Taxpayer Receipt Act

Policy Status

  • Type: Model Policy
  • Status: Final
  • Date Introduced: July 27, 2023
  • Date Finalized: August 28, 2023

Issues

  • Tax Reform

    • Task Forces

  • Tax and Fiscal Policy

    • Related Articles

    Tags

  • AM 2023
  • Responsible Budgeting

    • Summary

    Requires the department of state revenue (department) to annually provide each resident individual taxpayer who filed a return in the immediately previous taxable year a taxpayer receipt statement in an electronic format explaining how the individual taxpayer's taxes are being used. Requires the department, in consultation with the budget agency, to create and administer an Internet web page on which individual taxpayers may access an estimate of the allocation of their tax payments to various expenditure categories for the most recent state fiscal year based on the adjusted gross income taxes paid by the taxpayer. Specifies the information that must be provided on the web page. Requires the department to include a link to the web page on the state's individual tax return.
    Draft

    Taxpayer Receipt Act

    SECTION 1. DEFINITIONS

    “Department” means the Department of Management and Budget, Department of Revenue, or the Office of State Policy and Budget (depending on the state).

    “Major state taxes” means income, sales, alcohol, tobacco, and motor vehicle fuels tax.

    SECTION 2. TAXPAYER RECEIPT.

    (a) The department shall develop and publish, include, or link to an interactive taxpayer receipt web-based application per this section. The receipt shall describe the share of state expenditures represented by major expenditure categories in the most recent fiscal year for which data is available. The receipt shall show the approximate allocation of motor vehicle fuel taxes among eligible transportation purposes.

    (b) The web-based application shall allow a user to estimate the amount of major state taxes paid by the user. The web-based application shall show how taxes an individual taxpayer pays are allocated to each major expenditure category based on the category’s percentage share of total state spending.

    (c) The web-based application shall estimate the amount of income and direct sales taxes paid based on the taxpayer’s income and age. The web-based application shall give the user the option to estimate taxes paid for tobacco, alcohol, or purchased motor vehicle fuel in the previous year and provide a corresponding estimate of the tobacco, alcohol, and motor vehicle fuel taxes paid by the user.

    (d) The department shall not provide a taxpayer with a copy of the taxpayer’s receipt by mail.

    SECTION 3. VENDOR REQUIREMENTS

    (a) The department shall issue a request for proposals for the scope of services mentioned in this section within 90 days of the enrollment date of this Act, and the web-based application shall be live on the department’s website by [DATE].

    (b) To satisfy the requirements of this Act, a vendor submitting a proposal to the department to develop and publish a taxpayer receipt web-based application shall display the ability:

    (i) To develop and implement a user-friendly and approachable web-based application mimicking a standard receipt, evidenced by successfully implementing a similar web-based application in at least ten cities, counties, or states in the United States.

    (ii) To create an estimate based on an economically sound methodology for an individual taxpayer’s tax liability for major state taxes.

    (iii) To display contextual information to describe state expenditures, including text, photos, graphics, videos, and live data visualizations.

    (iv) To provide a simple to-edit client management area to support state employees’ ability to edit and make changes to the application without incurring custom development fees.

    (v) To provide full technical support, including customer service staff during working hours.

    (vi) To be accessible and comply with all applicable state and federal laws, including website accessibility requirements and the Americans with Disabilities Act.

    SECTION 4. APPROPRIATION; TAXPAYER RECEIPT

    [DOLLAR AMOUNT] in the fiscal year [YEAR] is authorized to be appropriated from the general fund to the Department to develop and publish the taxpayer receipt.  Thereafter, [such sums as shall be necessary] are authorized to be appropriated to carry out these provisions.

    EFFECTIVE DATE. This Act shall be effective for taxable years beginning after [DATE].