2017 Indiana Code
TITLE 6. Taxation
ARTICLE 8.1. DEPARTMENT OF STATE REVENUE; TAX ADMINISTRATION
CHAPTER 9.5. Set Off of Refunds
6-8.1-9.5-3.7. Local unit claimant agencies; notice to debtor; right to protest; hearing; action to stay submission of debt; failure to comply with requirements
Effective 1-1-2018.
Sec. 3.7. (a) A unit of local government may not submit a debt for a set off of a tax refund under section 3(a)(2) of this chapter unless the unit of local government first complies with the requirements of this section.
(b) A unit of local government must send written notice to a debtor that the unit of local government intends to submit the debt owed by the debtor for the tax refund set off under this chapter. The notice must state substantially the following:
(1) The unit of local government's basis for the claim to the debt and set off.
(2) The unit of local government intends to submit the debt owed by the debtor for the tax refund set off under this chapter.
(3) The debtor has the right to contest the matter by filing a protest and request for hearing with the fiscal officer of the unit of local government.
(4) The time limits and procedures for protesting and requesting the hearing.
(5) A statement that the failure to protest and request a hearing within the required time will result in the debt being submitted for the tax refund set off under this chapter.
(6) A statement that in addition to the amount of the debt owed by the debtor, the total amount of the set off of the debtor's tax refund may include the following fees for processing the set off of the debtor's tax refund, as applicable:
(A) The collection fee described in section 10(a) of this chapter.
(B) One (1) or more local collection assistance fees described in section 10(b) of this chapter.
The notice required under this subsection must be made in the same manner as set forth in IC 4-21.5-3-1 for adjudicative proceedings.
(c) A debtor may protest a proposed tax refund set off by submitting a written objection to the fiscal officer of the unit of local government not later than thirty (30) days after the notice under subsection (b) was served on the debtor. The rules for computing a period of time under IC 4-21.5-3-2 apply.
(d) The fiscal officer of the unit of local government shall hold a hearing on a debtor's protest that is timely filed under subsection (c). The hearing must be conducted in an informal manner without recourse to the technical, common law rules of evidence applicable to civil actions in the courts. The debtor must be afforded the opportunity to respond to the written notice provided under subsection (b), present evidence and argument, cross-examine witnesses, and submit rebuttal evidence. At the conclusion of a hearing, the fiscal officer of the unit of local government shall issue a written decision on the debtor's protest that includes findings of fact and conclusions of law for all aspects of the decision.
(e) A debtor that disagrees with a written decision of the fiscal officer of a unit of local government may file an action in the circuit or superior court of the county in which the unit of local government is located to stay the submission of the debt owed by the debtor for the tax refund set off under this chapter. The court has jurisdiction in such an action and shall determine the matter de novo, with the burden of proof on the unit of local government to sustain its written decision.
(f) A unit of local government that fails to comply with the requirements of this section before submitting a debt for a tax refund set off under this chapter is liable to the debtor for the amount of any tax refund set off applied by the department for the debt to the claimant agency, including any collection fee.
As added by P.L.239-2017, SEC.27.
