SB 23

This bill requires the Department of Revenue (DOR) to take certain actions

related to administering taxes and fees. Under the bill, generally, with regard to any

audit, assessment, or claim for a refund, DOR may not take a position that is contrary

to any rule promulgated by DOR that was in effect during the period related to the

audit, assessment, or claim or that is contrary to any guidance published by DOR

prior to that period and not subsequently retracted, altered, or amended.

Under the bill, generally, a person who is subject to an assessment or audit

determination by DOR is not liable for any amount that DOR asserts that the person

owes if the liability asserted is the result of a tax issue that existed in a prior

assessment or audit, a DOR employee involved in the prior assessment or audit knew

of the tax issue, and DOR did not assert the liability for the tax issue at the time of

the prior assessment or audit. This provision, however, does not cover the treatment

of tax issues that were not specifically addressed in the prior assessment or audit

determination by DOR.

Under the bill, DOR may not impose a penalty on a taxpayer for negligence or

for otherwise filing an improper return unless the the taxpayer's action was due to

the taxpayer's willful neglect and not to reasonable cause.

The bill prohibits class action lawsuits against the state or any other party if

the relief sought by the plaintiff includes the refund of any tax administered by the

state.

Under current law, DOR may choose not to appeal a ruling by the Tax Appeals

Commission (commission) and, instead, file a notice of nonacquiescence with the

clerk of the commission. The effect of filing the notice is that, although the

commission's decision is binding on the parties involved in the ruling, the

commission's legal reasoning is not binding on DOR with regard to future cases.

Under the bill, although DOR may file a notice of nonacquiescence and, therefore,

not be required to follow the commission's legal reasoning, the parties involved in the

ruling are bound by the commission's decision and the decision may be cited by the

commission and the courts in future cases.

Under current law, a person may file a petition with a state agency to issue a

declaratory ruling with respect to how a statute or rule applies to any person,

property, or set of facts. The agency must, within a reasonable time after receiving

the petition, either deny the petition for failure to complete a proper petition or

schedule a hearing for the matter described in the petition. Under the bill, if a person

files a petition with DOR to issue a declaratory ruling, DOR must deny the petition,

issue a notice that it will issue a ruling on the facts contained in the petition, or

schedule a hearing for the matter described in the petition no later than 30 days after

receiving the petition. If DOR does not deny the petition and does not issue a notice,

DOR must hold a hearing and determine, no later than 180 days after it receives the

petition, whether the person submitting the petition has presented sufficient facts