Owe money in Opp? That could cost you your tax refund

Published 9:11 am Saturday, November 21, 2015

Those who receive tickets in Opp or fail to pay their utilities could see their Alabama income tax refund docked.

The city of Opp and the Opp Utilities board agreed to enter into an agreement with Municipal Intercept Services.

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Last year, the state legislature passed an amendment allowing municipalities and counties to attempt to collect delinquent debts owed to them by collecting the debts from an individual’s state tax refund.

Through MIS, outstanding debts are submitted to the Alabama Department of Revenue.

ADOR will offset any state income tax refund by sending the payment to the city of Opp or the Opp Utilities Board.

“We will be able to garnish state taxes for old fines,” Mayor John Bartholomew said. “This can be speeding ticket, etc., or leaving us with an electric bill.”

Bartholomew said the cost to the city is $25 per individual.

However, the amount of the debt minus $25 processing fee will be subtracted from a refund matching the debtor’s Social Security Number.

“My understanding is once an account becomes a minimum of 60 days past due and exceeds $25, the debt can be submitted to MIS,” said Opp Utilities General Manager Stacey Parker. “The debt is attached to the person’s Social Security number. We pay a $25 fee to compensate MIS for collecting the debt. If the person gets a tax refund and owes a debt that is filed with MIS, that refund is paid toward the debt owed until the debt is paid in full.”

City Clerk Connie Smith said that this could only be utilized for those who file an Alabama income tax return.