MS SB2155

Establishes the "Local Government Debt Collection Setoff Act" authorizing counties and municipalities to submit debts of at least $50 to the Department of Revenue for collection by offsetting against state income tax refunds of at least $50.

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

Imposes a 25% total collection assistance fee on all debts collected through setoff, with the Department of Revenue retaining 5% and the remaining 20% going to the Mississippi Association of Supervisors or Mississippi Municipal League for collection services.

Establishes priority for multiple claims based on the date each claim is filed with the Department of Revenue and requires the department to provide detailed accounting of all setoffs to claimant local governments.

Allows debtors to appeal local government hearing decisions to circuit court and requires all information exchanged between the department and local governments to remain confidential with penalties for unauthorized disclosure.