As Amended by House Committee
As Amended by Senate Committee
Session of 1999
SENATE BILL No. 69
By Committee on Commerce
1-19
11 AN ACT
concerning the department of revenue; relating to disclosure
12 of certain information
thereby; amending K.S.A. 75-5133 and K.S.A.
13 1998 Supp. 74-8017 and
repealing the existing sections.
14
15 Be it enacted by the Legislature of the
State of Kansas:
16
Section 1. K.S.A. 75-5133 is hereby amended
to read as follows: 75-
17 5133. (a) Except as otherwise
more specifically provided by law, all in-
18 formation received by the
director of taxation from applications for licen-
19 sure or registration made or
returns or reports filed under the provisions
20 of any law imposing any excise
tax administered by the director, or from
21 any investigation conducted
under such provisions, shall be confidential,
22 and it shall be unlawful for any
officer or employee of the department of
23 revenue to divulge any such
information except in accordance with other
24 provisions of law respecting the
enforcement and collection of such tax,
25 in accordance with proper
judicial order and as provided in K.S.A. 74-
26 2424, and amendments
thereto.
27
(b) Nothing in this section shall be construed to prohibit the
publi-
28 cation of statistics, so
classified as to prevent identification of
particular
29 reports or returns and the items
thereof, or the inspection of returns by
30 the attorney general. Nothing in
this section shall prohibit the post auditor
31 from access to all such excise
tax reports or returns in accordance with
32 and subject to the provisions of
subsection (g) of K.S.A. 46-1106, and
33 amendments thereto. Nothing in
this section shall be construed to pro-
34 hibit the disclosure of taxpayer
information from excise tax returns to
35 persons or entities contracting
with the secretary of revenue where the
36 secretary has determined
disclosure of such information is essential for
37 completion of the contract and
has taken appropriate steps to preserve
38
confidentiality.
39
(c) Notwithstanding the foregoing provisions of this section,
the di-
40 rector of taxation may provide
such information from returns and reports
41 filed under article 42 of
chapter 79 of the Kansas Statutes Annotated to
42 county appraisers as is
necessary to insure proper valuations of property.
2
1 Information from such
returns and reports may also be exchanged with
2 any other state agency
administering and collecting conservation or other
3 taxes and fees imposed on
or measured by mineral production. Nothing
4 in this section shall
prohibit the disclosure of oil and gas production
5
statistics.
6
(d) Notwithstanding the
provisions of this section, the secretary of
7 revenue may provide
such information to the president of Kansas, Inc.
as
8 required by K.S.A.
74-8017, and amendments thereto.
9
(d)
(e) Any person
receiving any information under the provisions of
10 subsection
(b), (c)or
(c) (d)
shall be subject to the confidentiality
provi-
11 sions of subsection (a) and to
the penalty provisions of subsection
(e)(f).
12
(e)
(f) Any violation of
this section shall be a class B nonperson mis-
13 demeanor, and if the offender is
an officer or employee of this state, such
14 officer or employee shall be
dismissed from office.
15 Section 1. K.S.A. 1999
Supp. 75-5133 is hereby amended to
16 read as follows: 75-5133. (a) Except as
otherwise more specifically
17 provided by law, all information
received by the director of taxa-
18 tion from applications for licensure or
registration made or returns
19 or reports filed under the provisions of
any law imposing any excise
20 tax administered by the director, or
from any investigation con-
21 ducted under such provisions, shall be
confidential, and it shall be
22 unlawful for any officer or employee of
the department of revenue
23 to divulge any such information except
in accordance with other
24 provisions of law respecting the
enforcement and collection of
25 such tax, in accordance with proper
judicial order and as provided
26 in K.S.A. 74-2424, and amendments
thereto.
27 (b) Nothing in
this section shall be construed to prohibit the
28 publication of statistics, so classified
as to prevent identification of
29 particular reports or returns and the
items thereof, or the inspec-
30 tion of returns by the attorney general.
Nothing in this section shall
31 prohibit the post auditor from access to
all such excise tax reports
32 or returns in accordance with and
subject to the provisions of sub-
33 section (g) of K.S.A. 46-1106, and
amendments thereto. Nothing
34 in this section shall be construed to
prohibit the disclosure of tax-
35 payer information from excise tax
returns to persons or entities
36 contracting with the secretary of
revenue where the secretary has
37 determined disclosure of such
information is essential for comple-
38 tion of the contract and has taken
appropriate steps to preserve
39 confidentiality.
40
(c) Notwithstanding the foregoing provisions of this
section,
41 the director of taxation may provide
such information from returns
42 and reports filed under article 42 of
chapter 79 of the Kansas Stat-
43 utes Annotated to county appraisers as
is necessary to insure
3
1 proper valuations of property.
Information from such returns and
2 reports may also be exchanged with
any other state agency admin-
3 istering and collecting
conservation or other taxes and fees im-
4 posed on or measured by mineral
production. Nothing in this sec-
5 tion shall prohibit the disclosure
of the following oil and gas
6 production statistics received by
the department of revenue in ac-
7 cordance with K.S.A. 79-4216
et seq. and amendments thereto: Vol-
8 umes of production by well name,
well number, operator's name
9 and identification number assigned
by the state corporation com-
10 mission, lease name, leasehold property
description, county of pro-
11 duction or zone of production, name of
purchaser and purchaser's
12 tax identification number assigned by
the department of revenue,
13 name of transporter, field code number
or lease code, tax period,
14 exempt production volumes by well name
or lease, or any combi-
15 nation of this information.
16
(d) Notwithstanding the foregoing provisions of this
section, the sec-
17 retary of revenue may provide such
information to the president of Kan-
18 sas, Inc. as required by K.S.A. 74-8017,
and amendments thereto.
19 (d)
(e) Any person receiving any information under the
provi-
20 sions of subsection (b)
or, (c) or (d) shall be
subject to the confi-
21 dentiality provisions of subsection (a)
and to the penalty provisions
22 of subsection (e)
(f).
23
(e) (f) Any violation of this
section shall be a class B nonperson
24 misdemeanor, and if the offender is an
officer or employee of this
25 state, such officer or employee shall be
dismissed from office.
26 Sec.
2. K.S.A. 1998 1999 Supp.
74-8017 is hereby amended to read
27 as follows: 74-8017. (a) It shall be
the duty of Kansas, Inc. to prepare an
28 annual report evaluating the cost
effectiveness of the various income tax
29 credits and sales tax exemptions enacted to
encourage economic devel-
30 opment within this state and submit the
same to the standing committees
31 on taxation and economic development of the
house and assessment and
32 taxation and commerce of the senate at the
beginning of each regular
33 session of the legislature.
The For taxable years commencing
after
34 December 31,
1999 2000,
the secretary of revenue shall develop a
ques-
35 tionnaire on the utilization of
state income tax credits and sales tax ex-
36 emptions that shall be completed by
all corporate taxpayers subject to
37 state income tax that shall be
submitted to the department of revenue
38 concurrently with the filing of an
annual corporate income tax return.
39 The questionnaire shall require
respondents to indicate utilization of the
40 following credits and
exemptions provide Kansas, Inc. with the names,
41 addresses, and if available, telephone
numbers of individual, corporate
42 and privilege tax filers utilizing the
economic development credits named
43 below for the purpose of conducting a
confidential survey of those firms:
4
1 (1) Income
tax credits, premium or privilege tax credits for
invest-
2 ment in a qualified business
facility and creation of new employment
3 authorized under the
provisions of the job expansion and investment
4 credit act of 1976 and acts
amendatory thereof and supplemental thereto
5 pursuant to K.S.A. 79-32,153, and
amendments thereto;
6
(2) income tax, premium or privilege tax credits for
investment in a
7 qualified business facility and
for the creation of new employment au-
8 thorized under the provisions of
K.S.A. 79-32,160a, and amendments
9 thereto;
10 (2)
(3) income tax credits for expenditures in research and
develop-
11 ment activities authorized by K.S.A.
79-32,182 and 79-32,182a, and
12 amendments thereto;
13 (3)
(4) income and financial institutions privilege tax
credits for cash
14 investment in stock of Kansas Venture
Capital, Inc. authorized by K.S.A.
15 74-8205 and 74-8206, and amendments
thereto;
16 (4)
(5) income tax credits for cash investment in certified
Kansas ven-
17 ture capital companies authorized by K.S.A.
74-8304, and amendments
18 thereto;
19 (5)
(6) income tax credits for cash investment in certified
local seed
20 capital pools authorized by K.S.A. 74-8401,
and amendments thereto;
21 (6)
(7) income tax credits, premium or privilege tax
credits for in-
22 vestment in the training and education of
qualified firms' employees au-
23 thorized by K.S.A. 1998 Supp. 74-50,132,
and amendments thereto; and
24 (7) sales
tax exemptions for property or services purchased for
the
25 purpose of and in conjunction with
constructing, reconstructing, enlarg-
26 ing or remodeling a business, or
retail business meeting the requirements
27 of K.S.A. 74-50,115, and amendments
thereto, and machinery and equip-
28 ment for installation at such
business or retail business authorized by
29 subsection (ee) of K.S.A. 1993
Supp. 79-3606a, and amendments thereto;
30 and
31 (8) sales
tax exemptions for machinery and equipment used
directly
32 and primarily for the purposes of
manufacturing, assembling, processing,
33 finishing, storing, warehousing or
distributing articles of tangible personal
34 property in this state intended for
resale by a manufacturing or processing
35 plant or facility or a storage,
warehousing or distribution facility. The
36 secretary of revenue shall provide
the completed questionnaires and cop-
37 ies of sales tax exemption
certificates to Kansas, Inc. for the preparation
38 of such report.
39 (8) tax
credits against income tax, privilege or premium tax
credits
40 for qualified investment which exceeds
$50,000 authorized by K.S.A. 74-
41 50,132 and 79-32,160a(e), and amendments
thereto.
42
(b) In addition For taxable
years commencing after December
43 31,
1999 2000, the
secretary of revenue shall provide Kansas, Inc. copies
5
1 of applications for project
exemption certificates completed by taxpayers
2 and approved by the secretary of
revenue for the purpose of receiving
3 sales tax exemption on property or
services purchased for the purpose of
4 and in conjunction with
constructing, reconstructing, enlarging or re-
5 modeling a business meeting the
requirements of K.S.A. 74-50,115, and
6 amendments thereto, and machinery
and equipment for installation at
7 such qualified business authorized
by subsection (cc) of K.S.A. 79-3606,
8 and amendments thereto, for the
preparation of such report.
9
(c) Nothing in this section shall be construed to allow
disclosure of
10 the amount of income or any particulars
set forth or disclosed in any
11 report, return, federal return or
federal return information, where such
12 disclosure is prohibited by the federal
internal revenue code as in effect
13 on September 1, 1996, and amendments
thereto, related federal internal
14 revenue rules and regulations or other
federal law.
15 Sec. 3. K.S.A. 75-5133 and
K.S.A. 1998 Supp. 74-8017 are hereby
16 repealed.
17 Sec. 4. This act shall
take effect and be in force from and after its
18 publication in the statute book.