HomeMy WebLinkAboutMINUTES - 03312015 - C.49RECOMMENDATION(S):
ADOPT a position of "Support" on AB 279 (Dodd), a bill that amends existing law that authorizes tax officials to
enter into a reciprocal agreement with the Franchise Tax Board to obtain tax information from the Franchise Tax
Board, to extend that authorization to counties, as recommended by the Treasurer-Tax Collector.
FISCAL IMPACT:
This bill could save the Contra Costa Treasurer-Tax Collector money in finding those owing delinquent unsecured
property taxes and County business license fees.
BACKGROUND:
The Treasurer-Tax Collector, Mr. Russell Watts, requests that the Board of Supervisors adopt a position of "Support"
on this bill, which would authorize his office to enter into an information sharing relationship with the Franchise Tax
Board (FTB). The information-sharing relationship is based on an existing relationship that cities are legislatively
authorized to enter into with the FTB. This legislation will enhance information sharing and tax collection
capabilities with the State, to maximize tax collection dollars from those taxpayers and businesses that owe either the
State or a County money. This relationship could be mutually beneficial.
Given the inextricable financial ties between Counties and the State, it seems a logical and efficient addition to the
statute to permit County revenue officers and their state counterpart to closely coordinate and share information, so as
to ensure timely, efficient and accurate tax collection.
The bill, as introduced, in included in Attachment A.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 03/31/2015 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
ABSENT:John Gioia, District I
Supervisor
Federal D. Glover, District V
Supervisor
Contact: L. DeLaney, 925-335-1097
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: March 31, 2015
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
C. 49
To:Board of Supervisors
From:David Twa, County Administrator
Date:March 31, 2015
Contra
Costa
County
Subject:Support Position on AB 279 (Dodd): Disclosure of Information: Franchise Tax Board
BACKGROUND: (CONT'D)
LEGISLATIVE COUNSEL'S DIGEST
AB 279, as introduced, Dodd. Tax administration: disclosure of information: Franchise Tax Board and cities and
counties.
Existing law authorizes, until January 1, 2019, a city that has entered into a reciprocal agreement, as defined, with
the Franchise Tax Board, to exchange tax information, as provided. Existing law requires, until January 1, 2019,
upon the request of the Franchise Tax Board, each city that assesses a city business tax or requires a city business
license to annually submit to the board specified information relating to the administration of the city's business
tax program. Existing law defines the term "city" to include, among others, a city and county. Existing law limits
the collection and use of this information and provides that any unauthorized use of this information is punishable
as a misdemeanor.
This bill would expand these provisions to additionally apply to a county.
ATTACHMENTS
Attachment A: AB 279 (Dodd)
california legislature—2015–16 regular session
ASSEMBLY BILL No. 279
Introduced by Assembly Member Dodd
February 11, 2015
An act to amend Sections 19551.1 and 19551.5 of the Revenue and
Taxation Code, relating to taxation.
legislative counsel’s digest
AB 279, as introduced, Dodd. Tax administration: disclosure of
information: Franchise Tax Board and cities and counties.
Existing law authorizes, until January 1, 2019, a city that has entered
into a reciprocal agreement, as defined, with the Franchise Tax Board,
to exchange tax information, as provided. Existing law requires, until
January 1, 2019, upon the request of the Franchise Tax Board, each city
that assesses a city business tax or requires a city business license to
annually submit to the board specified information relating to the
administration of the city’s business tax program. Existing law defines
the term “city” to include, among others, a city and county. Existing
law limits the collection and use of this information and provides that
any unauthorized use of this information is punishable as a
misdemeanor.
This bill would expand these provisions to additionally apply to a
county. By expanding the scope of a crime, this bill would impose a
state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act
for a specified reason.
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Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 19551.1 of the Revenue and Taxation
line 2 Code is amended to read:
line 3 19551.1. (a) (1) The Franchise Tax Board may permit the tax
line 4 officials of any city city, county, or city and county to enter into a
line 5 reciprocal agreement with the Franchise Tax Board to obtain tax
line 6 information from the Franchise Tax Board, as specified in
line 7 subdivision (b).
line 8 (2) For purposes of this section, “reciprocal agreement” means
line 9 a formal agreement to exchange information for tax administration
line 10 purposes between tax officials of a city city, county, or city and
line 11 county, and the Franchise Tax Board.
line 12 (b) The information furnished to tax officials of a city city,
line 13 county, or city and county under this section shall be limited as
line 14 follows:
line 15 (1) The tax officials of a city city, county, or city and county
line 16 are authorized to receive information only with respect to taxpayers
line 17 with an address as reflected on the Franchise Tax Board’s records
line 18 within the jurisdictional boundaries of the city city, county, or city
line 19 and county who report income from a trade or business to the
line 20 Franchise Tax Board.
line 21 (2) The tax information that may be provided by the Franchise
line 22 Tax Board to a city city, county, or city and county is limited to a
line 23 taxpayer’s name, address, social security or taxpayer identification
line 24 number, and business activity code.
line 25 (3) Tax information provided to the taxing authority of a city
line 26 may city, county, or city and county shall not be furnished to, or
line 27 used by, any person other than an employee of that taxing authority
line 28 and shall be utilized in a form and manner to safeguard the tax
line 29 information as required by the Franchise Tax Board, including,
line 30 but not limited to:
line 31 (A) The completion of a data exchange security questionnaire
line 32 provided by the Franchise Tax Board prior to approval of a data
line 33 exchange by the Franchise Tax Board.
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line 1 (B) The tax official of a city city, county, or city and county
line 2 shall allow for an onsite safeguard review conducted by the
line 3 Franchise Tax Board.
line 4 (C) The completion of disclosure training provided by the
line 5 Franchise Tax Board and a confidentiality statement signed by all
line 6 employees with access to information provided by the Franchise
line 7 Tax Board confirming the requirement of data security with respect
line 8 to that information and acknowledging awareness of penalties for
line 9 unauthorized access or disclosure under Sections 19542 and 19552
line 10 of this code and Section 502 of the Penal Code.
line 11 (D) The tax official of a city city, county, or city and county
line 12 shall notify the Franchise Tax Board within 24 hours upon
line 13 discovery of any incident of unauthorized or suspected
line 14 unauthorized access or disclosure of the tax information and
line 15 provide a detailed report of the incident and the parties involved.
line 16 (E) All records received by the tax officials of a city city, county,
line 17 or city and county shall be destroyed in a manner to make them
line 18 unusable or unreadable so an individual record may no longer be
line 19 ascertained in a timeframe specified by the Franchise Tax Board.
line 20 (4) The information provided to the tax officials of the city city,
line 21 county, or city and county by the Franchise Tax Board under this
line 22 section is subject to Section 19542, and may not be used for any
line 23 purpose other than the city’s city, county, or city and county’s tax
line 24 enforcement, or as otherwise authorized by state or federal law.
line 25 (5) Section 19542.1 applies to this section.
line 26 (c) The Franchise Tax Board may not provide any information
line 27 pursuant to this section until all of the following have occurred:
line 28 (1) An agreement has been executed between a city city, county,
line 29 or city and county and the Franchise Tax Board, that provides that
line 30 an amount equal to all first year costs necessary to furnish the city
line 31 city, county, or city and county information pursuant to this section
line 32 shall be received by the Franchise Tax Board before the Franchise
line 33 Tax Board incurs any costs associated with the activity permitted
line 34 by this section. For purposes of this section, first year costs include
line 35 costs associated with, but not limited to, the purchasing of
line 36 equipment, the development of processes, and labor.
line 37 (2) An agreement has been executed between a city city, county,
line 38 or city and county and the Franchise Tax Board, that provides that
line 39 the annual costs incurred by the Franchise Tax Board, as a result
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AB 279— 3 —
line 1 of the activity permitted by this section, shall be reimbursed by
line 2 the city city, county, or city and county to the Franchise Tax Board.
line 3 (3) Pursuant to the agreement described in paragraph (1), the
line 4 Franchise Tax Board has received an amount equal to the first year
line 5 costs.
line 6 (d) Any information, other than the type of tax information
line 7 specified in subdivision (b), may be requested by the tax officials
line 8 of a city city, county, or city and county from the Franchise Tax
line 9 Board by affidavit. At the time a tax official makes the request,
line 10 he or she shall provide the person whose information is the subject
line 11 of the request, with a copy of the affidavit and, upon request, make
line 12 the information obtained available to that person.
line 13 (e) This section does not invalidate any other law. This section
line 14 does not preclude any city or county city, county, or city and county
line 15 from obtaining information about individual taxpayers, including
line 16 those taxpayers not subject to this section, by any other means
line 17 permitted by state or federal law.
line 18 (f) Nothing in this section shall be construed to affect any
line 19 obligations, rights, or remedies regarding personal information
line 20 provided under state or federal law.
line 21 (g) Notwithstanding subdivision (c), the Franchise Tax Board
line 22 shall waive a city’s city, county, or city and county’s reimbursement
line 23 of the Franchise Tax Board’s cost if a city city, county, or city and
line 24 county enters into a reciprocal agreement as defined in paragraph
line 25 (2) of subdivision (a). The reciprocal agreement shall specify that
line 26 each party shall bear its own costs to furnish the data involved in
line 27 the exchange authorized by this section and Section 19551.5, and
line 28 a city city, county, or city and county shall be precluded from
line 29 obtaining reimbursement as specified under Section 5 of the act
line 30 adding this subdivision.
line 31 (h) This section shall remain in effect only until January 1, 2019,
line 32 and as of that date, is repealed.
line 33 SEC. 2. Section 19551.5 of the Revenue and Taxation Code
line 34 is amended to read:
line 35 19551.5. (a) Notwithstanding any other law, each city city,
line 36 county, or city and county that assesses a city city, county, or city
line 37 and county business tax or requires a city city, county, or city and
line 38 county business license shall, upon the request of the Franchise
line 39 Tax Board, annually submit to the Franchise Tax Board the
line 40 information that is collected in the course of administration of the
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line 1 city’s city, county, or city and county’s business tax or business
line 2 license program, as described in subdivision (b).
line 3 (b) Information, collected in the course of administration of the
line 4 city’s city, county, or city and county’s business tax or business
line 5 license program, shall be limited to the following:
line 6 (1) Name of the business, if the business is a corporation,
line 7 partnership, or limited liability company, or the owner’s name if
line 8 the business is a sole proprietorship.
line 9 (2) Business mailing address.
line 10 (3) Federal employer identification number, if applicable, or
line 11 the business owner’s social security number, if known.
line 12 (4) Standard Industrial Classification (SIC) Code or North
line 13 American Industry Classification System (NAICS) Code.
line 14 (5) Business start date.
line 15 (6) Business cease date.
line 16 (7) City, county, or city and county account or license number.
line 17 (8) Ownership type.
line 18 (c) The reports required under this section shall be filed on
line 19 magnetic media such as tapes or compact discs, through a secure
line 20 electronic process, or in other machine-readable form, according
line 21 to standards prescribed by regulations promulgated by the
line 22 Franchise Tax Board.
line 23 (d) Cities that receive a request from the Franchise Tax Board
line 24 shall begin providing to the Franchise Tax Board the information
line 25 required by this section as soon as economically feasible, but no
line 26 later than December 31, 2009. The information shall be furnished
line 27 annually at a time and in the form that the Franchise Tax Board
line 28 may prescribe by regulation.
line 29 (e) The city city, county, or city and county data provided to the
line 30 Franchise Tax Board under this section is subject to Section 19542,
line 31 and may not be used for any purpose other than state tax
line 32 enforcement or as otherwise authorized by law.
line 33 (f) If a city city, county, or city and county enters into a
line 34 reciprocal agreement with the Franchise Tax Board pursuant to
line 35 subdivision (a) of Section 19551.1, the city city, county, or city
line 36 and county shall also waive reimbursement for costs incurred to
line 37 provide information required under this section and shall be
line 38 precluded from obtaining reimbursement as specified under Section
line 39 5 of Chapter 345 of the Statutes of 2008. The reciprocal agreement
line 40 shall specify that each party shall bear its own costs to furnish the
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AB 279— 5 —
line 1 data involved in the exchange authorized by Section 19551.1 and
line 2 this section, and the Franchise Tax Board shall be precluded from
line 3 obtaining reimbursement as specified under subdivision (c) of
line 4 Section 19551.1.
line 5 (g) A city city, county, or city and county shall not be required
line 6 to provide information to the Franchise Tax Board pursuant to this
line 7 section if the Franchise Tax Board fails to provide tax information
line 8 to the city city, county, or city and county pursuant to a reciprocal
line 9 agreement entered into pursuant to subdivision (a) of Section
line 10 19551.1 for reasons other than concerns related to confidentiality
line 11 of tax information provided to the city. city, county, or city and
line 12 county.
line 13 (h) This section shall remain in effect only until January 1, 2019,
line 14 and as of that date, is repealed.
line 15 SEC. 3. No reimbursement is required by this act pursuant to
line 16 Section 6 of Article XIII B of the California Constitution because
line 17 the only costs that may be incurred by a local agency or school
line 18 district will be incurred because this act creates a new crime or
line 19 infraction, eliminates a crime or infraction, or changes the penalty
line 20 for a crime or infraction, within the meaning of Section 17556 of
line 21 the Government Code, or changes the definition of a crime within
line 22 the meaning of Section 6 of Article XIII B of the California
line 23 Constitution.
O
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