Utah commission allows tax information sharing for unclaimed property efforts

On February 14, 2025, the Utah House of Representatives introduced H.B. 506, a legislative bill aimed at amending the state's unclaimed property laws. The bill seeks to enhance the efficiency of returning unclaimed property to its rightful owners by allowing the unclaimed property administrator access to specific taxpayer information under certain conditions.

Key provisions of H.B. 506 include the stipulation that the Department of Workforce Services may request taxpayer information from the commission, provided that the commission has received the necessary information release as outlined in Section 35A-9-604. Additionally, the bill permits the unclaimed property administrator to access names, addresses, contact details, and social security numbers from tax returns, strictly for the purpose of facilitating the return of unclaimed property. Importantly, the unclaimed property administrator is bound by confidentiality provisions regarding any information obtained.

The bill also allows for the disclosure of individual income tax information to the Utah Fits All Scholarship Program, contingent upon taxpayer consent. This provision aims to streamline processes related to scholarship eligibility and funding.

Debate surrounding H.B. 506 has focused on privacy concerns, particularly regarding the sharing of sensitive taxpayer information. Opponents argue that the bill could lead to potential misuse of personal data, while supporters emphasize the importance of efficiently reuniting individuals with their unclaimed property.

The implications of H.B. 506 are significant, as it addresses the growing issue of unclaimed property in Utah, which has seen an increase in recent years. By potentially expediting the return process, the bill could have positive economic effects for residents who may be unaware of their unclaimed assets. However, the balance between efficiency and privacy remains a critical point of contention.

As the legislative process unfolds, stakeholders will be closely monitoring discussions and potential amendments to H.B. 506, which could shape the future of unclaimed property management in Utah. The bill's progress will be indicative of the state's approach to balancing transparency and privacy in government operations.