SB1464

THE CONTEXT: DOR cannot retroactively apply any newly enacted law retroactively or in a way which would penalize a taxpayer in compliance with previous law unless it is authorized by law.

WHAT THE BILL DID: The final vetoed version would require DOR, and allows affected taxpayers, to notify the chairpersons of the Senate Finance committee, House Ways and Means committee or their successor committees if a newly proposed interpretation or application of any provision of Title 42 or 43 will adversely affect taxpayers prospectively, before the adoption of a new interpretation or application and require DOR to testify regarding the reasons why the new interpretation or application is necessary if the chairpersons of the Senate Finance committee, House Ways and Means committee or their successor committees hold a hearing on the new interpretation's or application's impact on taxpayers.

WHY IT MATTERED: The practical reason for this bill was to turn the Legislature's standard for tax laws into an enforceable rule. It would require DOR, and allows affected taxpayers, to notify the chairpersons of the Senate Finance committee, House Ways and Means committee or their successor committees if a newly proposed interpretation or application of any provision of Title 42 or 43 will adversely affect taxpayers prospectively, before the adoption of a new interpretation or application, and would also require DOR to testify regarding the reasons why the new interpretation or application is necessary if the chairpersons of the Senate Finance committee, House Ways and Means committee or their successor committees hold a hearing on the new interpretation's or application's impact on taxpayers, rather than leave the current rule unchanged.