House Bill 1029 Summary

• 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 $50 and refunds of at least $50, with counties and municipalities required to work through the Mississippi Association of Supervisors or Mississippi Municipal League as their agents.

• Requires local governments to provide written notice to debtors, inform them of the 25% collection assistance fee, and allow 30 days to request a hearing to contest the debt before setoff occurs.

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

• Amends Section 27-7-83 to allow claimant local governments seeking debt collection through setoff to access taxpayer return information from the Department of Revenue, with strict confidentiality protections maintained.