Provides for a collection due process for levy or seizure by the Board of Tax Appeals (OR +$5,100,000 GF EX See Note)
Impact
The enactment of HB 559 would significantly alter existing procedures governing property seizures pertaining to tax debts. By requiring that taxpayers are informed of their rights before any property levy occurs, the legislation aligns with principles of fairness and transparency in governmental tax collection practices. This reform is expected to limit potential abuses of power by tax collectors and provide individuals with an opportunity to present their case for a hearing should they contest the claims against them.
Summary
House Bill 559 is aimed at reforming the procedures involved in the distraint of property due to unpaid taxes by establishing a clear due process for taxpayers. The bill mandates that no levy can be executed on an individual's property unless they have been notified in writing about their right to a due process hearing. This written notice must be delivered at least 30 days prior to any intended levy and should be comprehensible, detailing the unpaid tax amount and procedures available for appeal or alternatives to levy. These changes reflect an attempt to enhance taxpayer protections in the event of tax collection actions.
Sentiment
Overall, the sentiment surrounding HB 559 appears to be positive, particularly among advocacy groups concerned with taxpayer rights. Supporters argue that the bill reinforces protections for individuals facing potential loss of property due to tax delinquency, ensuring that these individuals are adequately informed and given an opportunity to respond. Nevertheless, some critics might express concerns regarding the administrative implications of these procedural requirements for tax collection agencies.
Contention
Potential points of contention related to HB 559 may arise from the balance it seeks to strike between taxpayer protections and the efficiency of tax collection processes. Stakeholders may debate the ramifications of delaying collection actions in the face of appeals and whether the additional step of providing due process might lead to increased administrative burdens or confusion within the tax collection system. However, the fundamental philosophy behind the bill is aimed at enhancing taxpayer awareness and mitigating the harsh impacts of tax levies.
Allows a taxpayer who is subject to any collection procedure for local sales tax, or whose request for a refund of such tax has been denied by a collector, to initiate a mandatory, binding, arbitration proceeding. (See Act) (RE SEE FISC NOTE LF EX)
Provides relative to the authority of local collectors to adjudicate local sales and use tax matters and the jurisdiction of the Board of Tax Appeals (OR SEE FISC NOTE GF EX)
Provides for the administration, disposition, enforcement, and adjudication of state and local taxes, fees, and receipts and for the Board of Tax Appeals. (gov sig) (EN NO IMPACT GF EX See Note)