An Act to eliminate contingency fee auditors

HD 199 prohibits state agencies, including the Department of Revenue and the state treasurer, from using contingent fee contracts for tax-related services. It bans paying auditors, tax experts, or firms based on the amount of tax, interest, or penalty assessed, aiming to protect independence in tax determinations. The law applies to all tax liability assessments, audits, and dispute resolution services, with an effective date of July 1, 2026, requiring the end of existing contingent contracts after that date. It directly affects state agencies, constitutional officers, and any firms they hire for tax work. The bill does not change tax rates or requirements but modifies how state agencies pay for tax-related services.