Bill putting taxpayer information at risk passes committee
SPRINGFIELD - Legislation that would allow third parties hired by local governments to view Illinois businesses' confidential sales tax information has passed out of the House Revenue & Finance Committee. HB 2717, proposed by Representative Chris Welch (D-Westchester) would mostly benefit a private company called Azavar, while putting businesses' sensitive tax information at risk.
At a public hearing last May, the sponsor and a local mayor admitted local governments are sharing this confidential tax information in violation of existing law.
"We cannot allow businesses' sensitive information to be jeopardized to legitimize one company's business plans or legalize illegal behavior of government officials. Local governments have no reason to utilize third party companies especially since the IDOR provides assistance to local governments, free of charge, to help them ensure they are receiving the correct tax revenues. There are real doubts that local governments need anything more than the geo-location list IDOR provides free of charge," said Rob Karr, president & CEO, IRMA.
Currently, the tax information local governments receive from IDOR is protected by strict confidentiality requirements imposed by IDOR. Allowing access to this information outside a strict chain-of-custody endangers taxpayer information.
This proposal was first introduced in 2016 as SB 2933, and was met with opposition by many business groups, the IDOR, and every reputable neutral policy entity, including the CPA Society, Council on State Taxation, and National Conference of State Legislators, citing the need to keep businesses' sensitive sales tax information private. Prior to its introduction in the House this year, a similar measure was twice defeated in the Senate last year. IRMA will continue to educate lawmakers on the effects this will have on taxpayers and work to defeat this legislation in the House.