Permits Division of Taxation to share certain tax data with New Jersey Innovation Authority and New Jersey Secure Choice Savings Board.

S4059

SENATE, No. 4059

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 23, 2026

Sponsored by:

Senator� ANDREW ZWICKER

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

SYNOPSIS

���� Permits Division of Taxation to share certain tax
data with New Jersey Innovation Authority and New Jersey Secure Choice Savings
Board.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning tax data sharing and amending R.S.54:50-8
and R.S.54:50-9.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� R.S.54:50-8 is amended
to read as follows:

���� 54:50-8.� a.� The records and
files of the director respecting the administration of the State Uniform Tax
Procedure Law or of any State tax law, or respecting the administration of the
Stay NJ property tax credit, the ANCHOR Property Tax Relief Program, and the
homestead property tax reimbursement program, shall be considered confidential
and privileged and neither the director nor any employee engaged in the
administration thereof or charged with the custody of any such records or
files, nor any former officer or employee, nor any person who may have secured
information therefrom under subsection d., e., f., g., p., q., r.,
[
or
]
s.
, t.,
u., or v.
of R.S.54:50-9 or any other provision of State law, shall
divulge, disclose, use for their own personal advantage, or examine for any
reason other than a reason necessitated by the performance of official duties
any information obtained from the said records or files or from any examination
or inspection of the premises or property of any person.� Neither the director
nor any employee engaged in such administration or charged with the custody of
any such records or files shall be required to produce any of them for the
inspection of any person or for use in any action or proceeding except when the
records or files or the facts shown thereby are directly involved in an action
or proceeding under the provisions of the State Uniform Tax Procedure Law or of
the State tax law affected, or where the determination of the action or
proceeding will affect the validity or amount of the claim of the State under
some State tax law, or in any lawful proceeding for the investigation and
prosecution of any violation of the criminal provisions of the State Uniform
Tax Procedure Law or of any State tax law.

���� b.��� The prohibitions of this
section, against unauthorized disclosure, use or examination by any present or
former officer or employee of this State or any other individual having custody
of such information obtained pursuant to the explicit authority of State law,
shall specifically include, without limitation, violations involving the
divulgence or examination of any information from or any copy of a federal
return or federal return information required by New Jersey law to be attached
to or included in any New Jersey return.� Any person violating this section by
divulging, disclosing or using information shall be guilty of a crime of the
fourth degree.� Any person violating this section by examining records or files
for any reason other than a reason necessitated by the performance of official
duties shall be guilty of a disorderly persons offense.

���� c.���� Whenever records and
files are used in connection with the prosecution of any person for violating
the provisions of this section by divulging, disclosing or using records or
files or examining records and files for any reason other than a reason necessitated
by the performance of official duties, the defendant shall be given access to
those records and files.� The court shall review such records and files in
camera, and that portion of the court record containing the records and files
shall be sealed by the court.

(cf: �P.L.2024, c.88, s.21)

���� 2.��� R.S.54:50-9 is amended
to read as follows:

���� 54:50-9.� Nothing herein
contained shall be construed to prevent:

���� a.���� The delivery to a
taxpayer or the taxpayer's duly authorized representative of a copy of any
report or any other paper filed by the taxpayer pursuant to the provisions of
this subtitle or of any such State tax law;

���� b.��� The publication of
statistics so classified as to prevent the identification of a particular
report and the items thereof;

���� c.���� The director, in the
director's discretion and subject to reasonable conditions imposed by the
director, from disclosing the name and address of any licensee under any State
tax law, unless expressly prohibited by such State tax law;

���� d.��� The inspection by the
Attorney General or other legal representative of this State of the reports or
files relating to the claim of any taxpayer who shall bring an action to review
or set aside any tax imposed under any State tax law or against whom an action
or proceeding has been instituted in accordance with the provisions thereof;

���� e.���� The examination of said
records and files by the Comptroller, State Auditor or State Commissioner of
Finance, or by their respective duly authorized agents;

���� f.���� The furnishing, at the
discretion of the director, of any information contained in tax reports or
returns or any audit thereof or the report of any investigation made with
respect thereto, filed pursuant to the tax laws, to the taxing officials of any
other state, the District of Columbia, the United States and the territories
thereof, providing said jurisdictions grant like privileges to this State and
providing such information is to be used for tax purposes only;

���� g.��� The furnishing, at the
discretion of the director, of any material information disclosed by the
records or files to any law enforcing authority of this State who shall be
charged with the investigation or prosecution of any violation of the criminal
provisions of this subtitle or of any State tax law;

���� h.��� The furnishing by the
director to the State agency responsible for administering the Child Support
Enforcement program pursuant to Title IV-D of the federal Social Security Act,
Pub.L.93-647 (42 U.S.C. s.651 et seq.), with the names, home addresses, social
security numbers and sources of income and assets of all absent parents who are
certified by that agency as being required to pay child support, upon request
by the State agency and pursuant to procedures and in a form prescribed by the
director;

���� i.���� The furnishing by the
director to the Board of Public Utilities any information contained in tax
information statements, reports or returns or any audit thereof or a report of
any investigation made with respect thereto, as may be necessary for the administration
of P.L.1991, c.184 (C.54:30A-18.6 et al.) and P.L.1997, c.162 (C.54:10A-5.25 et
al.);

���� j.���� The furnishing by the
director to the Director of the Division of Alcoholic Beverage Control in the
Department of Law and Public Safety any information contained in tax
information statements, reports or returns or any audit thereof or a report of
any investigation made with respect thereto, as may be relevant, in the
discretion of the director, in any proceeding conducted for the issuance,
suspension or revocation of any license authorized pursuant to Title 33 of the
Revised Statutes;

���� k.��� The inspection by the
Attorney General or other legal representative of this State of the reports or
files of any tobacco product manufacturer, as defined in section 2 of P.L.1999,
c.148 (C.52:4D-2), for any period in which that tobacco product manufacturer
was not or is not in compliance with subsection a. of section 3 of P.L.1999,
c.148 (C.52:4D-3), or of any licensed distributor as defined in section 102 of
P.L.1948, c.65 (C.54:40A-2), for the purpose of facilitating the administration
of the provisions of P.L.1999, c.148 (C.52:4D-1 et seq.);

���� l.���� The furnishing, at the
discretion of the director, of information as to whether a contractor or
subcontractor holds a valid business registration as defined in section 1 of
P.L.2001, c.134 (C.52:32-44);

���� m.�� The furnishing by the
director to a State agency as defined in section 1 of P.L.1995, c.158
(C.54:50-24) the names of licensees subject to suspension for non-payment of
State tax indebtedness pursuant to P.L.2004, c.58 (C.54:50-26.1 et al.);

���� n.��� The release to the
United States Department of the Treasury, Bureau of Financial Management
Service, or its successor of relevant taxpayer information for purposes of
implementing a reciprocal collection and offset of indebtedness agreement
entered into between the State of New Jersey and the federal government
pursuant to section 1 of P.L.2006, c.32 (C.54:49-12.7);

���� o.��� The examination of said
records and files by the Commissioner of Health and Senior Services, the
Commissioner of Human Services, the Medicaid Inspector General, or their
respective duly authorized agents, pursuant to section 5 of P.L.2007, c.217
(C.26:2H-18.60e), section 3 of P.L.1968, c.413 (C.30:4D-3), or section 5 of
P.L.2005, c.156 (C.30:4J-12);

���� p.��� The furnishing at the
discretion of the director of employer-provided wage and tax withholding
information contained in tax reports or returns filed pursuant to
N.J.S.54A:7-2, 54A:7-4 and 54A:7-7, to the designated municipal officer of a
municipality authorized to impose an employer payroll tax pursuant to the
provisions of Article 5 (Employer Payroll Tax) of the "Local Tax
Authorization Act," P.L.1970, c.326 (C.40:48C-14 et seq.), for the limited
purpose of verifying the payroll information reported by employers subject to
the employer payroll tax;

���� q.��� The furnishing by the
director to the Commissioner of Labor and Workforce Development of any
information, including, but not limited to, tax information statements,
reports, audit files, returns, or reports of any investigation for the purpose
of labor market research or assisting in investigations pursuant to any State
wage, benefit or tax law as enumerated in section 1 of P.L.2009, c.194
(C.34:1A-1.11); or pursuant to P.L.1940, c.153 (C.34:2-21.1 et seq.).

���� r.���� The furnishing by the
director to the New Jersey Economic Development Authority any information
contained in tax information statements, reports or returns, or any audit
thereof or a report of any investigation made with respect thereto, as may be
relevant to assist the authority in the implementation of programs through
which grants, loans, tax credits, or other forms of financial assistance are
provided.� The director shall provide to the New Jersey Economic Development
Authority, upon request, such information.

���� s.���� The furnishing by the
director to the Commissioner of Banking and Insurance of any information,
including, but not limited to, tax information statements, reports, audit
files, returns, or reports of any investigation for the purpose of assisting in
investigations pursuant to any insurance fraud investigation as enumerated in
P.L.1983, c.320 (C.17:33A-1 et seq.).

���� t.���� The furnishing by the
director to the Commissioner of Banking and Insurance or the Commissioner of
Human Services of any information contained in tax reports or returns for the
purpose of determining a taxpayer's eligibility for insurance affordability assistance,
the State Medicaid program, or the NJ FamilyCare Program and to otherwise
support minimum essential coverage outreach and enrollment efforts.

����
u.��� The furnishing by the
director to the New Jersey Innovation Authority of any information contained in
tax reports or returns for the purpose of supporting the Division of Taxation
in improving the customer experience of taxpayers and the public by evaluating
and improving taxation processes.

����
v.��� The furnishing by the
director to the New Jersey Secure Choice Savings Board of any information
contained in tax reports or returns that is necessary for the purposes of
P.L.2019, c.56 (C.43:23-13 et seq.).

(cf: �P.L.2022, c.39, s.10)

���� 3.��� This act shall take
effect immediately.

STATEMENT

���� This bill permits the Division
of Taxation in the Department of the Treasury to share tax data with both the
New Jersey Innovation Authority and the New Jersey Secure Choice Savings Board
for certain purposes.

���� Under current law, records and
files of the division that relate to the administration of State tax laws are
considered confidential and privileged, with their disclosure to third parties
generally prohibited.� In certain instances, however, the director is
authorized to furnish such records and files for specified purposes, including
to assist other State entities in the performance of their respective roles and
responsibilities.�

���� The bill authorizes the
division to furnish certain tax information to the New Jersey Innovation
Authority and the New Jersey Secure Choice Savings Board for certain specified
purposes.� The New Jersey Innovation Authority was established in, but not of,
the Department of the Treasury to promote the efficiency and modernization of
State government operations.� The New Jersey Secure Choice Savings Board was
established in, but not of, the Department of the Treasury to administer the
New Jersey Secure Choice Savings Program.� Also called the �Retire Ready NJ�
program, it provides certain private sector employees whose employers do not
offer retirement benefits with the option to participate in a State-sponsored
retirement plan and make contributions to various types of retirement accounts.

���� Under the bill, the Division
of Taxation would be authorized to release tax information, including any
information contained in tax reports and returns, to the New Jersey Innovation
Authority for use in supporting the division in improving the customer experience
of taxpayers and the public through the evaluation and improvement of taxation
processes.� Similarly, the bill also authorizes the division to release such
tax information to the New Jersey Secure Choice Savings Board necessary for the
purposes of administering the New Jersey Secure Choice Savings Program.