Vermont Setoff Debt Collection Act

The Setoff Debt Collection Act governs the collection of delinquent debts owed to government agencies by intercepting tax refunds otherwise payable to the debtor. It lets a creditor agency certify a debt to the state revenue department, which then applies the refund against the amount owed, transmits the proceeds to the agency, and provides an accounting so the debtor's obligation can be credited. The act also sets out the procedural framework around that setoff — written notice of intent to the debtor, a protest and hearing process with defined time limits, administrative fees, rules of priority when multiple claims compete for the same refund, and confidentiality restrictions limiting agencies to using the disclosed taxpayer information solely for collection, with penalties for improper disclosure.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.