MS HB1567

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

Applies only to debts of at least $250 and refunds of at least $250; counties must use the Mississippi Association of Supervisors and municipalities must use the Mississippi Municipal League as their collection agents.

Department of Revenue retains 5% of collected amounts for administrative costs; remaining net proceeds are credited to the claimant local government and the debtor's obligation is reduced accordingly.

Establishes priority system for multiple claims based on the date each member organization filed the claim with the department, or the date each local government requested submission if claims are from the same member organization.

Requires confidentiality of information exchanged between the Department of Revenue, local governments, and member organizations, with penalties equivalent to those for unauthorized disclosure of confidential tax information.