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Bill > SB046


CO SB046

CO SB046
Local Government Tax Audit Confidentiality Standards


summary

Introduced
01/08/2025
In Committee
02/20/2025
Crossed Over
03/12/2025
Passed
03/12/2025
Dead
Signed/Enacted/Adopted
03/20/2025

Introduced Session

2025 Regular Session

Bill Summary

CONCERNING LOCAL GOVERNMENT SALES OR USE TAX INVESTIGATIONS, AND, IN CONNECTION THEREWITH, ESTABLISHING UNIFORM CONFIDENTIALITY STANDARDS FOR THE PROTECTION OF TAXPAYER INFORMATION.

AI Summary

This bill establishes uniform confidentiality standards for local government sales and use tax investigations, creating detailed rules for third-party auditors who conduct tax investigations on behalf of local jurisdictions. The bill defines key terms such as "local taxing jurisdiction" (which includes statutory local governments, special districts, and home rule jurisdictions), "sales or use tax", and "third-party auditor". It mandates that third-party auditors cannot divulge information obtained during tax investigations, with some specific exceptions, such as sharing information with authorized local government officials, providing the taxpayer with their own records, publishing anonymous statistical information, and sharing data with tax authorities. The bill also allows taxpayers to voluntarily waive confidentiality protections through a written, signed document. Violations of these confidentiality requirements can result in misdemeanor charges and fines of up to $1,000 per violation. Additionally, the bill makes a minor amendment to an existing statute regarding the sharing of taxpayer information and is set to take effect on July 1, 2025. The purpose of the bill appears to be protecting taxpayer information while still allowing necessary information sharing for tax compliance and investigation purposes.

Committee Categories

Budget and Finance

Sponsors (17)

Last Action

Governor Signed (on 03/20/2025)

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