Share:
House Co-Sponsorship Memoranda
House of Representatives
Session of 2013 - 2014
Regular Session
MEMORANDUM
| Posted: | May 22, 2014 12:11 PM |
|---|---|
| From: | Representative Seth M. Grove |
| To: | All House members |
| Subject: | Creation of the Delinquent Tax Intercept Authority (DTIA) |
In the near future, I plan to introduce legislation to reduce the growing strain on Pennsylvania taxpayers and local governments. This strain is caused by outstanding and delinquent taxes, which leave the Pennsylvanians who’ve paid their taxes, paying an increasing bill for essential services through a growing tax burden. My plan to address this growing burden is to create an independent authority to assume the outstanding taxes owed to the commonwealth or local governments known as the Delinquent Tax Intercept Authority (DTIA). Structured similarly, to the United States Treasury’s Offset Program (TOP), which is an agreement between the states and the federal government to collect outstanding money owed in delinquent taxes. Under TOP, part of the agreement obligates the states to collect outstanding federal taxes by giving any state refunds to an individual to the federal government until the outstanding taxes are paid. The DTIA co-opts this to the local and state level creating a one stop clearing house for municipalities and the commonwealth to place their outstanding tax payments. This lowers the cost for the commonwealth and local governments in trying to acquire outstanding payments owed to them. The authority working in conjunction with the governor’s office and the United States Treasury Department collects outstanding payments from the federal tax returns of those with delinquent and outstanding taxes. Through this collection, the Delinquent Tax Intercept Authority will restore the general fund $75 million at a time our budget cannot afford to see delinquent taxes grow. In addition, for municipalities such as Philadelphia, they can expect to see $125 million restored to their budget by the authority collecting outstanding taxes owed to the city. Consequently, by collecting these delinquent taxes, the authority assists local governments as they see their revenue grow without placing an increased burden on Pennsylvanians who followed the law and pay their taxes. Finally, the authority by levying a surcharge on those who have outstanding taxes allows the commonwealth and local governments to receive the full amount of the delinquent returns without needing to finance the authority from our strained budget. The impact of this self-funding authority is to restore funds to our local governments, to reduce costs on delinquent tax collections for local governments and reducing the growing tax burden on law abiding Pennsylvanians. The authority acting as an efficient clearing house for outstanding tax collections restores tax revenue to the general fund and the budgets of local governments. Please join me in co-sponsoring this legislation by clicking on the link below. If you have any questions, please contact Susan Klock by phone at (717) 783-2655 or by email at sklock@pahousegop.com. |
||
| View Attachment | ||
Introduced as HB2292