FR 2021-00872

The document from the Federal Register highlights an initiative by the Census Bureau, operating under the Department of Commerce, to solicit public feedback on planned updates to the collection of tax data from state and local governments. Importantly, these updates include some changes to the kind of information collected, such as the addition of data categories related to cannabis and sports betting sales taxes. This initiative is conducted under the framework of the Paperwork Reduction Act of 1995, which aims to reduce the reporting burden on the public and ensure the utility of collected data.

General Summary

The Census Bureau seeks public comments on proposed revisions concerning the collection of tax revenue data from state and local governments. The goal is to refine the content of their surveys to better capture new revenue streams, thereby maintaining the relevancy of the information they gather. The deadline for submitting comments is March 16, 2021, allowing stakeholders and the public 60 days to provide their input.

Significant Issues and Concerns

A notable concern is the document’s assertion that there will be no cost to the public. While it states an estimated total annual cost of $0, this could be misleading as there may be indirect costs such as expenses for specialized software or additional record-keeping requirements that are not explicitly covered.

Moreover, although the document cites legal authority from Title 13 U.S.C., Sections 161 and 182, it does not elaborate on these authorities’ specifics, which could obscure the clarity for those not versed in legal codes. Another area of potential concern is privacy; while comments are a matter of public record, the text does not clearly outline measures in place to safeguard personal information, which could raise privacy issues for individuals submitting comments.

The level of detail presented in this notice may also be challenging for general audiences, particularly those unfamiliar with federal or tax-related processes. Furthermore, the document mentions that there was cognitive testing on the survey changes which supposedly revealed no impact on response times, but it does not provide additional information or evidence on how these conclusions are drawn.

Public Impact

Broadly speaking, this document's outcomes could positively impact how state and local tax data is collected and used. Modernizing data collections by including emerging revenue sources like cannabis and sports betting improves the relevance of governmental financial statistics, potentially contributing to more informed policy-making and economic analysis.

Impact on Stakeholders

For specific stakeholders such as state and local government agencies, the revisions may influence how they interact with the Census Bureau’s data collection processes, potentially requiring adjustments in how they compile and report tax data. These entities have the opportunity to weigh in during the comment period, which may help shape the final form of the Bureau's information collection. Economists, policy analysts, and researchers could also benefit from enhanced data quality and scope, which aids a deeper understanding of economic conditions and governmental financial activities.

In summary, while the proposed revisions and their solicitation of public comments present a move towards more refined data collection processes, questions around indirect costs, legal basis, privacy measures, and the communication of testing results should be carefully considered to ensure transparency and stakeholder confidence in the Census Bureau’s efforts.

The document provides an overview of a proposed information collection by the Census Bureau related to the Quarterly Summary of State and Local Government Tax Revenues. This proposal includes several important financial references and implications, particularly concerning the estimated costs to the public and efficiency of data collection processes.

Estimated Costs to the Public

The document specifies an "Estimated Total Annual Cost to Public: $0". This figure is noteworthy because it does not reflect any direct financial burden on the respondents. However, it is important to consider the potential for indirect costs that respondents may incur. These could include expenses related to purchasing specialized software or hardware necessary for reporting, or engaging in accounting or records maintenance services necessary due to the data collection. While not explicitly categorized as direct costs, these indirect expenses can still represent a financial obligation for respondents, and the lack of clarity on this point may be misleading.

Indirect Costs and Transparency Issues

One of the identified issues is the potential lack of transparency regarding these indirect costs. The document claims that the annual cost is $0 but mentions there could be indirect costs incurred by respondents for additional services or equipment. This discrepancy raises questions about the accuracy of the financial impact on respondents. It could be beneficial for the document to provide further clarification about these potential expenses to ensure a clear understanding for all affected parties.

Legal and Procedural Context

Another issue related to the legal authority provided—Title 13 U.S.C., Sections 161 and 182—could impact the perceived legitimacy of any costs or resources required by the information collection process. For those unfamiliar with these legal provisions, it might not be clear how these laws justify or mandate the collection process and any associated fiscal implications. This context is crucial for understanding why these costs, even if estimated as zero, are deemed acceptable.

Privacy and Public Disclosure Considerations

The document also addresses privacy concerns, noting that personal identifying information provided in comments may become publicly accessible. While this does not directly impact costs, it relates to the transparency and trustworthiness of the information collection process, which can, in turn, influence public willingness to bear any unacknowledged financial burdens.

Overall, while the document outlines a zero-dollar direct cost, potential indirect costs should be more explicitly addressed to provide a complete financial overview. Additional transparency regarding both the legal basis and privacy measures associated with this information collection could further enhance public understanding and trust.