Tax Return Info For Lfc Evaluation
The bill amends existing laws regarding taxpayer rights and the confidentiality of tax return information. Specifically, it establishes new provisions under Section 7-1-8.12 NMSA 1978 that allow for the controlled sharing of taxpayer information with the LFC under strict conditions. The bill mandates that any shared information must be aggregated, protecting the privacy of individuals and ensuring that personally identifiable information is not disclosed. It also stipulates that any return information shared must be destroyed within a year, thereby aiming to reduce the risk of misuse of sensitive taxpayer data.
House Bill 199 is focused on the realm of taxation, specifically authorizing the release of taxpayer return information to the staff of the Legislative Finance Committee (LFC). The main purpose of this bill is to allow the LFC to evaluate programs that may have a fiscal impact on the state or its political subdivisions. This legislative change aims to enable more informed decision-making regarding fiscal matters and enhance the efficacy of fiscal program assessments in New Mexico.
One of the notable points of contention surrounding HB 199 could revolve around the balance between increased governmental access to taxpayer data and the protection of individual privacy rights. Proponents argue that giving LFC access to this information is necessary for effective budgetary and financial oversight, which ultimately benefits the taxpayer through better governance and fiscal prudence. Conversely, critics may raise concerns about the potential for abuse of this access or argue that it could lead to unnecessary scrutiny of personal financial information. The bill's impact on existing confidentiality laws will also likely be debated, particularly regarding its alignment with the New Mexico Taxpayer Bill of Rights.