The Municipal Association of SC operates the Setoff Debt Collection Program under a 1992 amendment to the Setoff Debt Collection Act. Every December, the program compiles a database of delinquent accounts and debts owed to its participating municipalities. The Municipal Association then submits this information to the SC Department of Revenue.
From there, DOR matches the claims list with refunds due to taxpayers. When matches exist, DOR sets off the debt, notifies the taxpayer of this and forwards the amount collected to the Association. The Association, in turn, forwards the amount collected, minus a $25 administrative fee per offset, to the entities that made claims. The Department of Revenue also collects $25 from the debtor for every successful setoff. These collection costs are charged in addition to the original debt amount.
Learn more about the Setoff Debt Collection Program, including requirements for participation and mandatory training sessions.