Senate Bill No. 881 - Summary

• Creates new administrative garnishment authority (section 140.910) allowing the Director of Revenue to issue orders directing employers and other payors to withhold and remit taxpayer assets to satisfy delinquent state taxes, provided the taxpayer is not in compliance with an alternative payment agreement.

• Establishes garnishment procedures including service by mail or electronic means, 10 business day payment deadlines, and employee protections prohibiting employer discharge within 30 days of a garnishment order, with penalties up to $500 plus back wages and attorney's fees for violations.

• Allows taxpayers to contest garnishment within 30 days with a hearing, where certified department records constitute prima facie evidence and the taxpayer may only raise defenses regarding mistaken identity, incorrect payments, or valid alternative payment agreements.

• Modifies existing tax lien procedures under sections 143.902, 144.380, and 144.690 regarding income tax, sales tax, and other tax assessments, clarifying notification requirements and correcting references from "his" to "the director's" throughout the sections.

• Prohibits garnishment orders from being issued if a taxpayer has entered into a written compliance agreement with the department and is current on payments; garnishment orders have priority over other legal process except child support withholding orders under specified sections.