disclosure in violation of 21
315		-	Subtitle 2 of this title is guilty of a misdemeanor and, on conviction, is subject to a fine not 22
316		-	exceeding $1,000 or imprisonment not exceeding 6 months or both. 23
317		-
318		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 24
319		-	1, 2024. 25
320		-
321		-
	153	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 6
	154	+	1, 2024. 7
322	155