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HomeMy WebLinkAbout14-110 - WA State Department of Revenue - Data Sharing AgreementAGENCY DATA SHARING AGREEMENT DOR Contract No. _ 14 -110 Council Approval NIA I. Parties and Contact Information Mailing Address State of Washington Department of Revenue PO Box 47478 Olympia, WA 98504 -7478 City of Tukwila Finance Department 6200 Southcenter Blvd Tukwila, WA 98188 -2544 Delivery 6500 Linderson Way SW, Ste 102 6200 Southcenter Blvd Address Tumwater, WA 98501 Tukwila, WA 98188 -2544 Contract Manager: Sandra Yuen Phone: (360) 705 -6620 FAX: (360) 705 -6655 E -Mail: SandraY @dor.wa.gov Peggy McCarthy, Finance Director Phone: (206) 433 -1838 FAX: (206) 433 -1833 E -Mail: Peggy.McCarthy @TukwilaWA.gov II. Purpose and Authority The purpose of this Data Sharing Agreement ( "Agreement ") is to establish the terms under which the parties may voluntarily share information of the types identified below for tax enforcement and other official purposes pursuant to RCW 82.32.330(3)(e). Nothing in this Agreement requires either party to share requested information of any kind or for any purpose. III. Attachment This Agreement includes the following attachment, which is to be considered part of this Agreement for all purposes: Exhibit A Tax and License Confidentiality Affidavit IV. Information Types The stand -alone term "Information," when capitalized, is used throughout this Agreement to mean all types of information identified below, collectively. AGENCY DATA SHARING AGREEMENT \i- Pagel DOR Contract No. A. "Non- confidential Information ": Any information which may legally be shared with the public without restriction. B. _"Confidential Information": Any information, except Confidential Tax Information, that may legally be shared between the parties and is personal or proprietary in nature, or is exempt from public disclosure under Chapter 42.56 RCW, or other state or federal law. "Confidential Information" includes, but is not limited to, Personal Information as defined in RCW 42.56.230 and RCW 42.56.590(5). For purposes of this agreement, Confidential Information is limited to taxpayers located within your jurisdiction or those who conduct business within your jurisdiction. The Department will, to the best of its ability, use the mailing address, physical location, or reported retail sales activity to identify the taxpayers. C. "Confidential Tax Information ": Any information identifiable to a specific taxpayer protected by RCW 82.32.330, including, but not limited to, a taxpayer's identity, income, assets, liabilities, tax payments, or actual or possible tax liabilities. Confidential Tax Information protected by RCW 82.32.330 is classified as, at least, Category 3 data under Washington's OCIO Standards No. 141.10. For purposes of this agreement, Confidential Tax Information is limited to taxpayers located within your jurisdiction or those who conduct business within your jurisdiction. The Department will, to the best of its ability, use the mailing address, physical location, or reported retail sales activity to identify the taxpayers. V. Requesting, Receiving, and Accessing Information The requesting party is responsible for ensuring that only persons authorized under this section are able to request, receive, and access each type of Information from the other party. A. Non- confidential Information: Any employee or agent authorized by the receiving party may request, receive, and access Non - confidential Information. B. Confidential Information: Any employee or agent authorized by the receiving party may request, receive, and access Confidential Information. C. Confidential Tax Information: Only employees who have been authorized by the receiving party and have signed the Tax and License Confidentiality Affidavit, attached at Exhibit A, may request, receive, and access Confidential Tax Information. D. Authorization: Each Contract Manager will provide the other party with a regularly updated list of persons authorized to request, receive, and access Confidential Information and Confidential Tax Information. DOR will not disclose Confidential Tax AGENCY DATA SHARING AGREEMENT Page 2 DOR Contract No. Information to any person or party without a signed Tax and License Confidentiality Affidavit. VI. Information Format Each party will make good faith efforts to accommodate format preferences of the other party (e.g., hard copy, electronic data, CD ROM, secure file transfer, etc.), but nothing in this Agreement requires either party to provide Information in any particular format. VII. Permitted Uses Information received under this Agreement may be used for official purposes only. VIII. Confidentiality and Security of Confidential Information and Confidential Tax Information A. Confidentiality: Each party agrees for itself, its employees, and agents to keep confidential and secure from unauthorized use, access, or disclosure all Confidential Information and Confidential Tax Information received under this Agreement. B. Ensuring Security: Each party must establish and implement physical, electronic, and managerial policies, procedures, and safeguards to ensure the security of all Confidential Information or Confidential Tax Information received under this Agreement. C. Electronic Security: Each party's electronic security policies, procedures, and safeguards must be at least as stringent as those set forth in the Washington Office of the Chief Information Officer Policy No. 141 and Standard No. 141.10, as amended from time to time, and herein incorporated by reference. D. Proof of Security. Each party reserves the right to monitor, audit, or investigate the use of Confidential Information and Confidential Tax Information and the adequacy of security measures taken to protect such Information. Each party agrees to provide information or proof of its security policies, procedures, and safeguards upon reasonable request of the other party. IX. Limits and Requirements for Disclosure A. Disclosure to Non - Parties: Confidential Tax Information shall not be disclosed to non- parties, unless such disclosure is expressly permitted by RCW 82.32.330. Neither party may disclose Confidential Information received under this Agreement to non - parties except: 1) as permitted by RCW 42.56, 2) as required by judicial proceeding, or 3) as expressly authorized by the other party in writing or in this Agreement. AGENCY DATA SHARING AGREEMENT Page 3 DOR Contract No. _ B. Notice of Disclosure to Non - Parties: Before Confidential Information received under this Agreement may be disclosed to any non -party, the disclosing party must provide timely written notice at least two weeks before disclosure to allow the other party to seek a court order enjoining disclosure, if necessary. X. Unauthorized Use or Disclosure If Information received by a party under this Agreement is used, accessed, or disclosed in violation of this Agreement, including use, access, or disclosure by a non -party, the following terms apply: A. Notification. A party must notify the other in writing as soon as practicable, but no later than three working days, after determining a material violation of the disclosure or use provisions has occurred. Nothing in this Agreement relieves either party of any additional notice obligations under RCW 42.56.590. B. Indemnification. The City of Tukwila shall, to the extent allowed by law, indemnify and hold the Department harmless from any loss or damages, including consequential damages such as public relations costs, arising out of the use, access, or disclosure of Information in violation of this Agreement. C. Disclosure by Other Party. A party's obligations under Section X.B. do not apply to the extent that any use, access, or disclosure of Information in violation of this Agreement was through the fault of the other party. XL Ownership and Retention of Information Records and other documents, in any medium, furnished by one party to the other will remain the property of the furnishing party absent a written agreement to the contrary. The parties agree that except as provided in Section XII, below, a party receiving Information under this Agreement may retain the Information in accordance with the receiving party's electronic information and document retention policies, as applicable. XII. Return or Destruction of Confidential Information and Confidential Tax Information A. Return or Destruction for Violation: A party may, at any time, require the return or destruction of all Confidential Information or Confidential Tax Information provided to the other party during the term of this Agreement if Confidential Information or Confidential Tax Information in the possession of the receiving party has been disclosed, accessed, or used, or is at substantial risk of disclosure, access, or use, in violation of the terms of this Agreement. B. Request for Return or Destruction. Any request for return or destruction of Information must be in writing and provide a reasonable time for compliance. A party AGENCY DATA SHARING AGREEMENT Page 4 DOR Contract No. may request certification in writing that all copies of the Information have been returned or destroyed. XIII. Not a Service Agreement Neither party is obligated to provide services or is entitled to compensation under this Agreement. XIV. Term and Termination This Agreement is effective on the date of the last signature of the parties and will remain in effect for five (5) years. The parties may enter into five (5) year extensions thereafter. Either party may terminate this Agreement at any time for any reason on fifteen (15) days written notice to the other party. XV. Mediation and Arbitration The parties may resolve any dispute according to the specific dispute resolution provisions of this Agreement or by any other informal means. The parties agree to participate in good faith mediation to resolve any disputes relating to this Agreement that are not otherwise resolved prior to any action in court. At any time, either party may initiate formal mediation by providing written request to the other party setting forth a brief description of the dispute and a proposed mediator. If the parties cannot agree upon a mediator within ten (10) Working Days after receipt of the written request for mediation, the parties shall use a mediation service that selects the mediator for the parties. Each party shall be responsible for one -half of the mediation fees, if any, and its own costs and attorneys' fees. Nothing in this Agreement shall be construed to limit the parties' choice of a mutually acceptable alternative resolution method, such as a dispute hearing, dispute resolution board, or arbitration. XVI. Miscellaneous Terms A. Governing Law and Venue. This Agreement shall be governed by the laws of the State of Washington. Any action arising out of this Agreement must be commenced in Thurston County, Washington. B. Interpretation. This Agreement shall be interpreted to the extent possible in a manner consistent with all applicable laws and not strictly for or against either party. C. Severability. If any term of this Agreement shall be finally adjudicated by a court of competent jurisdiction to be unenforceable, the remainder of this Agreement will remain in full force and effect. AGENCY DATA SHARING AGREEMENT Page 5 DOR Contract No. D. Survival. Terms of this Agreement, which by their nature would continue beyond termination, will survive termination of this Agreement for any reason, including without limitation, terms in Sections VIII.A, VIII.B, and X.B. E. No Waiver. The failure of either party to enforce any term in any one or more instance will not be construed as a waiver of a future right to insist upon strict performance of the term. F. No third party beneficiaries. This Agreement is for the benefit of the parties and their successors and may not be enforced by any non -party. G. Amendments. No amendment to this Agreement is enforceable unless made in writing signed by personnel authorized to bind the party against whom enforcement is sought. H. Notice. Any notice required by this Agreement is effective only if provided in writing to the Contract Manager designated in Section I. Notice by email is acceptable. I. Merger and integration. This Agreement contains all the terms and conditions agreed upon by the parties. No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any of the parties. J. Legislative Changes. The parties intend this Agreement to remain effective in the event of legislative change to authority cited above. The provisions of this Agreement shall be deemed to change in a manner that is consistent with any changes to cited authority, provided that the change is consistent with the manifest intent of this Agreement and does not conflict with any express provisions. Any such change to this Agreement shall be effective on the effective date of the change in authority. Signed in counterparts, effective as of the date of the final signature of the parties below: State of Washington Department of Revenue Vikki Smith Deputy Director (Date) TEMPLATE APPROVED AS TO FORM ONLY City of Tukwila, WA Mayor's Office (Jim Haggerton) On file (Mayor) Assistant Attorney General AGENCY DATA SHARING AGREEMENT Page 6 Department of Revenue �- \i/os rivon Slot!? Tax and License Confidentiality Affidavit EXC /SEC -- This-form- must-be- completed- and - signed-by- every- individual - (including- mayor— councilmember, treasurer- city - manager, etc.) with access to confidential tax or licensing information. An individual who discloses confidential information to an unauthorized person is guilty of a misdemeanor. See RCW 82.32.330(6) and 19.02.115(5) Acknowledgement of Confidentiality I employed by (Print name) swear or affirm that I have read and understand the requirements regarding the protection of tax and/or licensing information provided by the Department as stated in RCW 82.32.330 and 19.02.115. I further understand that this information is privileged and confidential, and therefore shall not be disclosed to any person not entitled to knowledge of such information. I understand that my use or disclosure of confidential tax information may be further restricted by an information - sharing agreement. Dated: (Signature) SUBSCRIBED AND SWORN TO before me this day of (Signature of Notary Public) Notary in and for the State of Residing at My commission expires Authorization - Authorization is given by someone other than the person being given access to information. I of (Print name and title) authorize who has a business need to access the following (Print name and title) from the Washington State Department of Revenue (check all that apply): ❑ Licensing Information ❑ Tax Information (Print jurisdiction) (Signature) REV 27 0056e (5/20/14) Taxpayer and licensing information reported to the Department of Revenue (Department) is confidential and only authorized individuals with a business need may view these records. In addition, the information may only be shared with individuals in your jurisdiction who have a signed Confidentiality Affidavit on file with the Department. Licensing Information RCW 19.02.115 http://apps.leg.wa.gov/RCW/default.aspx?cite=19.02.115 Licensing information that is collected and maintained through the Business Licensing Service (BLS) is confidential and may not be disclosed by any person unless and to the extent expressly authorized by statute, local law, or administrative rule. Licensing information is defined under RCW 19.02.115(1)(b) and includes, without limitation, all information included in any initial and renewal business license applications and business licenses under the BLS program. Tax Information RCW 82.32.330 http: / /apps.leg.wa.gov /RCW /default.aspx ?cite = 82.32.330 Tax information is information reported to the Department by a taxpayer, any Department actions with a taxpayer, or other data received by, recorded by, prepared by, furnished to, or collected by the Department with respect to any actions with the taxpayer. Tax information includes the taxpayer's identity, nature, source, or amount of the taxpayer's income, payments, credits, or tax payments. The following taxes are covered by this statute including but not limited to: • Business & Occupation Tax • Sales/Use Tax • Lodging taxes • Public Utility Tax • Brokered Natural Gas (BNG) • E -911 taxes • Real Estate Excise Tax (REET) • Leasehold Excise Tax Data Security Keep all data secure regardless of medium. ✓ Print only information you need ✓ Do not leave documents on printers ✓ Copy or download electronic data only as needed and save where only authorized persons can access ✓ Communication of confidential information via email, including attachments, is prohibited Determining Whether Information is Confidential Pages 3 and 5 of this form include examples demonstrating what is confidential, when information may be disclosed, and to whom it may be disclosed. Disclosure Penalty Any person acquiring knowledge of any licensing or tax information as provided under RCW 19.02.115 or 82.32.330 who discloses any such licensing or tax information to another person not entitled to knowledge of such information under the provisions of these statutes is guilty of a misdemeanor. Forms Submission & Questions Send your completed form to Patti Wilson, Local Government Liason at PattiW(ador.wa.gov. If you have questions contact by email or by calling (360) 534 -1543. REV 27 0056e (5/20/14) What types of tax or licensing information received from the Department are confidential? This table provides examples of when information your jurisdiction receives from the Department may or may not be shared with others. # Confidential Information Access Scenario Yes or No? 1. The Mayor asks if ABC Painting is reporting sales tax to your city. Yes, detailed information about a business's tax reporting is confidential. Even though the mayor didn't ask for actual dollar amounts, disclosing whether the business has reported or not is considered a disclosure. If the Mayor has a business need and submitted a signed Confidentiality Affidavit to the Department, the information may be shared. 2. A councilmember asks how much tax Jim's Plumbing has reported to your jurisdiction. Yes, detailed information regarding a business's tax reporting is confidential. If the councilmember has a business need and submitted a signed Confidentiality Affidavit to the Department, the information may be shared. 3. An employee of the fire department wants to know if Joe's Automotive indicated on their business license that they would be storing flammable or toxic materials. Yes, the information contained on the business application, including the city addendum, is confidential. If the employee of the fire department has a business need and submitted a signed Confidentiality Affidavit to the Department, the information may be shared. 4. The county's monthly local tax distribution amount is higher than normal due to reporting of one taxpayer. At a council meeting, the difference is discussed but no taxpayer name is disclosed. No, talking about the distribution amounts as a whole and even stating that it is due to one taxpayer's reporting is allowed as long as the taxpayer's name and the amount the taxpayer reported is not disclosed. The taxpayer's business activity (i.e. hotel) cannot be disclosed if there are less than three businesses with that activity in the jurisdiction. General public, city /county staff, media REV 27 0056e (5/20/14) # Scenario Confidential Information Yes or No? Access 5. The Treasurer asks whether a business is registered and if so what is their address? No, any information contained in the on -line Business Registration General public, city /county staff, media Lookup is considered public information. (http: / /do r.wa.gov /content /doin gbu s in es s /reg istennvbusiness /br d/) Information contained in the Department's on -line Business License Lookup is also considered public information. Outp://b1s.dor.wa.gov/LicenseS earch /) 6. Another jurisdiction contacts you to see if ABC Painting has reported sales tax to your jurisdiction. Yes, the information we send one jurisdiction may not be shared with another. The Department provides each jurisdiction the information they are entitled to receive based on how the taxpayer has reported on their Combined Excise Tax Return. The jurisdiction requesting the information should contact the Department to investigate the taxpayer's local tax coding. 7. A reporter contacts you to confirm the amount of tax reported by a taxpayer to your jurisdiction. The reporter got the figure from the business. Yes. Even though the reporter got the amount from the taxpayer, any confirmation by a local jurisdiction is considered a release of confidential information. REV 27 0056e (5/20/14) # Scenario Confidential Information Yes or No? Access 8. A Finance Director prepares a report for a council meeting showing the sales tax distributions 1__/ Depends on the number of taxpayers: Yes As a policy, DOR does not disclose information when If less than three - only the jurisdiction's employees or authorized individuals (mayor, councilperson, etc.) with a business need and a NAICS code. there are less than three taxpayers in a NAICS code. If there are less than three, the public or the taxpayers involved may be able to determine the income reported by the taxpayers. No If there are three or more taxpayers, there is no risk of disclosure. signed Confidentiality Affidavit on file may view the information. Three or more — general public, city /county staff, media. NOTE: a local jurisdiction may release taxpayer information if you provide the Department a Confidential Tax Information Authorization form (http: / /dor.wa.gov /Docs /forms /M.isc /27- 0055e.pdf) signed by the taxpayer. To inquire about this form in an alternate format, please call 1- 800 - 647 -7706. Teletype (TTY) users may use the Washington Relay Service by calling 711. REV 27 0056e (5/20/14)