HB 199/a
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AN ACT
RELATING TO TAXATION; AUTHORIZING THE REVEAL OF TAXPAYER
RETURN INFORMATION TO STAFF OF THE LEGISLATIVE FINANCE
COMMITTEE TO EVALUATE PROGRAMS THAT HAVE A FISCAL IMPACT TO
THE STATE OR A POLITICAL SUBDIVISION OF THE STATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-1-4.2 NMSA 1978 (being Laws 2003,
Chapter 398, Section 2, as amended) is amended to read:
"7-1-4.2. NEW MEXICO TAXPAYER BILL OF RIGHTS.--The
rights afforded New Mexico taxpayers during the assessment,
collection and enforcement of any tax administered by the
department as set forth in the Tax Administration Act
include:
A. the right to available public information and
prompt and courteous tax assistance;
B. the right to be represented or advised by
counsel or other qualified representatives at any time in
administrative interactions with the department in accordance
with the provisions of Section 7-1-24 NMSA 1978 or the
administrative hearings office in accordance with the
provisions of the Administrative Hearings Office Act;
C. 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
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1978;
D. the right to have the department conduct its
audits in a timely and expeditious manner and be entitled to
the tolling of interest as provided in the Tax Administration
Act;
E. the right to obtain nontechnical information
that explains the procedures, remedies and rights available
during audit, protest, appeals and collection proceedings
pursuant to the Tax Administration Act;
F. the right to be provided with an explanation of
the results of and the basis for audits, assessments or
denials of refunds that identify any amount of tax, interest
or penalty due;
G. the right to seek review, through formal or
informal proceedings, of any findings or adverse decisions
relating to determinations during audit or protest procedures
in accordance with the provisions of Section 7-1-24 NMSA 1978
and the Administrative Hearings Office Act;
H. the right to have the taxpayer's tax
information kept confidential unless otherwise authorized by
the Tax Administration Act;
I. 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 1978, and
the right to seek a compromise of an asserted tax liability HB 199/a
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by obtaining a written determination of liability or
nonliability when the secretary in good faith is in doubt of
the liability as provided in Section 7-1-20 NMSA 1978;
J. upon receipt of a tax assessment, the right to
be informed clearly that if the assessment is not paid,
secured, protested or otherwise provided for in accordance
with the provisions of Section 7-1-16 NMSA 1978, the taxpayer
will be a delinquent taxpayer and, upon notice of
delinquency, the right to timely notice of any collection
actions that will require sale or seizure of the taxpayer's
property in accordance with the provisions of the Tax
Administration Act; and
K. the right to procedures for payment of tax
obligations by installment payment agreements, in accordance
with Section 7-1-21 NMSA 1978."
SECTION 2. Section 7-1-8 NMSA 1978 (being Laws 1965,
Chapter 248, Section 13, as amended) is amended to read:
"7-1-8. CONFIDENTIALITY OF RETURNS AND OTHER
INFORMATION.--
A. 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 7-1-8.12 NMSA 1978.
B. A return or return information revealed
pursuant to Sections 7-1-8.1 through 7-1-8.12 NMSA 1978: HB 199/a
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(1) may only be revealed to a person
specifically authorized to receive the return or return
information and the employees, directors, officers and agents
of such person whose official duties or duties in the course
of their employment require the return or return information
and to an employee of the department;
(2) may only be revealed for the authorized
purpose and only to the extent necessary to perform that
authorized purpose;
(3) shall at all times be protected from
being revealed to an unauthorized person by physical,
electronic or any other safeguards specified by directive by
the secretary; and
(4) shall be returned to the secretary or
the secretary's delegate or destroyed as soon as it is no
longer required for the authorized purpose.
C. If any provision of Sections 7-1-8.1 through
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:
(1) list the name and position of any
official or employee of the person to whom a return or return
information is authorized to be revealed under the provision;
(2) describe the specific purpose for which HB 199/a
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the return or return information is to be used;
(3) describe the procedures and safeguards
the person has in place to ensure that the requirements of
Subsection B of this section are met; and
(4) provide for reimbursement to the
department for all costs incurred by the department in
supplying the returns or return information to, and
administering the agreement with, the person.
D. A return or return information that is lawfully
made public by an employee of the department or any other
person, or that is made public by the taxpayer, is not
subject to the provisions of this section once it is made
public."
SECTION 3. A new Section 7-1-8.12 NMSA 1978 is enacted
to read:
"7-1-8.12. INFORMATION THAT MAY BE REVEALED TO STAFF OF
THE LEGISLATIVE FINANCE COMMITTEE.--
A. An employee of the department may reveal to
staff of the legislative finance committee return information
for purposes provided in this section.
B. Upon request by the director of the legislative
finance committee, including by electronic means, the
department shall provide return information, except that
which is prohibited by law, to the staff of the legislative
finance committee. In cases where access is prohibited by HB 199/a
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federal law, and upon an additional request by the director,
the department shall provide the requested return
information, redacting any prohibited information. In regard
to return information filed pursuant to the Income Tax Act,
Corporate Income and Franchise Tax Act, Withholding Tax Act,
Oil and Gas Proceeds and Pass-Through Entity Withholding Tax
Act and Uniform Division of Income for Tax Purposes Act, the
department shall only provide aggregated data of at least
three taxpayers, or more if necessary to maintain federal
standards for confidential return information, as determined
by the department, and shall not include personally
identifiable information.
C. Prior to the initial reveal of return
information to the staff of the legislative finance
committee, the department and the director of the legislative
finance committee shall enter into a memorandum of
understanding for security protocols regarding the
confidentiality of the return information. The memorandum of
understanding shall be in effect for any subsequent requests
to reveal return information. 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.
D. If the information requested pursuant to HB 199/a
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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.
E. The department shall provide visible and
clearly marked notification of confidential return
information provided pursuant to this section, redacting any
prohibited information pursuant to Subsection B of this
section. The staff of the legislative finance committee
shall not reveal such return information unless the
information is aggregated to at least three businesses.
F. The staff of the legislative finance committee
receiving return information pursuant to this section is
prohibited from requesting or using the information for any
purpose other than to evaluate programs that have a fiscal
impact to the state or a political subdivision of the state.
G. Confidential return information received
pursuant to this section shall be destroyed as soon as it is
no longer required for the purposes authorized by this
section."
SECTION 4. Section 7-1-76 NMSA 1978 (being Laws 1965,
Chapter 248, Section 76, as amended) is amended to read:
"7-1-76. REVEALING INFORMATION CONCERNING TAXPAYERS.--A
person who reveals to another person any return or return HB 199/a
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information that is prohibited from being revealed pursuant
to Section 7-1-8 NMSA 1978 or who uses a return or return
information for any purpose except as authorized by the Tax
Administration Act is guilty of a misdemeanor and shall, upon
conviction thereof, be fined not more than one thousand
dollars ($1,000) or imprisoned up to one year, or both,
together with costs of prosecution, and shall not be employed
by the state for a period of five years after the date of the
conviction."
SECTION 5. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.