HB1497
To Add The Department Of The Military To The List Of Claimant Agencies For Purposes Of The Setoff Against State Tax Refunds; And To Amend The Definition Of "debt" For Purposes Of The Setoff Against State Tax Refunds.
AI-Generated Summary
This bill proposes amendments to Arkansas law regarding the setoff against state tax refunds. Specifically, it aims to add the Department of the Military to the list of "claimant agencies" eligible to participate in this setoff program. Additionally, the bill seeks to broaden the definition of "debt" for the purpose of these setoffs. This expansion of the "debt" definition includes specific fines imposed under certain sections of the Arkansas Code related to military matters. The objective is to allow the Department of the Military to recover certain debts owed to it by withholding these amounts from state tax refunds due to individuals. This change would empower the Department of the Military with an additional mechanism for debt collection. The bill's core function is to expand the scope of the state's tax refund setoff program.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill, if enacted, would be the Department of the Military of the State of Arkansas and potentially other state agencies that may benefit from expanded debt recovery mechanisms. The Department of the Military would gain an additional avenue to collect debts owed to it, such as fines or other financial obligations that fall within the newly defined scope of 'debt.' This could lead to improved fiscal health for the department by increasing its ability to recover owed funds.
Who Might Suffer?
The groups or entities most directly and negatively impacted by this bill would be individuals who owe debts to the Department of the Military, as defined by the expanded scope of the bill. These individuals could see their state tax refunds reduced or entirely offset to satisfy their outstanding financial obligations. This could include those who have incurred fines under the specified Arkansas Code sections related to military matters and have not paid them. The reduction in their tax refunds means less disposable income or fewer funds available for other immediate needs.