Under current law, DATCP issues annual licenses to operators of vehicle scales.
DATCP is authorized to adjust the $60 license fee by rule, and may impose a $200
license fee surcharge on an applicant who has operated a scale without a license.
Currently, no person may construct or relocate a scale without a permit from DATCP,
but DATCP is not authorized to charge a permit fee. DATCP may grant a variance
from its scale construction standards, but DATCP is not authorized to charge a
variance fee.
This bill permits DATCP to adjust the $200 license fee surcharge by rule. The
bill also permits DATCP to establish and charge a fee for a permit to construct or
relocate a scale or for a variance from DATCP construction standards.
Under current law, an operator of a liquid petroleum (LP) gas meter must
register the meter with DATCP and pay a one-time registration fee of $25.
Operators must test LP gas meters annually or face a $100 testing surcharge.
Under this bill, DATCP issues annual licenses to operators of gas meters and
may charge a license fee in an amount DATCP sets by rule. DATCP may also impose
a surcharge in an amount set by rule on an applicant who has operated a gas meter
without a license, and may adjust the $100 testing surcharge by rule. The bill
requires DATCP to promulgate testing, reporting, and record-keeping standards for
gas meter operators, and permits DATCP to promulgate standards for gas meter
construction, operation, and maintenance.
Current law requires that a person who delivers fuel oil or certain other liquid
fuels from a vehicle equipped with a pump and metering device to equip the pump
and metering device with a delivery ticket printer that can print data including the
volume of fuel delivered.
The bill requires an operator of a vehicle tank meter (used to measure a delivery
of fuel oil or certain other liquid fuels) to obtain an annual license from DATCP.
DATCP may charge a license fee and may impose a license fee surcharge on an
applicant who operates a tank meter without a license. DATCP may set the amount
of the license fee and the license fee surcharge by rule and may promulgate standards
for tank meter construction, operation, and maintenance. Under the bill, a tank
meter operator must have the tank meter tested annually, and must report the
results to DATCP or pay a DATCP-imposed surcharge.
This bill prohibits a state employee from using a privately owned aircraft to
travel outside of this state for the conduct of state business. Currently, the use of a
privately owned aircraft for out-of-state travel is permitted if it is more efficient and
economical for the conduct of state business than commercial transportation.
taxation
Income taxation
Under current law, there are four income tax brackets for single individuals,
certain fiduciaries, heads of households, and married persons. The brackets are
indexed for inflation. The current rate of taxation for the lowest bracket is 4.6
percent of taxable income; the rate for the second bracket is 6.15 percent; the rate for
the third bracket is 6.5 percent; and the rate for the highest bracket is 6.75 percent.
The highest bracket applies to taxable income exceeding $112,500 for single
individuals, certain fiduciaries, and heads of households; $150,000 for married
persons filing jointly; and $75,000 for married separate filers.
This bill creates a fifth tax bracket with a taxation rate of 7.75 percent. For
single individuals, certain fiduciaries, and heads of households, this bracket applies
to taxable income exceeding $225,000. For married persons, this bracket applies to
taxable income exceeding $300,000 for joint filers and $150,000 for separate filers.
The bracket is indexed for inflation starting with taxable year 2010.
Under current law, an eligible claimant may recover a certain amount of
property taxes paid through the refundable farmland preservation tax credit. A
refundable tax credit may be paid to an eligible claimant by check if the amount of
the credit which is otherwise due the claimant exceeds the claimant's tax liability,
or if there is no outstanding tax liability.
A current eligibility requirement for the farmland preservation tax credit is
that the farmland to which the claim relates be subject either to a farmland
preservation agreement (FPA) or to a county exclusive agricultural use zoning
ordinance. An FPA and an exclusive agricultural use zoning ordinance impose
certain soil and water conservation standards. The term of an FPA is generally 10
to 25 years, although the parties may agree to relinquish the agreement under
certain circumstances.
The credit is computed based on property taxes accrued on the claimant's
farmland in the preceding year; the claimant's household income; and the
agreement, planning, or zoning provisions that cover the farmland. The maximum
credit is $4,200, and the minimum credit is $600, although the maximum credit may
be reduced based on the zoning ordinances in the county where the farmland is
located.
Under this bill, no new claims may be filed for taxable years beginning after
December 31, 2009, but an otherwise eligible claimant who is subject to an FPA that
is in effect on January 1, 2010, may continue to file a claim for the credit until the
agreement expires.
The bill also creates a new refundable farmland preservation credit. The credit
is funded from the lottery fund, up to approximately $15,000,000 of claims. Excess
claims, up to approximately $12,280,000, are paid from the general fund. The
maximum amount of credits that may be claimed each year may not exceed
$27,280,000. If the total amount of eligible claims exceed $27,280,00, DOR must pay
the excess claims in the subsequent fiscal year and prorate the per acre amounts (see
below) to account for prior year claims being paid in the year subsequent to that year.
If a claimant's payment is so delayed, the claimant may not receive any interest on
his delayed payment, or any other refund.
The new farmland preservation credit is calculated by multiplying a claimant's
qualifying acres by one of the following amounts: $10, if the acres are in a farmland
preservation zoning district and are subject to a new FPA (an FPA that was entered
into after the effective date of the bill); $7.50 if the acres are located in a farmland
preservation zoning district, but are not subject to a new FPA; or $5.00 if the acres
are subject to a new FPA, but are not located in a farmland preservation zoning
district.
Under the bill, qualifying acres are determined using several factors, including
the number of acres of farm that correlate to a claimant's percentage of ownership
interest in a farm, the extent to which the farm is covered by a new FPA, and whether
the farm is in farmland preservation zoning district. For a description of the
requirements of a new FPA, see "AGRICULTURE."
Under current law, for claims filed in 2001 and thereafter, the homestead tax
credit threshold income is $8,000; the maximum property taxes, or rent constituting
property taxes, that a claimant may use in calculating his or her credit are $1,450;
and the maximum household income is $24,500. Currently, as a claimant's income
exceeds $8,000, the credit is phased out until the credit equals zero when income
exceeds $24,500, and if the household income is $8,000 or less, the credit is 80 percent
of the property taxes accrued or rent constituting property taxes accrued. Using this
formula, the credit that may be claimed ranges from $10 to $1,160.
Under this bill, for claims filed in 2011 and thereafter, the maximum household
income is indexed for inflation. Also under the bill, as a claimant's income exceeds
the threshold income amount, the credit is phased out until the credit equals zero
when income exceeds the maximum income as adjusted for inflation.
Under current law, a corporation may claim an income and franchise tax credit
in an amount equal to 5 percent of its qualified research expenses, as defined by the
Internal Revenue Code, for research conducted in this state. In addition, a
corporation may claim an income and franchise tax credit equal to 5 percent of the
amount that it paid in the taxable year to construct and equip new facilities or
expand existing facilities used in this state for qualified research, as defined by the
Internal Revenue Code.
Under this bill, a corporation may also claim an income and franchise tax credit
equal to its qualified research expenses in the taxable year for research conducted
in this state that exceeds the amount equal to the average amount of the
corporation's qualified research expenses in the previous three taxable years
multiplied by 1.25. If the credit claimed by a corporation exceeds the corporation's
tax liability, the state does not issue a refund, but the corporation may carry forward
any remaining credit to five subsequent taxable years.
This bill allows a business to claim an income and franchise tax credit in an
amount up to 10 percent of the wages that the business paid in the taxable year to
certain full-time employees, as determined by Commerce. A business may also claim
a credit for the costs it incurred for certain job-related training. If the amount of the
taxpayer's credits exceed the taxpayer's tax liability, the taxpayer receives a refund.
This bill creates a refundable individual income tax credit for a beginning
farmer who enters into at least a three-year lease of an established farmer's
agricultural assets, other than land, and uses the assets for farming, and a
refundable individual and corporate income and franchise tax credit for the
established farmer whose assets are leased. If the amount of credit due a claimant
exceeds the claimant's tax liability, the excess is refunded to the claimant by check.
The credit first applies to taxable years beginning on January 1, 2011.
Under the bill, beginning farmer may claim a credit of up to $500 on a one-time
basis for the cost to enroll in a course in farm financial management that is offered
by an educational institution, such as the UW-Madison, UW-Extension, or the
Wisconsin Technical College System. An established farmer may claim a credit of 15
percent of the amount of payments received each year from the beginning farmer for
the lease of the farm assets, except that the credit may be claimed by the established
farmer only for the first three years of the lease.
A beginning farmer must have a net worth of less than $200,000 and have
farmed for fewer than ten years out of the preceding 15 years. An established farmer
must have engaged in farming for at least ten years.
Under current law, after December 31, 2009, individuals and certain entities,
including fiduciaries, corporations, and insurance companies, that are health care
providers may receive a credit on income taxes based on purchases of information
technology hardware and software for making and keeping electronic medical
records. This bill delays the effective date of the tax credit until after December 31,
2011.
Under current law, there is an income tax exclusion for individuals, fiduciaries,
members of limited liability corporations and partnerships, and shareholders of
tax-option corporations (claimants) for 60 percent of the net long-term capital gains
realized from the sale of assets held for at least one year. This bill reduces the
exclusion to 40 percent.
Also under this bill, for taxable years beginning after December 31, 2010, a
claimant may elect to defer the payment of income taxes on up to $10,000,000 of the
gain realized from the sale of any capital asset held more than one year (original
asset) that is treated as a long-term gain under the Internal Revenue Code (IRC),
if the claimant completes a number of requirements. The bill specifies that the basis
of the investment is the amount of the investment minus the gain generated by the
sale of the original asset. If a claimant defers the payment of income taxes on the
gain generated by the sale of the original asset, the claimant may not use that gain
to net the claimant's gains and losses as the claimant could do if the claimant did not
elect to defer the payment of taxes on the gain.
Under current law, 50 percent of the sales of the following tangible personal
property must be included in a taxpayer's sales factor for income and franchise tax
purposes:
1. Property that is shipped from storage in this state to the federal government
outside this state, if the destination state does not have tax jurisdiction over the
taxpayer.
2. Property that is shipped from storage in this state to a purchaser, other than
the federal government, if the destination state does not have tax jurisdiction over
the taxpayer.
3. Property sold by an office in this state, but not shipped from this state, if
neither the state from which the property is shipped nor the destination state has
tax jurisdiction over the taxpayer.
Under this bill, 100 percent of the sales of all such tangible personal property
must be included in a taxpayer's sales factor.
Under current law, 50 percent of the following must be included in a taxpayer's
sales factor for income and franchise tax purposes:
1. Gross receipts from the use of computer software that are received in a state
in which the taxpayer is not subject to an income tax, if the taxpayer's commercial
domicile is in this state.
2. Gross receipts from services, if the benefit of service is received in a state in
which the taxpayer is not subject to an income tax, but the taxpayer's employees or
representative's performed services from a location in this state.
Under this bill, 100 percent of such gross receipts must be included in a
taxpayer's sales factor.
Under current law, in order to claim the angel investment credit or the early
stage seed investment credit, the taxpayer must hold the investment for at least
three years. If a taxpayer holds the investment that is the basis for an angel
investment credit for less than one year, the taxpayer must pay DOR the amount of
the credit that the taxpayer received.
Under this bill, if a taxpayer holds an investment that is the basis for an angel
investment credit or early stage seed investment credit for less than three years, the
taxpayer must pay DOR the amount of the credit that the taxpayer received.
This bill adopts, for state income and franchise tax purposes, certain changes
made in IRC.
Under federal law, a business may deduct a percentage of income derived from
qualified domestic production activities, regardless of whether those activities
occurred in this state. The percentage of income derived from such activities that a
business may claim as a deduction is 3 percent in 2005 and 2006, 6 percent in 2007,
2008, and 2009, and 9 percent for 2010 and subsequent years. Under this bill, the
increased deduction for qualified domestic production activities does not apply for
state income and franchise tax purposes for taxable years beginning on or after
January 1, 2009.
This bill provides an income and franchise tax credit for 10 percent of the
amount that a person pays in the taxable year for meat processing modernization or
expansion related to the person's meat processing operation.
Under current law, a person may claim a credit against the person's income or
franchise tax liability that is equal to 10 percent of the amount that the person paid
in the taxable year for dairy manufacturing modernization or expansion related to
the claimant's dairy manufacturing operation. If the amount of the credit exceeds
the amount of the person's tax liability, the person receives a refund. Under current
law, dairy cooperatives are generally not subject to state income or franchise taxes
and therefore are not eligible to claim the credit for dairy manufacturing
modernization or expansion.
This bill allows the members of a dairy cooperative to claim the credit for the
dairy manufacturing modernization or expansion expenses paid by the cooperative.
The dairy cooperative determines the amount of the credit that each member may
claim based on the amount of milk each member delivers to the cooperative.
Under current law, a person who owns an income-producing historic building
may claim a federal income tax credit that is equal to 20 percent of certain costs to
rehabilitate the historic building. To claim the credit, the building must be listed,
or be eligible for listing, on the national register of historic places or located in certain
national, state, or local historic districts, and the rehabilitation work must comply
with standards established by the secretary of the interior.
Under current law, a person who may claim the federal income tax credit for
rehabilitating an income-producing historic building may also claim a state income
tax or franchise tax credit equal to 5 percent of certain costs to rehabilitate the
historic building. To claim the credit, the person must include with the person's tax
return evidence that the secretary of the interior approved the rehabilitation work
before the work began.
Under this bill, a person may claim the state income and franchise tax credit
for rehabilitating an income-producing historic building if the person includes with
the person's tax return evidence that the state historic preservation officer
recommended the rehabilitation work for approval by the secretary of the interior
before the rehabilitation work began and that the rehabilitation was approved by the
secretary of the interior.
Under current law, any extension of time to file a federal individual income or
corporate income or franchise tax return granted under federal law or by the Internal
Revenue Service (IRS) automatically extends the time to file the corresponding
Wisconsin individual income or corporate income or franchise tax return. If the
federal extension is granted due to a presidentially declared disaster or terroristic
or military action, however, Wisconsin taxpayers are charged interest at the rate of
12 percent per year during the extension period.
Under this bill, interest on unpaid individual income or corporate income or
franchise tax, or interest that would otherwise be due for an underpayment of
estimated taxes, does not apply if the taxpayer is allowed an extension due to disaster
or terror. The bill also allows, for good cause, an extension of time to deposit
withholding tax. In addition, the bill exempts from interest a late payment of
withholding tax from a pass-through entity if the taxpayer is allowed an extension
due to disaster or terror.
Under current law, the itemized deductions credit is calculated as 5 percent of
the difference between the sum of certain amounts that are allowed as itemized
deductions under the IRC and the standard deduction. Some deductions allowed
under the IRC, such as casualty and theft deductions and miscellaneous deductions,
are not allowed in the calculation of the itemized deductions credit. Under this bill,
a casualty loss that is directly related to a presidentially-declared disaster may be
used in the computation of the itemized deductions credit.
Under current law, partnerships, limited liability companies, tax-option
corporations, estates, and trusts (pass-through entities) must pay withholding tax
on Wisconsin income allocated to nonresident partners, members, shareholders, or
beneficiaries. The tax is due in a single annual payment. Under this bill, a
pass-through entity pays the withholding tax on the income allocated to nonresident
partners, members, shareholders, or beneficiaries in four quarterly installments.
Under current law, if a corporation that must file a state income or franchise
tax return is affiliated with any other corporation, DOR may require that the
corporation submit a consolidated statement so that DOR may determine the taxable
income received by any affiliated corporation. Under this bill, DOR may also require
a corporation to submit a consolidated statement in order for DOR to determine
whether the corporation and any affiliated corporation are a unitary business.
Under current law, a corporation that does not file its income or franchise tax
return by the due date is subject to a $30 penalty. If any other taxpayer fails to file
an income or franchise tax return by its due date, the taxpayer is subject to the
following penalties:
1. Two dollars, if the taxpayer's income tax is less than $10.
2. Three dollars, if the taxpayer's income tax is $10 or more, but less than $20.
3. Five dollars, if the taxpayer's income tax is $20 or more.
Under current law, however, a taxpayer that is not a corporation is subject to
a $30 penalty for a return that is at least 60 days late, regardless of the amount of
the taxpayer's income tax.
Under this bill, any taxpayer who does not file an income or franchise tax return
by the due date is subject to a $50 penalty. The bill also provides that fiduciaries,
partnerships, and tax-option corporations must provide schedules to their
beneficiaries, partners, and shareholders that specify the income, deductions,
credits, and other items related to the tax liability of the beneficiary, partner, or
shareholder. Any fiduciary, partnership, or tax-option corporation that fails to
provide the schedule is subject to a $50 penalty.
Under current law, a person may claim an income and franchise tax credit for
25 percent of the amount the person paid in the taxable year to install or retrofit
pumps that dispense motor vehicle fuel consisting of at least 85 percent ethanol or
at least 20 percent biodiesel fuel. This bill modifies the credit so that taxpayers may
claim the credit against the alternative minimum tax and so that corporations may
compute the credit, with other credits, in the same order as insurance companies.
Under current law, a health care provider may claim an income and franchise
tax credit for 50 percent of the amount the provider paid in the taxable year for
information technology hardware or software that is used to maintain medical
records in electronic form. This bill allows a taxpayer to claim the credit against the
alternative minimum tax.
Under current law, a business located in a technology zone may claim an income
and franchise tax credit, in an amount certified by the Department of Commerce,
based on the amount of real and personal property taxes, capital investments, and
wages the business paid in the taxable year. Under current law, all entities, except
insurance companies, must include the amount of the credit in their income
calculation, for income and franchise tax purposes. This bill requires insurance
companies to include technology zone credits in their income calculations.
Property taxation
Under current law, the total amount of the school levy and lottery and gaming
property tax credits is distributed to counties, which distribute the amounts to the
municipalities located in the counties. A municipality, however, may receive its
share of the school levy and lottery and gaming credits directly from the state if the
total amount of such credits due to the municipality is at least $3,000,000 or if the
municipality allows the payment of property taxes in three or more installments.
Under current law, the total amount of the first dollar property tax credit is
distributed to the municipalities. The first dollar credit is applied then to every
parcel of real property with improvements located in a municipality.
Under this bill, the first dollar credit is distributed to counties, which distribute
the amounts that they receive to the municipalities located in the counties. A
municipality, however, may receive its share of the first dollar credit directly from the
state if the total amount of that credit plus the school levy and lottery and gaming
credits due to the municipality is at least $3,000,000 or if the municipality allows the
payment of property taxes in three or more installments.
Under current law, if a person pays property taxes in installments and is
eligible to receive a lottery and gaming property tax credit, the amount of the credit
is applied to the amount of the first installment. Under this bill, if a person pays
property taxes in installments and is eligible to receive a first dollar property tax
credit, the amount of the credit is applied to the amount of the first installment.
This bill creates a property tax exemption for machinery and other tangible
personal property used for qualified research by persons engaged primarily in
manufacturing or biotechnology in this state.
Under current law, computers are exempt from the property tax. The state,
however, compensates the taxing jurisdictions in which tax-exempt computers are
located for the property taxes that the jurisdictions would otherwise have collected.
Under this bill, the state compensates the taxing jurisdictions in which tax-exempt
research property is located for the property taxes that the jurisdictions would
otherwise have collected.
Under current law, DOR monitors the property tax assessments in all taxation
districts. If DOR determines that a major class of property in a taxation district
(property with an assessed value representing more than 5 percent of the full value
of all property in the taxation district) has not been assessed at a value that is within
10 percent of the full value of such property at least once during the most recent five
years, DOR notifies the taxation district that the assessment staff in that district
must participate in an assessment education program. Under current law, if DOR
determines that a major class of property in the taxation district has not been
assessed at a value that is within 10 percent of the full value of such property in the
year that the taxation district's assessment staff participated in an assessment
education program and in the following year, DOR must supervise the taxation
district's next property tax assessment.
Under this bill, a major class of property is property with an assessed value
representing more than 10 percent of the full value of all property in the taxation
district in which the major class of property is located. Under the bill, if DOR
determines that a major class of property in a taxation district has not been assessed
at a value that is within 10 percent of the full value of such property at least once
during the most recent five years, DOR notifies the taxation district that DOR may
supervise a subsequent taxation district assessment. If DOR determines that a
major class of property in the taxation district has not been assessed at a value that
is within 10 percent of the full value of such property in the year after the taxation
district receives such notice, DOR must supervise the taxation district's next
property tax assessment.
This bill requires DOR to collaborate with counties to create county property
tax assessment systems.
Under current law, state-owned facilities are exempt from the property tax.
Instead, the state makes payments to counties and municipalities where state
facilities are located to partially compensate the counties and municipalities for the
costs of providing services to the facilities. Under current law, DOA administers the
program to pay for county and municipal services. Under this bill, DOR administers
the program.
Other taxation
This bill imposes an assessment on a motor vehicle fuel supplier at a rate not
exceeding 3 percent of the supplier's gross receipts from the sale of motor vehicle fuel
in this state. The revenue collected is deposited into the transportation fund. The
supplier may not increase the selling price of motor vehicle fuel in order to recover
the assessment amount. Income derived from the sale in this state of biodiesel fuel
or ethanol blended with gasoline to create gasoline consisting of at least 85 percent
ethanol is not included in the supplier's gross receipts.
This bill increases the cigarette tax from $1.77 to $2.52 a pack and increases the
tobacco products tax from 50 percent to 71 percent of the manufacturer's established
list price. In addition, the bill increases the tobacco products tax rate on moist snuff
from $1.31 per ounce to $1.87 per ounce and imposes the increase on moist snuff in
inventory.
Under current law, generally, a person may not sell cigarettes in this state
without a permit from DOR. Current law also prohibits a direct marketer (anyone
who sells cigarettes to a consumer who is not present on the seller's premises) from
selling to consumers in this state unless the direct marketer fulfills certain
requirements.
Under current law, a direct marketer must certify to DOR that the person will
register with debit and credit card companies; that the invoices for all shipments of
cigarettes will bear the direct marketer's name and address; and that the direct
marketer will provide DOR any information that DOR considers necessary. The
direct marketer may not sell any cigarettes unless the sales tax, use tax, or cigarette
tax, as appropriate, has been paid.
Current law requires a direct marketer to verify the consumer's name and
address and that the consumer is at least 18 years of age. In addition, any person
who delivers cigarettes to consumers in this state must verify that the purchaser, and
the person who receives the delivery, is at least 18 years of age.
Under this bill, generally, current provisions that apply to the direct marketing
of cigarettes also apply to the direct marketing of tobacco products. In addition, no
person may sell cigarettes or tobacco products to consumers in this state unless the
person applies to DOR for a permit.
Under current law, a person may not sell cigarettes or tobacco products to
consumers in this state unless the person obtains a license from each municipality
in which the person intends to sell cigarettes or tobacco products. Under the bill, no
municipality may issue a license to any person who has an arrest or conviction record
related to selling cigarettes or tobacco products but a direct marketer who holds a
valid permit to sell cigarettes or tobacco products to consumers in this state is not
required to obtain a license from each municipality in which the cigarettes or tobacco
products are sold.
Under current law, a municipality or county that is located in a premier resort
area may impose a sales tax of 0.5 percent on gross receipts from the sale of tangible
personal property and taxable services sold at certain businesses, as classified under
the federal Standard Industrial Classification Manual.
This bill allows a municipality or county that imposed the premier resort area
tax prior to January 1, 2000, to increase the tax rate to 1 percent. In addition, a
number of businesses are added to the list of businesses in which sales are subject
to the tax.
This bill creates a sales and use tax exemption for machinery and other tangible
personal property used for qualified research by persons engaged primarily in
manufacturing or biotechnology in this state.
This bill provides that, for sales and use tax purposes, taxable sales do not
include the sale of tickets or admissions by a nonprofit organization to participate
in any sports activity in which more than 50 percent of the participants are younger
than 20.
Under current law, DOR may enter into agreements with American Indian
tribes or bands in this state to refund, generally, the cigarette and tobacco product
taxes imposed on sales of cigarettes and tobacco products on land that was
designated a reservation or trust land on or before January 1, 1983. Under this bill,
DOR may provide tax refunds for cigarettes and tobacco products sold on land
designated a reservation or trust land on or before January 1, 1983, or on a later date
determined by an agreement between DOR and the tribal council.
The bill also allows DOR to enter into agreements with American Indian tribes
or bands in this state to collect, remit, and provide refunds of income, withholding,
sales and use, motor vehicle fuel, and beverage taxes related to activities on tribal
lands or undertaken by tribal members outside of tribal lands.
Under current law, a state agency may certify to DOR a debt owed to the agency
so that DOR can collect the debt from the debtor's state tax refund. Certifiable debts
include an amount that has been reduced to a judgment or an amount for which the
agency has provided the debtor reasonable notice and an opportunity to be heard.
Under current law, DOR charges the debtor for administrative expenses related to
offsetting the debt.
This bill generally requires a state agency to enter into a written agreement
with DOR to collect any amount owed to the agency that is more than 90 days past
due, unless negotiations with the debtor are actively ongoing, the debt is the subject
of legal or administrative proceedings, or the debtor is adhering to an acceptable
payment arrangement. Under the agreement, DOR, rather than the agency, may
provide the debtor reasonable notice and an opportunity to be heard with regard to
the debt. Also, DOR may collect the debt directly from the debtor in addition to
offsetting a state tax refund. Under the bill, DOR charges the debtor for
administrative expenses related to collecting the debt.
This bill requires financial institutions to provide DOR with information about
account holders so that DOR can determine if any of those persons owe the state
delinquent debts. Current law permits DOR to levy on financial institutions to
collect delinquent debts from the accounts of debtors.
