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IA HSB14
SB
Status
1/15/2025
Primary Sponsor
Judiciary
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AI Summary
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Prevailing taxpayers in administrative hearings or court proceedings related to tax determination, collection, or refunds must be awarded reasonable costs by the Department of Revenue or court
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Recoverable costs include court costs, expert witness fees, studies/engineering reports/tests/analyses, and fees for independent attorneys or accountants (including fees for pursuing cost recovery)
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Eliminates the current $25,000 cap on costs recoverable by taxpayers in tax disputes
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Shifts the burden of proof to the Department of Revenue to prove its position was substantially justified once a taxpayer substantially prevails on the amount in controversy or significant issues
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If the Department proves its position was substantially justified, the taxpayer cannot recover costs; under current law, taxpayers must prove the Department's position was not justified to recover any costs
Legislative Description
A bill for an act relating to awarding the costs in administrative hearings or court proceedings involving the collection of tax, penalties, and interest by the department of revenue.(See HF 773.)
Last Action
Committee report approving bill, renumbered as HF 773.
3/5/2025