Section: Miscellaneous Statutes

1. Confidential information relating to:
   1. A taxpayer may be disclosed to the taxpayer, its successor in interest or a designee of the taxpayer who is authorized in writing by the taxpayer. A principal corporate officer of a parent corporation may execute a written authorization for a controlled subsidiary. If a taxpayer elects to file an Arizona small business income tax return under section 43-302, a written authorization by the taxpayer to allow the department to disclose personal income tax information to a designee includes the corresponding Arizona small business income tax return.
   2. A corporate taxpayer may be disclosed to any principal officer, any person designated by a principal officer or any person designated in a resolution by the corporate board of directors or other similar governing body. If a corporate officer signs a statement under penalty of perjury representing that the officer is a principal officer, the department may rely on the statement until the statement is shown to be false.  For the purposes of this paragraph, “principal officer” includes a chief executive officer, president, secretary, treasurer, vice president of tax, chief financial officer, chief operating officer or chief tax officer or any other corporate officer who has the authority to bind the taxpayer on matters related to state taxes.
   3. A partnership may be disclosed to any partner of the partnership.  This exception does not include disclosure of confidential information of a particular partner unless otherwise authorized.
   4. A limited liability company may be disclosed to any member of the company or, if the company is manager-managed, to any manager.
   5. An estate may be disclosed to the personal representative of the estate and to any heir, next of kin or beneficiary under the will of the decedent if the department finds that the heir, next of kin or beneficiary has a material interest that will be affected by the confidential information.
   6. A trust may be disclosed to the trustee or trustees, jointly or separately, and to the grantor or any beneficiary of the trust if the department finds that the grantor or beneficiary has a material interest that will be affected by the confidential information.
   7. A government entity may be disclosed to the head of the entity or a member of the governing board of the entity, or any employee of the entity who has been delegated the authorization in writing by the head of the entity or the governing board of the entity.
   8. Any taxpayer may be disclosed if the taxpayer has waived any rights to confidentiality either in writing or on the record in any administrative or judicial proceeding.
   9. The name and taxpayer identification numbers of persons issued direct payment permits may be publicly disclosed.
   10. Any taxpayer may be disclosed during a meeting or telephone call if the taxpayer is present during the meeting or telephone call and authorizes the disclosure of confidential information.
2. Confidential information may be disclosed to:
   1. Any employee of the department whose official duties involve tax administration.
   2. The office of the attorney general solely for its use in preparation for, or in an investigation that may result in, any proceeding involving tax administration before the department or any other agency or board of this state, or before any grand jury or any state or federal court.
   3. The department of liquor licenses and control for its use in determining whether a spirituous liquor licensee has paid all transaction privilege taxes and affiliated excise taxes incurred as a result of the sale of spirituous liquor, as defined in section 4-101, at the licensed establishment and imposed on the licensed establishments by this state and its political subdivisions.
   4. Other state tax officials whose official duties require the disclosure for proper tax administration purposes if the information is sought in connection with an investigation or any other proceeding conducted by the official.  Any disclosure is limited to information of a taxpayer who is being investigated or who is a party to a proceeding conducted by the official.
   5. The following agencies, officials and organizations, if they grant substantially similar privileges to the department for the type of information being sought, pursuant to statute and a written agreement between the department and the foreign country, agency, state, Indian tribe or organization:
      1. The United States internal revenue service, alcohol and tobacco tax and trade bureau of the United States treasury, United States bureau of alcohol, tobacco, firearms and explosives of the United States department of justice, United States drug enforcement agency and federal bureau of investigation.
      2. A state tax official of another state.
      3. An organization of states, federation of tax administrators or multistate tax commission that operates an information exchange for tax administration purposes.
      4. An agency, official or organization of a foreign country with responsibilities that are comparable to those listed in subdivision (a), (b) or (c) of this paragraph.
      5. An agency, official or organization of an Indian tribal government with responsibilities comparable to the responsibilities of the agencies, officials or organizations identified in subdivision (a), (b) or (c) of this paragraph.
   6. The auditor general, in connection with any audit of the department subject to the restrictions in section 42-2002, subsection D.
   7. Any person to the extent necessary for effective tax administration in connection with:
      1. The processing, storage, transmission, destruction and reproduction of the information.
      2. The programming, maintenance, repair, testing and procurement of equipment for purposes of tax administration.
      3. The collection of the taxpayer’s civil liability.
   8. The office of administrative hearings relating to taxes administered by the department pursuant to section 42-1101, but the department shall not disclose any confidential information without the taxpayer’s written consent:
      1. Regarding income tax or withholding tax.
      2. On any tax issue relating to information associated with the reporting of income tax or withholding tax.
   9. The United States treasury inspector general for tax administration for the purpose of reporting a violation of internal revenue code section 7213A (26 United States Code section 7213A), unauthorized inspection of returns or return information.
   10. The financial management service of the United States treasury department for use in the treasury offset program.
   11. The United States treasury department or its authorized agent for use in the state income tax levy program and in the electronic federal tax payment system.
   12. The Arizona commerce authority for its use in:
       1. Qualifying renewable energy operations for the tax incentives under section 42-12006.
       2. Qualifying businesses with a qualified facility for income tax credits under sections 43-1083.03 and 43-1164.04.
       3. Fulfilling its annual reporting responsibility pursuant to section 41-1512, subsections U and V and section 41-1517, subsection L.
       4. Certifying computer data centers for tax relief under section 41-1519.
       5. Certifying applicants for the tax credit for motion picture production costs under sections 43-1082 and 43-1165.
   13. A prosecutor for purposes of section 32-1164, subsection C.
   14. The office of the state fire marshal for use in determining compliance with and enforcing title 37, chapter 9, article 5.
   15. The department of transportation for its use in administering taxes, surcharges and penalties prescribed by title 28.
   16. The Arizona health care cost containment system administration for its use in administering nursing facility provider assessments.
   17. The department of administration risk management division and the office of the attorney general if the information relates to a claim against this state pursuant to section 12-821.01 involving the department of revenue.
   18. Another state agency if the taxpayer authorizes the disclosure of confidential information in writing, including an authorization that is part of an application form or other document submitted to the agency.
   19. The department of economic security for its use in determining whether an employer has paid all amounts due under the unemployment insurance program pursuant to title 23, chapter 4.
   20. The department of health services for its use in determining the following:
       1. Whether a medical marijuana dispensary is in compliance with the tax requirements of chapter 5 of this title for the purposes of section 36-2806, subsection A.
       2. Whether a marijuana establishment, marijuana testing facility or dual licensee licensed under title 36, chapter 28.2 is in compliance with the tax obligations under this title or title 43.
   21. The Arizona department of agriculture for the purpose of ascertaining compliance with the licensing provisions in title 3.
   22. The office of economic opportunity for the purpose of performing the duties and obligations to or on behalf of this state prescribed by title 41, chapter 53.
3. Confidential information may be disclosed in any state or federal judicial or administrative proceeding pertaining to tax administration pursuant to the following conditions:
   1. One or more of the following circumstances must apply:
      1. The taxpayer is a party to the proceeding.
      2. The proceeding arose out of, or in connection with, determining the taxpayer’s civil or criminal liability, or the collection of the taxpayer’s civil liability, with respect to any tax imposed under this title or title 43.
      3. The treatment of an item reflected on the taxpayer’s return is directly related to the resolution of an issue in the proceeding.
      4. Return information directly relates to a transactional relationship between a person who is a party to the proceeding and the taxpayer and directly affects the resolution of an issue in the proceeding.
   2. Confidential information may not be disclosed under this subsection if the disclosure is prohibited by section 42-2002, subsection C or D.
4. Identity information may be disclosed for purposes of notifying persons entitled to tax refunds if the department is unable to locate the persons after reasonable effort.
5. The department, on the request of any person, shall provide the names and addresses of bingo licensees as defined in section 5-401, verify whether or not a person has a privilege license and number, a tobacco product distributor’s license and number or a withholding license and number or disclose the information to be posted on the department’s website or otherwise publicly accessible pursuant to section 42-1124, subsection F and section 42-3401.
6. A department employee, in connection with the official duties relating to any audit, collection activity or civil or criminal investigation, may disclose return information to the extent that disclosure is necessary to obtain information that is not otherwise reasonably available. These official duties include the correct determination of and liability for tax, the amount to be collected or the enforcement of other state tax revenue laws.
7. Confidential information relating to transaction privilege tax, use tax, severance tax, jet fuel excise and use tax and any other tax collected by the department on behalf of any jurisdiction may be disclosed to any county, city or town tax official if the information relates to a taxpayer who is or may be taxable by a county, city or town or who may be subject to audit by the department pursuant to section 42-6002. Any taxpayer information that is released by the department to the county, city or town:
   1. May be used only for internal purposes, including audits. If there is a legitimate business need relating to enforcing laws, regulations and ordinances pursuant to section 9-500.39 or 11-269.17, a county, city or town tax official may redisclose transaction privilege tax information relating to a vacation rental or short-term rental property owner or online lodging operator from the new license report and license update report, subject to the following:
      1. The information redisclosed is limited to the following:
         1. The transaction privilege tax license number.
         2. The type of organization or ownership of the business.
         3. The legal business name and doing business as name, if different from the legal name.
         4. The business mailing address, tax record physical location address, telephone number, email address and fax number.
         5. The date the business started in this state, the business description and the North American industry classification system code.
         6. The name, address and telephone number for each owner, partner, corporate officer, member, managing member or official of the employing unit.
      2. Redisclosure is limited to nonelected officials in other units within the county, city or town. The information may not be redisclosed to an elected official or the elected official’s staff.
      3. All redisclosures of confidential information made pursuant to this paragraph are subject to paragraph 2 of this subsection.
   2. May not be disclosed to the public in any manner that does not comply with confidentiality standards established by the department. The county, city or town shall agree in writing with the department that any release of confidential information that violates the confidentiality standards adopted by the department will result in the immediate suspension of any rights of the county, city or town to receive taxpayer information under this subsection.
8. The department may disclose statistical information gathered from confidential information if it does not disclose confidential information attributable to any one taxpayer.  The department may disclose statistical information gathered from confidential information, even if it discloses confidential information attributable to a taxpayer, to:
   1. The state treasurer in order to comply with the requirements of section 42-5029, subsection A, paragraph 3.
   2. The joint legislative income tax credit review committee, the joint legislative budget committee staff and the legislative staff in order to comply with the requirements of section 43-221.
9. The department may disclose the aggregate amounts of any tax credit, tax deduction or tax exemption enacted after January 1, 1994. Information subject to disclosure under this subsection shall not be disclosed if a taxpayer demonstrates to the department that such information would give an unfair advantage to competitors.
10. Except as provided in section 42-2002, subsection C, confidential information, described in section 42-2001, paragraph 1, subdivision (a), item (ii), may be disclosed to law enforcement agencies for law enforcement purposes.
11. The department may provide transaction privilege tax license information to property tax officials in a county for the purpose of identification and verification of the tax status of commercial property.
12. The department may provide transaction privilege tax, luxury tax, use tax, property tax and severance tax information to the ombudsman-citizens aide pursuant to title 41, chapter 8, article 5.
13. Except as provided in section 42-2002, subsection D, a court may order the department to disclose confidential information pertaining to a party to an action.  An order shall be made only on a showing of good cause and that the party seeking the information has made demand on the taxpayer for the information.
14. This section does not prohibit the disclosure by the department of any information or documents submitted to the department by a bingo licensee.  Before disclosing the information, the department shall obtain the name and address of the person requesting the information.
15. If the department is required or allowed to disclose confidential information, it may charge the person or agency requesting the information for the reasonable cost of its services.
16. Except as provided in section 42-2002, subsection D, the department of revenue shall release confidential information as requested by the department of economic security pursuant to section 42-1122 or 46-291. Information disclosed under this subsection is limited to the same type of information that the United States internal revenue service is authorized to disclose under section 6103(l)(6) of the internal revenue code.
17. Except as provided in section 42-2002, subsection D, the department shall release confidential information as requested by the courts and clerks of the court pursuant to section 42-1122.
18. To comply with the requirements of section 42-5031, the department may disclose to the state treasurer, to the county stadium district board of directors and to any city or town tax official that is part of the county stadium district confidential information attributable to a taxpayer’s business activity conducted in the county stadium district.
19. The department shall release to the attorney general confidential information as requested by the attorney general for purposes of determining compliance with or enforcing any of the following:
    1. Any public health control law relating to tobacco sales as provided under title 36, chapter 6, article 14.
    2. Any law relating to reduced cigarette ignition propensity standards as provided under title 37, chapter 9, article 5.
    3. Sections 44-7101 and 44-7111, the master settlement agreement referred to in those sections and all agreements regarding disputes under the master settlement agreement.
20. For proceedings before the department, the office of administrative hearings, the state board of tax appeals or any state or federal court involving penalties that were assessed against a return preparer, an electronic return preparer or a payroll service company pursuant to section 42-1103.02, 42-1125.01 or 43-419, confidential information may be disclosed only before the judge or administrative law judge adjudicating the proceeding, the parties to the proceeding and the parties’ representatives in the proceeding prior to its introduction into evidence in the proceeding. The confidential information may be introduced as evidence in the proceeding only if the taxpayer’s name, the names of any dependents listed on the return, all social security numbers, the taxpayer’s address, the taxpayer’s signature and any attachments containing any of the foregoing information are redacted and if either:
    1. The treatment of an item reflected on such a return is or may be related to the resolution of an issue in the proceeding.
    2. Such a return or the return information relates or may relate to a transactional relationship between a person who is a party to the proceeding and the taxpayer that directly affects the resolution of an issue in the proceeding.
    3. The method of payment of the taxpayer’s withholding tax liability or the method of filing the taxpayer’s withholding tax return is an issue for the period.
21. The department and attorney general may share the information specified in subsection S of this section with any of the following:
    1. Federal, state or local agencies located in this state for the purposes of enforcement of the statutes or agreements specified in subsection S of this section or for the purposes of enforcement of corresponding laws of other states.
    2. Indian tribes located in this state for the purposes of enforcement of the statutes or agreements specified in subsection S of this section.
    3. A court, arbitrator, data clearinghouse or similar entity for the purpose of assessing compliance with or making calculations required by the master settlement agreement or agreements regarding disputes under the master settlement agreement, and with counsel for the parties or expert witnesses in any such proceeding, if the information otherwise remains confidential.
22. The department may provide the name and address of qualifying hospitals and qualifying health care organizations, as defined in section 42-5001, to a business that is classified and reporting transaction privilege tax under the utilities classification.
23. The department may disclose to an official of any city, town or county in a current agreement or considering a prospective agreement with the department as described in section 42-5032.02, subsection G any information relating to amounts that are subject to distribution and that are required by section 42-5032.02. Information disclosed by the department under this subsection:
    1. May be used only by the city, town or county for internal purposes.
    2. May not be disclosed to the public in any manner that does not comply with confidentiality standards established by the department. The city, town or county must agree with the department in writing that any release of confidential information that violates the confidentiality standards will result in the immediate suspension of any rights of the city, town or county to receive information under this subsection.
24. Notwithstanding any other provision of this section, the department may not disclose information provided by an online lodging marketplace, as defined in section 42-5076, without the written consent of the online lodging marketplace, and the information may be disclosed only pursuant to subsection A, paragraphs 1 through 6, 8 and 10, subsection B, paragraphs 1, 2, 7 and 8 and subsections C, D and G of this section.  Such information:
    1. Is not subject to disclosure pursuant to title 39, relating to public records.
    2. May not be disclosed to any agency of this state or of any county, city, town or other political subdivision of this state.

1. This article does not apply:
   1. To personal injury claims.
   2. To death claims.
   3. To claims for damage to property other than a dwelling.
   4. To common law fraud claims.
   5. To proceedings brought pursuant to title 32, chapter 10.
   6. To claims solely seeking recovery of monies expended for repairs to alleged defects that have been repaired by the purchaser.
2. A dwelling action brought by an association is also subject to title 33, chapter 18.
3. After the repair or replacement process has been completed as prescribed by section 12-1363, this article does not affect either party’s ability to enforce any commercially reasonable alternative dispute resolution procedures contained in the contract for the sale of the dwelling or an association’s community documents. The seller’s election to enforce any commercially reasonable alternative dispute resolution procedures contained in the contract for the sale of the dwelling or an association’s community documents does not negate, abridge or otherwise reduce the seller’s right to repair or replace any alleged construction defects pursuant to section 12-1363.  If the contract for the sale of a dwelling contains the procedures, the procedures shall conspicuously appear in the contract in bold and capital letters and a disclosure statement in at least twelve-point font, bold and capital letters shall appear on the face of the contract and shall describe the location of the alternative dispute resolution procedures within the contract.

1. This chapter applies only to homeowners’ association dwelling actions. This chapter does not apply to:
   1. Actions filed by individual members of a homeowners’ association against a seller.
   2. Claims for personal injury, death or damage to property other than a dwelling.
   3. Common law fraud claims.
   4. Proceedings brought pursuant to title 32, chapter 10, whether filed by a homeowners’ association or by individual members of a homeowners’ association.
2. A homeowners’ association dwelling action is also subject to title 12, chapter 8, article 14.

Pursuant to title 41, chapter 6, article 10, an administrative law judge shall adjudicate complaints regarding and ensure compliance with:

1. Title 33, chapter 9 and condominium documents.
2. Title 33, chapter 16 and planned community documents.

1. A municipality shall adopt regulations that allow on any lot or parcel where a single-family dwelling is allowed all of the following:
   • 1. At least one attached and one detached accessory dwelling unit as a permitted use.
   • 2. A minimum of one additional detached accessory dwelling unit as a permitted use on a lot or parcel that is one acre or more in size if at least one accessory dwelling unit on the lot or parcel is a restricted-affordable dwelling unit.
   • 3. An accessory dwelling unit that is seventy-five percent of the gross floor area of the single-family dwelling on the same lot or parcel or one thousand square feet, whichever is less.

2. A municipality may not do any of the following:
   • 1. Prohibit the use or advertisement of either the single-family dwelling or any accessory dwelling unit located on the same lot or parcel as separately leased long-term rental housing.
   • 2. Require a familial, marital, employment or other preexisting relationship between the owner or occupant of a single-family dwelling and the occupant of an accessory dwelling unit located on the same lot or parcel.
   • 3. Require that a lot or parcel have additional parking to accommodate an accessory dwelling unit or require payment of fees instead of additional parking.
   • 4. Require that an accessory dwelling unit match the exterior design, roof pitch or finishing materials of the single-family dwelling that is located on the same lot as the accessory dwelling unit.
   • 5. Set restrictions for accessory dwelling units that are more restrictive than those for single-family dwellings within the same zoning area with regard to height, setbacks, lot size or coverage or building frontage.
   • 6. Set rear or side setbacks for accessory dwelling units that are more than five feet from the property line.
   • 7. Require improvements to public streets as a condition of allowing an accessory dwelling unit, except as necessary to reconstruct or repair a public street that is disturbed as a result of the construction of the accessory dwelling unit.
   • 8. Require a restrictive covenant concerning an accessory dwelling unit on a lot or parcel zoned for residential use by a single-family dwelling.
3. This section does not prohibit restrictive covenants concerning accessory dwelling units entered into between private parties. The municipality may not condition a permit, license or use of an accessory dwelling unit on adopting or implementing a restrictive covenant between private parties.
4. This section does not supersede applicable building codes, fire codes or public health and safety regulations, except that a municipality may not require an accessory dwelling unit to comply with a commercial building code or contain a fire sprinkler.
5. An accessory dwelling unit may not be built on top of a current or planned public utility easement unless the property owner receives written consent from any utility that is currently using the public utility easement or that may use the public utility easement in the future.
6. If a municipality fails to adopt development regulations as required by this section on or before January 1, 2025, accessory dwelling units shall be allowed on all lots or parcels zoned for residential use in the municipality without limits.
7. This section does not apply to lots or parcels that are located on:
   • 1. Tribal land.
   • 2. Land that is in the territory in the vicinity of a military airport or ancillary military facility as defined in section 28-8461.
   • 3. Land that is in the territory in the vicinity of a federal aviation administration commercially licensed airport or a general aviation airport or land that is in the territory in the vicinity of a public airport as defined in section 28-8486 and that has a noise level of greater than sixty-five decibels.
8. This section applies to a municipality with a population of more than seventy-five thousand persons.
9. For the purposes of this section:
   • 1. “Accessory dwelling unit” means a self-contained living unit that is on the same lot or parcel as a single-family dwelling of greater square footage than the accessory dwelling unit, that includes its own sleeping and sanitation facilities and that may include its own kitchen facilities.
   • 2. “Gross floor area” means the interior habitable area of a single-family dwelling or an accessory dwelling unit.
   • 3. “Long-term rental” means rental use in which the tenant holds a lease of ninety days or longer or on a month-by-month basis.
   • 4. “Municipality” means a city or town that exercises zoning powers under this title.
   • 5. “Permitted use” means the ability for a development to be approved without requiring a public hearing, variance, conditional use permit, special permit or special exception, other than a discretionary zoning action to determine that a site plan conforms with applicable zoning regulations.
   • 6. “Restricted-affordable dwelling unit” means a dwelling unit that, either through a deed restriction or a development agreement with the municipality, is rented to households earning up to eighty percent of area median income.