Garnishment of state tax refunds.

Authors: Representative Casey Cox

Co-authors: Representative Gregory Steuerwald, Representative Thomas Dermody, Representative Edward DeLaney

Sponsors: Senator Brent Steele, Senator John Broden


Provides that if a debt has been reduced to a judgment in Indiana and the judgment has not been satisfied, set aside, or discharged in bankruptcy, the judgment creditor may garnish a state tax refund otherwise due to the debtor. Specifies the procedures that the judgment creditor must follow in obtaining the garnishment from the department of state revenue. Allows a writ of garnishment to be electronically filed with the department of state revenue. Excludes from garnishment debt subject to a repayment plan if the repayment plan has not been breached. Exempts 50% of a joint tax refund from garnishment if there is no objection to the garnishment, and permits exclusion from garnishment that portion of a tax refund attributable to a spouse of the debtor who is not obligated to pay the debt.