Bill Text: MS HB388 | 2023 | Regular Session | Engrossed
Bill Title: Income tax; revise local governmental entities that may collect debt by a setoff against a debtor's refund.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2023-03-23 - Approved by Governor [HB388 Detail]
Download: Mississippi-2023-HB388-Engrossed.html
MISSISSIPPI LEGISLATURE
2023 Regular Session
To: Ways and Means
By: Representative Lamar
House Bill 388
(As Passed the House)
AN ACT TO AMEND SECTION 27-7-805, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF THE TERMS "CLAIMANT LOCAL GOVERNMENT" AND "LOCAL GOVERNMENT" FOR PURPOSES OF THE SECTIONS OF LAW THAT AUTHORIZE COUNTIES AND MUNICIPALITIES TO SUBMIT CERTAIN DEBTS OWED TO THEM TO THE DEPARTMENT OF REVENUE FOR COLLECTION THROUGH A SETOFF AGAINST THE DEBTORS' MISSISSIPPI INCOME TAX REFUND; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-7-805, Mississippi Code of 1972, is amended as follows:
27-7-805. As used in this article:
(a) "Claimant local government" means counties and municipalities acting through their nonprofit member organizations with respect to the collection of any debt owed and finalized by law, ordinance, order or resolution. For purposes of this paragraph (a), counties and municipalities shall also include all corporations and other instrumentalities whose governing boards are comprised of a majority of members who are appointed or elected by counties and/or municipalities.
(b) "Debtor" means any person owing a debt to any claimant local government.
(c) "Debt" means any liquidated sum due and owing to any claimant local government which has accrued through contract, subrogation, tort, justice or municipal court conviction or any other debt regardless of whether there is an outstanding judgment for the sum.
(d) "Department" means the Mississippi Department of Revenue.
(e) "Local government" means a county or municipality. For purposes of this paragraph (e), counties and municipalities shall also include all corporations and other instrumentalities whose governing boards are comprised of a majority of members who are appointed or elected by counties and/or municipalities.
(f) "Member organization" means the Mississippi Association of Supervisors for counties, the Mississippi Municipal League for municipalities, or entities established through or contracted by these member organizations for the purpose of facilitating debt collection under this article.
(g) "Net proceeds collected" means gross proceeds collected through setoff against a debtor's refund less the collection assistance fees authorized in this article.
(h) "Person" means any individual, firm, partnership, association, trustee, receiver, assignee, corporation, entity, limited liability company, utility or joint venture.
(i) "Refund" means the Mississippi income tax refund which the department determines to be due a debtor.
(j) "Setoff" means the department's legal right to reduce the debtor's claim to a Mississippi income tax refund from the department by a debt the claimant local government properly establishes under this article which is owed by the debtor.
SECTION 2. This act shall take effect and be in force from and after July 1, 2023.
