Senate Bill 2245 - Local Government Debt Collection Setoff Act

• Authorizes counties and municipalities to submit debts of at least $50 to the Department of Revenue for collection through setoff against Mississippi income tax refunds of at least $50, with debts submitted through the Mississippi Association of Supervisors or Mississippi Municipal League.

• Requires local governments to provide written notice to debtors explaining the debt claim and allowing debtors 30 days to request a hearing before the local government to contest the proposed setoff.

• Imposes a total collection assistance fee of 25% on each debt collected, with the Department of Revenue retaining 5% for administrative costs and 20% going to the member organization for collection services.

• Establishes priority for multiple claims based on the date each claim was filed with the Department of Revenue, and requires the department to provide accounting details of all setoffs to local governments.

• Amends Mississippi Code Section 27-7-83 to permit disclosure of tax return information to claimant local governments seeking to collect debts through the setoff procedure, with strict confidentiality requirements and penalties for unauthorized disclosure.