Income tax; allow Department of Human Services to collect debts owed to it through setoff against state income tax refunds.
Impact
If enacted, this bill would facilitate the collection of debts owed to the Department of Human Services by allowing the state to intercept income tax refunds due to the debtors. This could significantly improve the agency's ability to recover funds associated with delinquent accounts, thus aiding in the financial management of state resources. By streamlining this process, the bill aims to strengthen the agency's collection efforts, which can ultimately contribute to improved fiscal health for the state.
Summary
House Bill 1698 aims to authorize the Mississippi Department of Human Services (DHS) to submit certain debts owed to it for collection through a setoff against a debtor's Mississippi income tax refund. The bill specifies that debts in excess of $125.00 can be submitted for collection, with exceptions outlined for disputed debts or situations where alternate means of collection are pending. This allows the DHS to collect outstanding debts effectively using tax refunds that would otherwise be disbursed to debtors.
Contention
The bill includes provisions for debtors to have a notice and opportunity to contest the setoff. The DHS must provide clear communication regarding the debt and setoff process, including notations about the debtor's rights to contest the setoff within a designated timeframe. However, there may be concerns about the implications for taxpayers, particularly regarding awareness of the debts and the processes they must navigate to contest any claims against their tax refunds, suggesting a potential increase in administrative challenges.
To Add The Department Of The Military To The List Of Claimant Agencies For Purposes Of The Setoff Against State Tax Refunds; And To Amend The Definition Of "debt" For Purposes Of The Setoff Against State Tax Refunds.
Revenue and taxation; claims by state agencies, municipal or district courts, or public housing authorities against state income tax refunds; modifying definition of qualified entity; effective date.
Individual income tax: home heating credit; adjustments based on Detroit Consumer Price Index; change to United States Consumer Price Index. Amends sec. 527a of 1967 PA 281 (MCL 206.527a).