Texas House Bill HB3872

Texas 2019 - 86th Regular

Caption

Relating to data matching with financial institutions to facilitate the collection of state delinquent tax liabilities.

Impact

The bill significantly impacts the way Texas manages tax collections, particularly for those who have fallen behind on their tax obligations. With the permission to conduct periodic data matches with financial institutions, the Comptroller's office will gain access to essential financial information that can assist in enforcing tax collections more effectively. This could lead to improved compliance and potentially increase the amount of revenue collected from delinquent taxpayers.

Summary

House Bill 3872 addresses the collection of state delinquent tax liabilities by enabling data matching between the Texas Comptroller's office and financial institutions. The bill provides a framework for how the Comptroller can request financial institutions to compare their account holders' information against a list of individuals or entities with delinquent taxes. By establishing this data-sharing mechanism, the bill aims to streamline the process of identifying and collecting outstanding tax liabilities, thereby enhancing state revenue.

Contention

While the intent of HB 3872 is to strengthen tax collection efforts, there are concerns regarding privacy and the potential for misuse of sensitive financial information. Critics may argue that the bill places undue burden on financial institutions and questions the boundaries of data sharing, particularly regarding the confidentiality of account holders. Additionally, the stipulations that prevent financial institutions from notifying their customers about matches could raise ethical concerns regarding transparency and the rights of taxpayers.