House Bill 1091 Summary

• Establishes the "Local Government Debt Collection Setoff Act" authorizing counties and municipalities to submit debts of at least $50 to the Department of Revenue for collection through setoff against debtors' Mississippi income tax refunds.

• Requires local governments to provide written notice to debtors explaining the debt claim and collection process, with debtors having 30 days to request a hearing to contest the setoff; appeals proceed to circuit court.

• Imposes a 25% total collection assistance fee on debts collected, with the Department retaining 5% for administrative costs and 20% going to the member organization (Mississippi Association of Supervisors or Mississippi Municipal League) providing collection services.

• Authorizes the Department of Revenue and local governments to exchange necessary information for debt collection purposes, with strict confidentiality protections and penalties for unauthorized disclosure equivalent to those for Department of Revenue employees.

• Amends Section 27-7-83 of Mississippi Code to permit tax return disclosure to claimant local governments seeking debt collection through setoff procedures; effective January 1, 2016.