Business and Economics

House Approves Bill To Let Private Firms Seize Tax Refunds For Debts

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February 10, 2015 —

INDIANAPOLIS – The House passed a bill Monday that would the state take or reduce an individual’s tax return check to settle private debt.

Private firms would pay a fee for the service.

“This bill will increase revenue to the state or at least offset costs to the Department of Revenue,” Rep. Casey Cox, R-Fort Wayne, said. Cox also said that Michigan has had success with the same process.

House Bill 1358 allows companies such as banks, credit card company, service providers and other firms to seize a person’s tax refund – only after paying the state $8 to see if the debtor is getting a refund check.

“This bill in my opinion could create numerous efficiencies in the legal process potentially decreasing the legal cost to creditors and debtors,” Cox said. “I believe this bill will result in reduced post-judgment costs to both parties.”

The bill passed 95-3 and now moves to the Senate for consideration.


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