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IN HB1381
Bill
Status
1/17/2017
Primary Sponsor
Michael Karickhoff
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AI Summary
HB 1381 Summary
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Department of state revenue may collect debts owed to local units of government through income tax refund set-off using a nonprofit clearinghouse as an intermediary.
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Local units of government must provide written notice to debtors and allow a 30-day protest period with a hearing before the fiscal officer before submitting debts for tax refund set-off.
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A $25 collection fee is imposed on each debt collected through set-off, distributed as $5 to the department and $20 to the nonprofit clearinghouse entity.
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Debtors may contest proposed set-offs through an informal hearing with the local fiscal officer and may file a court action to stay submission of the debt, with burden of proof on the local unit of government.
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Effective July 1, 2017.
Legislative Description
Income tax refund intercepts. Provides that the department of state revenue (department) may collect debts of a local unit of government through tax refund set off. Provides that the department may enter into a contract with a nonprofit entity to establish a clearinghouse to act as an intermediary whereby a local unit of government may submit debts for tax refund set off to the department. Provides that an application for tax refund set off by a local unit of government must be submitted through the clearinghouse. Allows a local unit of government to enter into an interlocal agreement with the
Last Action
First reading: referred to Committee on Ways and Means
1/17/2017