HomeMy WebLinkAboutFI12-248 - Original - Department of Revenue - Sharing of Financial Information - 10/08/2012 DOR Contract No._
AGENCY DATA SHARING AGREEMENT
I. Parties and Contact Information
State of Washington City of Kent
Department of Revenue
Mailing PO Box 47478 220 Fourth Avenue South
Address Olympia, WA 98504-7478 Kent, WA 98032
Delivery 6500 Linderson Way SW, Ste 102 220 Fourth Avenue South
Address Tumwater, WA 98501 Kent, WA 98032
Contract Ethan Sattelberg Robert A. Goehrmg, CFE,CPA
Manager: Phone:(360) 705-6648 Phone (253) 856-5262
FAX: (360) 705-6655
E-Mail: EthanS@dor.wa go v FAX: (253) 856-6255
E-Mail: rgoehring@kentwa.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) or (3)(h), as
applicable, and r,. a..stGt to , , .a,.,,,.,,.,, G1.1-9,.ing to ether- G-+„t sh e m th 90R]
Nothing in this Agreement requires either party to share requested information of any kind or
for any purpose.
III. Attachments
This Agreement includes the following attachments, which are to be considered part of this
Agreement for all purposes:
Exhibit A Secrecy Clause Affidavit
Exhibit B Additional Terms
IV. Information Types
AGENCY DATA SHARING AGREEMENT Page 1
DOR Contract No.
The stand-alone term "Information," when capitalized, is used throughout this Agreement to
mean all types of information identified below, collectively.
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 RCW 42.56, 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).
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.
V. Reauesting, 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 Secrecy Clause 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
Information to any person or party without a signed Secrecy Clause 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.
AGENCY DATA SHARING AGREEMENT Page 2
DO Contract No._
Vill. 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
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
AGENCY DATA SHARING AGREEMENT Page 3
DOR Contract No.
provisions has occurred. Nothing in this Agreement relieves either party of any
additional notice obligations under RCW 42.56.590.
B. Indemnification. The [city/county] 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.
XI. 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
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
AGENCY DATA SHARING AGREEMENT Page 4
DOR Contract No.
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. Additional Terms
Additional terms, if any, regarding specific content, frequency of data exchange, or other issues
are identified in Exhibit B In the event of any conflict between the terms of this Agreement
and those in Exhibit B, the terms of Exhibit B shall control.
XVII. 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.
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 VIILA, VIII.B, and X.B.
AGENCY DATA SHARING AGREEMENT Page 5
DOR Contract No
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 City of Kent
Department of Revenue
Vikki Smith (bate) Sign ur ) a A
Deputy Director
Suzette Cooke
(Print Name)
TEMPLATE APPROVED AS TO FORM ONLY
Mayor
On file (Title)
Assistant Attorney General
AGENCY DATA SHARING AGREEMENT Page 6
i
V/2 ,Su4 or Wasidn oar
REVENUE DV'"'"°"i°f' DEPARTMENT OF REVENUE j
�"0 SECRECY CLAUSE AFFIDAVIT
State of Washington
County of
1. ,having been duly sworn,say that I have read the following and understand the
requirements thereunder. I further understand that returns and tax information are privileged,and accordingly may not be disclosed to any individual
or group of individuals who are not employees of the department of revenue other than those specified in RCW 92,32.330(3)(a)through(m)and
(4)(a),and in these situations,only in accordance with written departmental policies and procedures I further understand the only information that is
not considered privileged and confidential under the statute is a taxpayer's name,business address,mailing address,revenue registration or Unifico
Business Identifier number,standard industrial classification code,dates of opening and closing of business,and business entity,when not associalled
with other tax information *h
Dated:
(Sgiiaarn
SUBSCRIBED AND SWORN TO before me this day of. 19
(Sipuniro of NoLmy Public)
My appointment expire
i
Ile attention of each employee of the department of revenue is directed to RCW 82.32.330("Secrecy Clause")
RCW 82.32.330 Disclosure of return or tax information. (d)"State agency"means every Washington dale of loe,department,
(Effective January 1,1997.) division,bureau,board,commission,orother state agency,
(t)For purposes of this section: (e) "Taxpayer identity"means the taxpayers name,address,
(a) "Disclose"means to make Mown to any person in any manner telephone number,registration number,or any combination
whatever a return or tax information; thereof,or any other information disclosing the identity of the
(b)"Return"means a tax or information return or claim for refund taxpayer;and
required by,or provided for or permitted under,the laws of this (f) "Department"means the department of revenue or its officer,
state which is filed with the department of revenue by,on behalf agent,employee,or representative.
of,or with respect to a person,and any amendment or supplement (2)Retum and tax information shall be confidential and privileged,and
thereto,including supporting schedules,attachments,or lists that except w authorized by this section,neither the department of
are supplemental to,or part of;the return so filed; revenue nor any other person may disclose any return or tax
(c) "Tax information"means(i)a taxpayers identity,(ii)the nature, information.
source,or amount of the taxpayers income,payments,receipts, (3)The foregoing,however,shall not prohibit the department of revenue
deductions,exemptions,credits,assets,liabilities,net worth,tax from:
liability deficiegcies,overassessments,or tax payments,whether (a)Disclosing such return or tax information in a civil or criminal
taken from the taxpayers books and records or any other source, judicial proceeding or an administrative proceeding: (i)In respect i
(iii)whether the taxpayers return was,is beicL or will be of any tax imposed under the laws of this state if the taxpayer qr
examined or subject to other investigation or processing, its officer or other person liable wider Title 82 RCW is a party in
(iv)a part of a written determination that is not designated as a the proceeding;or(ii)in which the taxpayer about wham such
precedent and disclosed pursuant to RCW 82.32A10,or a return or tax information is sought and another state agency are
background file document relating to a written determination,and adverse parties in the proceeding,
(v)other data received by,recorded by,prepared by,famished to, (b) Disclosing,subject to such requirements and conditions as the
or collected by the department of revenue with respect to the director shall prescribe by rules adopted pursuant to chapter 34.05
determination of the existence,or possible existence,of liability. RCW,such return or tax information regarding a taxpayer to such
or the amount thereof,of a person under the laws of this state for taxpayer or to such person or persons as that taxpayer may
a tax,penalty,interest,fine,forfeiture,or other imposition,or designate in it request for,or consent to,such disclosure,or to any
offense: PROVIDED,That data,material,or documents that do other person,at the tmpayer's request,to the extent necessary to
not disclose information related to a specific or identifiable comply with a request for information or assistance made by the
taxpayer do not constitute tax information under this section. taxpayer to such other person: PROVIDED,That tax information,
Except as provided by RCW 82.32.410,nothing in this chapter not received from the taxpayer shall not be so disclosed if the
shall require any person possessing data,material,or documents director determines that such disclosure would compromise any
made confidential and privileged by this section to delete investigation or litigation by any federal,state,or local
information from such data,material,or documents so as to government agency in connection with the civil or criminal
permit its disclosure; liability of the taxpayer or another person,or that such disclosure
REV 22 0002-1(1.17-M would identity a confidential innfamsnt,or that such disclosure is
contrary to any agreement entered into by the depertnunt that (4)(a)The department may disclose return or taxpayer information to a
provides for the reciprocal exchange of information with other person under investigation or during any court or administrative
government agencies which agreement requires confidentiality proceeding against a person under investigation as provided in
with respect to such information unless such information is this subsection(4). The disclosure must be in connection with the
required to be disclosed to the taxpayer by the order of any court; department's official duties relating to an audit,collection activity,
(c)Disclosing the name of a taxpayer wi-tli a deficiency greater than or a civil or criminal investigation. The disclosure may occur only
five thousand dollars and against whom a warrant under when the person under investigation and the person in possession
RCW 82.32.210 has been either issued or filed and remains of data,materials,or documents are parties to the return or tax
outstanding for a period of at least ten working days. The information to be disclosed. The department may disclose return
department shall not be required to disclose any information or tax information such as invoices,contracts,bills,statements,
under this subsection if a taxpayer: (i)Has been issued a tax resale or exemption certificates,or checks. However,the
assessment;(ih)has been issued a warrant that has not been filed; department may not disclose general ledgers,sales or cash receipt
and(iii)has entered a deferred payment arrangement with the journals,check registers,accounts receivablelpayable ledgers,
department of revenue and is making payments upon such general journals,financial statements,expeWs work papers,
deficiency that will finlly satisfy the indebtedness within twelve income tax returns,state tax returns,tax return work papers,or
months; other similar data,materials,or documents,
(d)Disclosing the name of a taxpayer with a deficiency greater than (b)Before disclosure of any tax return or tax information under Otis
five thousand dollars and against whom a warrant under subsection(41 the department shall,through written
RCW 92.32.210 has been filed With a court of record and remains correspondence,inform the person in possession of the data,
outstanding; materials,or documents to be disclosed The correspondence
(e)Publishing statistics so classified as to prevent the identification shall clearly identity the data,materials,or documents to be
of particular returns or reports,or items thereof, disclosed. The department may not disclose any tax return or tax
(f) Disclosing such return or tax information,for official purposes information under this subsection(4)until the time period
only,to the governor or attorney general,or to any state agency,or allowed in(c)of this subsection has expired or until the court has
to any committee or subcommittee of the legislature dealing with ruled on any challenge brought under(c)of this subsection.
matters of taxation,revenue,trade,commerce,the control of (c)The person in possession of the data,materials,or documents to
industry or the professions; be disclosed by the department has twenty days from the receipt
(g)Permitting the department of revenue's records to be audited and of the written request required under(b)of this subsection to
examined by the proper state officer,his or her agents and petition the superior court of the county in which the petitioner
employees; resides for injunctive relief, The cant shall limit or deny the
(h)Disclosing any such return-or tax information to a peace officer as request of the department if the court determines that (i)The
defined in RCW 9A.04.110 or county prosecuting attorney,for data,materials,or documents sought for disclosure are cumulative
official purposes. The disclosure may be made only in response to or duplicative,or are obtainable from some other source that is
a search warrant,subpoena,or other court order,unless the more convenient,less burdensome,or less expensive;(ii)The
disclosure is for the purpose of criminal tax enforcement. A peace production of the data,materials,or documents sought would be
officer or county prosecuting attorney who receives the return or unduly burdensome or expensive,taking into account the needs of
tax information may disclose that return or tax information only the department,the amount in controversy,limitations on the
for use in the investigation and a related court proceeding,or in petitioner's resources,and the importance of the issues at stake;or
the court proceeding for which the return or tax information' (iii)The data,materials,or documents sought for disclosure
originally was sought; contain trade secret information that,if disclosed,could harm the
(i) Disclosing any such return or tax information to the proper officer petitioner.
of the internal revenue service of the United States,the Canadian (d)The department shall reimburse reasonable expenses for the
government or provincial governments of Canada,or to the proper production of doh,materials,or documents incurred by the person
officer of the tax department of any state or city or town or county, in possession of the data,materials,or documents to be disclosed
for official purposes,but only if the statutes of the United States, (e)Requesting information under(b)of this subsection that may
Canada or its provincial governments,or of such other state or city indicate that a taxpayer is under investigation does not constitute
or town or county,as the case may be,grants substantially similar a disclosure of tax return or tax information under this section.
privileges to the proper officers of Us state; (5)Any person acquiring knowledge of any return or tax information in
(j) Disclosing any such return or tax information to the Department to course of his or her employment with the department of revenue
of Justice,the Bureau of Alcohol.Tobacco and lruearms of the and any person acquhing knowledge of any return or tax informatics
Department of the Treasury,the Department of Defense,the as provided under subsection(3x(),(gj,(h),(i),or 0)of this section,
United States Customs Service,the Coast Cluard of the United who discloses any such return or tax Wataation to another person
States,and the United States Department of Transportation,or not entitled to knowledge of such return or tax information wider the
any authorized representative thereof,for official purposes; provisions of this section,is guilty of a misdemeanor. If the peaon
(k)Publishing or otherwise disclosing the text of a written guilty of such violation is an oirxr or employee of the state,such
determination designated by the director as a precedent purawist person shall forfeit such office or employment and shall be incapable
to RCW 82.32.4 tO; of holding any public office or employment in this state for a period of
(1) Disclosing,in a manner that is trot associated with other tax two years thereafter. 11996 c 184 f 5;1995 c 197 0 l;1991 c 3301 1
information,the taxpayer name,entity type,business address, 1;1990 c 67 4 1;1985 c 414§9,1984 c 138¢12; 1969 ex.s.c 104 S
mailing address,revenue tax registration numbers,standard 1;1963 ex s.c 28 4 10; 1961 c lS f 82.32.330. Prior. 1943 c 156
industrial classification code of taxpayer,and the dates of ¢12;193S c 180¢21%Rem.Supp.1943 ii 8370-210.1
opening and closing of business. This subsection shall not be
construed as giving sutboity to the department to give,sell,or
owIt
provide access to any list of taxpayers for any commercial To atf r theeib Aist the y im ai�Jy rites eguage rt a ter efEnglis
purpose-,or jormatjar the vtsuatly 7mpalred w a Language other than English,
(can) Disclosing such return or tax information that is also maintained please aril(360) 75J-l117. Teletype an)user may cart
by another Washington state or local governmental agency as a (800)451-7985. You may also accen tax b(/ornratlon on our
public record available for inspection and copying under the Internet home page at http://www.m.govldonivador-h.ft
provisions of chapter 42.17 RCW or is a document maintained by RSV 22 Dp02-2(1-17-97)
a court of record not otherwise prohibited from disclosure.
DOR Contract No.
Exhibit B
Additional Terms
AGENCY DATA SHARING AGREEMENT
I. Scope
DOR will:
• Provide technical assistance to the (other party) in the ongoing link up with the
(Tandem/Business Licensing Service) automated database.
• Supply the (other party) with a procedures manual in how to access the
(Tandem/Business Licensing Service) automated records.
• Maintain and update the (Tandem/Business Licensing Service) database to the best of
its ability. DOR will not be responsible for system down time or for any other delay to
the receipt of information sought by the (other party), or for errors in the compilation of
such information.
• Make the automated (Tandem/Business Licensing Service) information available from
8:00 AM to 5:00 PM Pacific time Monday through Friday, except for state approved
holidays and during system down time.
(Other party) will.
• Obtain, maintain, and repair, at no cost to DOR, the computer and computer-related
equipment and software that (other party) will use to obtain (Tandem/Business
Licensing Servic)e automated records.
• Assume full responsibility for the selection and use of the equipment and software
selected by (other party) and for all aspects of the performance of that equipment.
AGENCY DATA SHARING AGREEMENT Page 1
\ REQUEST FOR MAYOR'S SIGNATURE
v KtNT Please Flii in All Applicable Boxes
._r T"�
Routing Information (ALL REQUESTS MUST FIRST BE ROUTED THROUGH THE LAW DEPARTMENT)
Originator: Robert Goehrin , CFE, CPA Phone (Originator): 5262
Date Sent: September 26 2012 Date Required: Sooner rather than later
Return Signed Document to: Originator CONTRACT TERMINATION DATE: N/A
VENDOR NAME: DATE OF COUNCIL APPROVAL: N/A
State of Washington Department of
Revenue
Brief Explanation of Document:
This agreement authorizes the Department of Revenue to provide certain financial
information at the individual business level to authorized City of Kent personnel and
officials for tax enforcement and other authorized official purposes.
This agreement would supersede the Agreement for Sharing Revenue Information
executed in May 1996. The City has used this agreement as a valuable tool for
monitoring sales/use, lodging and brokered natural gas utility taxes and securing
significant recoveries (as well as those associated with evaluation of SST Mitigation
calculations). The new agreement would further extend access to confidential state
business and occupation tax information.
All Contracts Must Be Routed Through The Law Department
(This area to be completed by the Law Department)
Received:
Approval of Law Dept.: SLED 9 7 2012
i 7, , CtIVED
Law Dept. Comments: �„ �,('{ O 1'( u/
KENT B A nF:P-r
Date Forwarded to Mayor:
Shaded Areas To Be Completed By Administration Staff pf the Il��0,
Received:
Recommendations and Comments:
Disposition:
Cln CLr�>t
Date Returned:
/ J/ E
t