AZ SB1242

Amends Arizona Revised Statutes section 42-2003 to clarify that third-party contractors working under contract with counties, cities, or towns may receive confidential tax information for audit purposes.

Defines "third party" as a private enterprise contracted by a county, city or town to analyze data on behalf of that jurisdiction.

Requires third-party contractors receiving tax information to comply with the same confidentiality standards as the county, city or town, with violations resulting in immediate suspension of information access rights.

Makes the county, city or town responsible for ensuring confidentiality of released information, not the Department of Revenue.

Effective date: June 30, 2018.