HOUSE OF REPRESENTATIVES

150th GENERAL ASSEMBLY

HOUSE BILL NO. 17

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO STATE TAXES AND PRIORITY OF CLAIMS TO INTERCEPT OR REDUCE FUNDS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 565, Title 30 of the Delaware Code by making deletions as shown by strikethrough and insertions as shown by underline as follows:

§ 565. Priorities among requests to intercept or reduce refunds.

The Director of Revenue shall honor the claims for collection of debts owed to certain state agencies pursuant to § 545 of this title and requests to intercept refunds by other claimant governments pursuant to § 558(b) of this title in the following order:

(1) A refund intercept to collect unpaid taxes and additions to tax of this State,

(2) A claim pursuant to a notice of a political subdivision or school district of this State, with respect to property taxes owed to it,

(2) (3) A claim pursuant to a notice of a any other claimant agency of this State pursuant to § 545 if of this title, and

(3) (4) A request by a claimant government for intercept of a refund pursuant to § 558(b) of this title.

SYNOPSIS

This bill gives school and local government property taxes priority collection status over other claimant agencies when the collection is made by tax intercept reducing refunds.