Taxpayer Protection Act Exposed

The Taxpayer Protection Act was adopted by ALEC's Tax and Fiscal Policy Task Force at the Annual Meeting on August 20, 1998, approved by the full Board of Directors August, 1998. According to ALEC.org, the Act was re-approved by the Board of Directors on January 29, 2013. (Accessed on 1/28/2016).

CMD's Bill Summary

This Act is, in essence, saying "We don't want to have any incentives to push the government to carefully apply tax law." This clearly makes it less likely that tax cheats will be audited. This is a curiously small and narrow bill to get the title "Taxpayer Protection Act," a title which has been used for many anti-tax measures at the national and state levels.

ALEC Bill Text

Summary

This act prohibits the Revenue department of a state from basing any employee's compensation, promotion or evaluation on collections or assessments. The act further prohibits the department from entering into any contract with an outside collection service which bases the vendors compensation on revenue collected.

Model Legislation

{Title, enacting clause, etc.}

Section 1. {Title.}

This Act shall be known and may be cited as The Taxpayer Protection Act

Section 2. {Statement of purpose}

It is the intent of the legislature to prohibit the [cite appropriate revenue agency] from compensating, promoting, evaluating or otherwise reward and employee based on collections or assessments. It is also the intent of the legislature to prohibit the [cite appropriate revenue agency] from basing any contract with an outside collection service on collections or assessments.

Section 3. {Amendment to state revenue and tax code}

Section [cite appropriate number] is amended to read:

(A) No employee of [cite appropriate revenue agency] shall be in any way compensated, promoted, evaluated or otherwise rewarded on the basis of revenue collected or assessed.

(B) The [cite appropriate revenue agency] may not enter into any contract with any outside collection service which uses revenues collected or assessed as a basis of payment.

Section 4. {Severability clause.}

Section 5. {Repealer clause.}

Section 6. {Effective date.}

Adopted by ALEC's Tax and Fiscal Policy Task Force at the Annual Meeting August 20, 1998.

Approved by full ALEC Board of Directors August, 1998