MS SB2055

Authorizes counties and municipalities to collect debts of $50 or more from individuals through setoff against Mississippi income tax refunds, with exceptions for disputed debts, pending alternate collection efforts, or cases risking loss of federal funds.

Requires the Department of Revenue to transfer refunds to claimant local governments minus a 10% collection fee, with excess refund amounts returned to the debtor within a reasonable time.

Establishes a 30-day period for debtors to contest setoffs on grounds of mistake of fact only, with hearings conducted by the claimant local government and appeal rights to circuit court.

Requires claimant local governments to hold transferred funds in escrow pending hearing or waiver, and to refund any amounts received in excess of the debt owed.

Allows the Department of Revenue to disclose taxpayer information to claimant agencies for debt collection purposes while maintaining confidentiality restrictions on disclosed information.