MS HB1486

Establishes a 3-year statute of limitations for the Department of Revenue to collect on tax liens enrolled in the registry on or after July 1, 2026, with existing liens becoming uncollectible after July 1, 2029

Expands the definition of "doubtful claim" to include tax liens where the Department of Revenue is legally prohibited from taking collection action due to the new time limits

Caps compromise settlements at 50% of the original tax liability (excluding interest and penalties) for liens enrolled 3-10 years, and requires full forgiveness for liens enrolled more than 10 years

Limits settlements for pre-July 2026 liens that have been enrolled at least 10 years to a maximum of 25% of the original tax liability

Creates a special State Treasury fund from compromise settlement proceeds to be used by the Department of Revenue for reviewing and settling doubtful claims, subject to legislative appropriation