MS HB980

Municipalities and counties may submit debts exceeding $25 owed to them to the Department of Revenue for collection by offsetting against the debtor's Mississippi income tax refund.

The Department of Revenue must setoff any refund against certified debt amounts, transfer funds to the claimant, and notify the taxpayer of the setoff with a 30-day window to contest the offset.

Claimants must hold transferred funds in escrow until the debt's validity is determined, and must pay the Department a fee not exceeding $17 per case to cover administrative costs.

Debtors may request a hearing before the claimant within 30 days of notification to contest the setoff, and may appeal the claimant's final determination to circuit court within 30 days.

Upon final determination, the claimant must credit the verified debt amount against the debtor's obligation and refund any excess funds to the debtor, with confidentiality protections applied to taxpayer information disclosed by the Department.