Representative Taggart, sponsor, presented Senate Bill 25-046. The bill clarifies confidentiality standards for the protection of taxpayer information used or obtained for a sales and use tax investigation performed by a third-party auditor on behalf of a local taxing jurisdiction. A violation of these standards is a misdemeanor punishable by a fine of no more than $1,000 per violation. The bill prohibits auditors from divulging any taxpayer information related to a sales and use tax audit except for in certain circumstances. Finally, the bill clarifies the Department of Revenue’s (DOR) authority to share taxpayer information with local taxing jurisdictions.

Representative Taggart responded to questions from the committee.

Michael Gifford, representing AGC Colorado, testified in support of the bill.

Representative Taggart provided concluding remarks on the bill.