Bill to Allow Limited Access to Taxpayer Information Moves Forward

January 18, 2018

HB 495 (Hodges) authorizes a local commissioner of the revenue or treasurer to disclose taxpayer information to a non-governmental entity with whom the locality has contracted to provide services related to tax administration.  For the contractor to have access to this information, the contractor would agree to be bound by the confidentiality provisions that apply to the commissioner or treasurer.  This authority is currently granted to the state Tax Commissioner, and extending it to local commissioners and treasurers will assist localities that require outside expertise to undertake certain projects, such as upgrading software systems in commissioners’ or treasurers’ offices.  The bill was heard in the House Finance Committee’s Subcommittee #1 on January 17 and unanimously recommended for reporting by the full committee.  The subcommittee also agreed to technical amendments that would provide the same authority to local directors of finance (who fill the role of commissioners and treasurers in those localities that have eliminated those constitutional offices).  VACo spoke in favor of the bill.

VACo Contact: Katie Boyle

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