STATEHOUSE (March 7, 2018) — State Rep. Mike Karickhoff’s (R-Kokomo) proposal to help local governments collect past-due debts is moving to the governor’s desk for his consideration as a new law.
Karickhoff’s legislation would expand the ability of local governments to collect owed taxes before income tax refunds are provided to taxpayers. Currently, only state agencies and departments are able to take this action.
“During a successful pilot program, towns and cities in five counties were able to collect many past-due debts without having to intercept a tax refund by simply mailing a letter and alerting people of their debts,” Karickhoff said. “These funds are necessary to support and provide public services, so it’s important local governments receive the owed money as efficiently as possible.”
According to Karickhoff, the proposal reduces the workload related to the notices and hearings necessary to request a refund.
If an individual’s tax refund is intercepted, they would be notified by the Department of Revenue. This legislation also formalizes the appeal process for taxpayers to contest an intercept if they believe the action was incorrect.
For more information on House Enrolled Act 1262, visit iga.in.gov.
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State Rep. Mike Karickhoff (R-Kokomo) represents House District 30,
which includes portions of Grant and Howard counties.
A high-resolution photo of Karickhoff can be downloaded by clicking here.
