House Bill 1073 – Burton & Grubb:
Requires a special counsel or collection agency that makes a claim on behalf of the department of state revenue or a county treasurer to levy on a taxpayer’s property at a financial institution to: (1) submit certain information concerning the claim to the financial institution; and (2) pay a fee of $10 for each claim submitted to the financial institution.
Specifically, when a collector is going to drain a tax-debtor’s bank account for unpaid taxes, it will have to provide the bank with:
1. Proof of employment for or a contract with the county treasurer or department of revenue;
2. A $10 fee.
3. A notice of the levy they’re collecting on.
4. A form with remittance instructions
5. A self-addressed, stamped envelope for the bank to use for the remittance.
I don’t really have a problem with any of this, though the envelope seems a little nit-picky — that cost should probably be deemed included with the $10 fee you’re paying the bank for the hassle of compliance. Here is the part I have a beef with:
A financial institution, special counsel, or collection agency may not assess a fee under subdivision (2) to the department, county treasurer, or taxpayer.
Why should the collector have to eat the $10 cost? At a minimum, the collector should be able to go after the tax debtor for the fee. If debtor had complied with his, her, or its tax obligations, the $10 fee wouldn’t be necessary. And, since the collection is being done for the benefit of the county or department of revenue, why shouldn’t they be allowed to contract to foot the bill?
It’s a small thing, obviously, but I don’t see the reason for that sentence.
[tags]taxes, collections[/tags]
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