WeVote
Log In

Bill

Bill

HB 5412

AN ACT CONCERNING THE COLLECTION COSTS OF STATE TAXES AND FEES.

2025 Regular Session Introduced by Tina Courpas

HB 5412 requires state agencies to cover collection costs for unpaid taxes/fees, allows a 25% surcharge to offset costs, and limits total collections to 125% of original amount owed.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
#fees #finance #revenueandbonding #jointcommitteeon #stateagencies #taxation
0
WeVote Research Nonpartisan
Bill Summary · HB 5412

Bill Summary: HB 5412 - An Act Concerning the Collection Costs of State Taxes and Fees

Summary

HB 5412 is a bill that proposes changes to how the state of Connecticut collects and recovers costs associated with the collection of state taxes and fees. The main goals of the bill are to:

  1. Require state agencies to cover the full costs of collecting unpaid taxes and fees owed to the state.
  2. Allow the state to charge a collection surcharge on delinquent payments to help offset the costs of collection.
  3. Establish guidelines and limits on the collection costs that can be passed on to taxpayers and fee payers.

Key Provisions

  • Agency Cost Recovery: The bill requires all state agencies to cover the full administrative and legal costs incurred when collecting unpaid taxes, fees, fines, and other debts owed to the state. This includes the costs of sending notices, processing payments, and pursuing delinquent accounts through collections efforts.

  • Collection Surcharge: The bill authorizes the state to add a surcharge of up to 25% of the original amount owed on delinquent tax and fee payments. The surcharge would be used to reimburse the state for the costs of collection.

  • Limits on Collection Costs: The bill establishes that the total amount collected from a taxpayer or fee payer, including the original amount owed plus any surcharges or fees, cannot exceed 125% of the original amount. This is intended to prevent excessive costs from being passed on to individuals and businesses.

Impact

If enacted, HB 5412 would have several impacts:

  • State Revenue Recovery: The bill is expected to increase the amount of unpaid taxes and fees the state is able to collect, boosting overall state revenue.

  • Transparency in Costs: The bill aims to provide more transparency around the actual costs of collecting delinquent payments, rather than simply passing those costs on to taxpayers.

  • Potential Cost Burden: While the bill includes limits, some taxpayers and fee payers may still face higher total costs due to the collection surcharge, which could create a burden for individuals and businesses.

Overall, the bill represents an effort by the state to recover more of the costs associated with collecting unpaid financial obligations, while also establishing guidelines to prevent excessive charges to taxpayers and fee payers.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.