2023 Rhode Island General Laws › Title 44 - Taxation › Chapter 44-30.1 - Setoff of Refund of Personal Income Tax › Section 44-30.1-3. - Collection of debts by setoff.

§ 44-30.1-3. Collection of debts by setoff.
Within a time frame established by the division of taxation, the claimant agency shall supply the information necessary relative to each debtor owing the state money, and further, shall certify the amount of debt or debts owed to the state by each debtor. Upon receiving notice from the claimant agency that a named debtor owes past-due support, delinquent court costs, fines, or restitution or benefit overpayments and interest owed, has obligations owed as described in § 44-30.1-1(g), cash assistance benefit overpayments, medical assistance benefit overpayments, or medical assistance cost share arrearages, the division of taxation shall determine whether any amount, as a refund of taxes paid, is payable to the debtor, regardless of whether the debtor filed an income tax return as a married or unmarried individual. If the division of taxation determines that any refund is payable, the division of taxation shall set off the past-due support, delinquent court costs, fines or restitution or benefit overpayments and interest owed, the obligation owed, cash assistance benefit overpayments, medical assistance benefit overpayments, or medical assistance cost share arrearages, against the debtor’s refund and shall reduce the debtor’s refund by the amount so determined. The division of taxation shall transfer the amount of past-due support, delinquent court costs, fines or restitution, or benefit overpayments and interest owed, obligation owed, cash assistance benefit overpayments, medical assistance benefit overpayments, or medical assistance cost share arrearages, set off against the debtor’s refund to the claimant agency or in the case of the United States Department of Education or other out-of-state agencies, to the Rhode Island division of higher education assistance as its agent, and in the case of education loans held by the Rhode Island Student Loan Authority (RISLA) for itself or as agent for another out-of-state education loan agency and which education loans are not guaranteed by the Rhode Island division of higher education assistance or another guarantor, to RISLA. The pendency of judicial proceedings to contest the setoff shall not stay nor delay the setoff and transfer of refunds to the claimant agency. If the amount of the debtor’s refund exceeds the amount of the past-due support, delinquent court costs, fines, or restitution or benefit overpayments and interest owed, obligation owed, cash assistance benefit overpayments, medical assistance benefit overpayments, or medical assistance cost share arrearages, the division of taxation shall refund the excess amount to the debtor. If in any instance with regard to the debtor the division of taxation has received notice from more than one claimant agency, the claim by the bureau of child support shall receive first priority, the obligations owed shall have second priority, and the delinquent court costs, fines or restitution shall have third priority, the benefit overpayments and interest owed the fourth priority and the cash assistance benefit overpayments the fifth priority, and medical assistance benefit overpayments, or medical assistance cost share arrearages the sixth priority.
History of Section.
P.L. 1982, ch. 111, § 1; P.L. 1983, ch. 102, § 2; P.L. 1984, ch. 83, § 1; P.L. 1984, ch. 241, § 1; P.L. 1986, ch. 126, § 1; P.L. 1988, ch. 208, § 2; P.L. 1999, ch. 170, § 2; P.L. 2004, ch. 595, art. 20, § 1; P.L. 2009, ch. 68, art. 16, § 6; P.L. 2009, ch. 318, § 1; P.L. 2015, ch. 141, art. 7, § 21.