OK HB2584

Amends 68 O.S. 2011, Section 205.2 to allow state agencies, municipal courts, district courts, and housing authorities to file claims with the Oklahoma Tax Commission to intercept income tax refunds for unpaid debts of at least $50.

Authorizes the Tax Commission to deduct 5% collection expenses from intercepted refunds (2% retained by Commission, 3% to collecting agency), and requires written notice to debtors detailing the claim and their right to contest it within 60 days (30 days for Department of Human Services claims).

Provides due process rights including administrative hearings under the Administrative Procedures Act, with priority given to Tax Commission claims for delinquent state taxes before other agencies' claims.

Requires reimbursement to debtors if refunds exceed the debt amount plus collection expenses, and allows debtors against whom no claim is made to apply for their share of joint return refunds within 60 days.

Establishes that Tax Commission shall deduct state tax debts first, maintains confidentiality of tax information obtained during intercept process as misdemeanor violation, and becomes effective November 1, 2012.