MS HB991

Establishes the "Local Government Debt Collection Setoff Act" authorizing counties and municipalities to collect debts through the Department of Revenue by offsetting them against individual Mississippi income tax refunds.

Requires local governments to submit debts of at least $50 through their member organizations (Mississippi Association of Supervisors for counties or Mississippi Municipal League for municipalities) and provide written notice to debtors with opportunity to contest via hearing.

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

Allows debtors to request a hearing within 30 days of notice to contest the debt, with appeals to circuit court based on the administrative record, provided civil or criminal issues already litigated cannot be reconsidered.

Amends Section 27-7-83 to permit the Department of Revenue and local governments to exchange confidential tax return information necessary for debt collection, subject to confidentiality requirements and penalties for unlawful disclosure.