HB 554 Summary

• Creates new section 140.910 authorizing the director of revenue to issue administrative garnishment orders against any person holding assets belonging to a taxpayer with delinquent taxes, once a certificate of lien has been filed.

• Establishes procedures for administrative garnishment including service by mail or certified mail, allowing employers to deduct up to $6 per month for costs, and requiring payment within 10 business days; garnishment orders remain in effect until the deficiency is paid or the director issues a termination notice.

• Provides taxpayers the right to contest garnishment within 30 days by requesting a hearing, where the department's records constitute prima facie evidence and the taxpayer bears the burden of proving mistaken identity, payment errors, or valid payment agreements.

• Prohibits employers from discharging employees due to garnishment orders, creating a rebuttable presumption of wrongful discharge if termination occurs within 30 days; violations can result in reinstatement, back wages, attorney's fees, and fines up to $500.

• Modifies lien statutes for income tax (143.902), sales tax (144.380), and use tax (144.690) to require notice to both county recorders and circuit court clerks when erroneously filed liens are expunged, and clarifies that liens may be refiled only once within the 10-year period.