Could a city employee with access to Board records use an actual taxpayer's name, address, codes, receipts, and tax figures in handouts for presentations to other cities?

Plain-English summary

A city revenue technician used an actual taxpayer's name, address, district and tax codes, gross receipts, and tax information on sample-return handouts for local-tax presentations to other cities.

The Board concluded that this violated Revenue and Taxation Code section 7056. Access obtained as a city employee could be used only for the authorized governmental functions of that city; presentations to other entities were not such a use.

The presenter was directed to stop using actual taxpayer information and substitute fictitious names, codes, and tax numbers.

Common questions

Could actual taxpayer data be used merely as a teaching example?

No.

Did city access authorize presentations to other cities?

No.

What did the Board require instead?

Fictitious names, codes, and tax numbers.

Citations and references

• California Revenue and Taxation Code section 7056(a), (b) — taxpayer-data disclosure and city governmental-use restrictions applied

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/180-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/180-7000.pdf

Original ruling text

180.7000

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION
LEGAL DIVISION (MIC:82)

MEMBER
First District

450 N STREET, SACRAMENTO, CALIFORNIA
(P.O. BOX 942879, SACRAMENTO, CALIFORNIA 94279-0001)
(916) 324-3828

BRAD SHERMAN
Second District, Los Angeles
ERNEST J. DRONENBURG, JR.
Third District, San Diego
MATTHEW K. FONG
Fourth District, Los Angeles
GRAY DAVIS
Controller, Sacramento
────────

June 14, 1994

BURTON W. OLIVER
Executive Director

Mr. D--- M--Revenue Technician
City of --- --XXXX --- Boulevard
--- ---, California XXXXX-XXXX
Re:

[No Permit Number]
Use of Confidential Taxpayer
Information

Dear Mr. M---:
I understand that you are employed by the City of --- ---, but also work for [M] on an independent-contractor basis. Apparently you make presentations to various cities on matters involving the Bradley-Burns Uniform Local Sales and Use Tax. It has come to our attention that, as part of your talk, you issue a number of handouts. One consists of a sample sales tax return (copy attached). We note that on it you use the name and street address of an actual taxpayer. You also use its district and tax codes and gross receipts and tax information. Revenue and Taxation Code Section 7056 prohibits the release of taxpayer information by any person who obtains access to information contained in, or derived from, Board records under the provisions of that statute to anyone, except and under the conditions set forth in subdivision (b). My information is that you have access to Board records under that sub-division as an employee of the City of --- ---. Under this statute, it is illegal for you to divulge the information so obtained to anyone for any purpose other than the governmental functions of the City of --- ---. We conclude that giving talks to entities other than the City of --- --- is not such a use.

Mr. D--- M---

-2-

June 14, 1994
180.7000

We are of the opinion that your use of actual taxpayer facts under these circumstances is a violation of Section 7056(a). We therefore request that you stop using actual taxpayer information on your handouts and instead use fictitious names, codes, and tax numbers. Sincerely,

John L. Waid
Tax Counsel
JLW:es
Attach.
cc:

Mr. Larry Augusta
Mr. Larry Micheli (MIC:27)