HB 388 — Income tax; revise local governmental entities that may collect debt by a setoff against a debtor's refund.

388 (As Sent to Governor) AN ACT TO AMEND SECTION 27-7-805, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF THE TERMS "CLAIMANT LOCAL GOVERNMENT," "LOCAL GOVERNMENT" AND "LOCAL"MEMBER GOVERNMENT"ORGANIZATION" 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;

(a) "Claimant local government" means counties* and* municipalities* local governments acting through their nonprofit member organizations with respect to the collection of any debt owed and finalized by law, ordinance, order or resolution.

For(b) purposes"Debtor" ofmeans thisany paragraphperson (a),owing counties and municipalities shall also include all corporations and other instrumentalities whose governing boards are comprised of a majoritydebt ofto membersany whoclaimant arelocal appointedgovernment. or elected by counties and/or municipalities.

(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 H.

388 *HR26/R1042**HR26/R1042SG* ~ OFFICIAL ~ G1/2 23/HR26/R104223/HR26/R1042SG PAGE 1 (BS\KW) (b)other "Debtor"debt meansregardless anyof personwhether owingthere ais debtan tooutstanding anyjudgment claimantfor localthe government.sum.

(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.

For purposes of this paragraph (e), countiescounty andor municipalitiesmunicipality shall also include alla corporationscommunity andhospital otherowned instrumentalitiesby whoseone governingor boardsmore arecounties, comprisedcities, oftowns, asupervisors majoritydistricts of members who are appointed or electedcombinations bythereof. counties and/or municipalities.

(f) "Member organization" means the Mississippi Association of Supervisors for counties,counties and community hospitals owned in whole or in part by one or more counties or supervisor districts, the Mississippi Municipal League for municipalities and community hospitals owned in whole or in part by one or more municipalities, or entities established through or contracted by these member organizations for the purpose of facilitating debt collection under this article.

(i) "Refund" means the Mississippi income tax refund which the department determines to be due a debtor.

388 *HR26/R1042**HR26/R1042SG* ~ OFFICIAL ~ 23/HR26/R104223/HR26/R1042SG PAGE 2(BS\KW) (i)(j) "Refund""Setoff" means the department's legal right to reduce the debtor's claim to a Mississippi income tax refund whichfrom the department determinesby toa bedebt duethe aclaimant local government properly establishes under this article which is owed by the 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.

388 *HR26/R1042**HR26/R1042SG* ~ OFFICIAL ~ 23/HR26/R104223/HR26/R1042SG ST: