Collection costs for debts owed to the state.

WORKING DRAFT
2013
STATE OF
WYOMING
13LSO-0508

HOUSE BILL
NO.

HB0218

Collection costs for debts owed to the state.

Sponsored by:
Representative(s) Burkhart and Senator(s) Hicks

A BILL

for

AN ACT relating to
the collection of debts due the state or other governmental entities; providing a fee for collection costs when the state or governmental entity employs a collection agency to recover debts due the state; amending existing statutes;
and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 2
‑
10
‑
104(c), 9
‑
1
‑
415(a), 16
‑
4
‑
502(a), 16
‑
6
‑
112(a)(
i
) and (ii), 29
‑
9
‑
101, 31
‑
2
‑
402(d), 31
‑
18
‑
707, 39
‑
13
‑
108(b)(iv
) and
(d)(vi)(M), 39
‑
1
4
‑
103(c)(iii), 39
‑
14
‑
108(e)(iv) and
(xiv), 39
‑
14
‑
203(c)(ii), 39
‑
14
‑
208(e)(xiv), 39
‑
14
‑
303(c)(iii), 39
‑
14
‑
403(c)(iii), 39
‑
14
‑
408(e)(xiv), 39
‑
14
‑
503(c)(iii), 39
‑
14
‑
508(e)(xiv), 39
‑
14
‑
603(c)(iii), 39
‑
14
‑
608(e)(xiv), 39
‑
14
‑
703(c)(iii), 39
‑
14
‑
708(e)(xiv), 39
‑
15
‑
103(c)(iv), 39
‑
15
‑
106(g)(ii),
39
‑
15
‑
107(b)(iv) and (x), 39
‑
15
‑
108(c)(viii)(B)
and
(xii), 39
‑
16
‑
103(c)(vii), 39
‑
16
‑
105(a)(vii)(A), 39
‑
16
‑
1
07(b)(v), 39
‑
16
‑
108(c)(v), (vi) and
(e), 39
‑
17
‑
106(e)(iii)(C), 39
‑
17
‑
206(k)(iii)(C), 39
‑
22
‑
108(c)(iii) and 41
‑
13
‑
104(a) are amended to read:

2
‑
10
‑
104.

Probate court to determine; discretion allowed; presumption of correctness.

(c)

If the probate court finds that the assessment of penalties
,

and
interest
and collection fees
assessed in relation to the tax is due to delay caused by the negligence of the fiduciary, the court may charge the fiduciary with the amount of the assessed penalties and interest
and collection fees
.

9
‑
1
‑
415.

Collection of debts due the state; discharge of uncollectible debts.

(a)

Except as provided in subsections (e) and (f) of this section, any office or agency of the state may use the services of a collection agency licensed in Wyoming to assist in the collection of debts due the state or any state office or agency.
Any office or agency of the state
using a collection agency as provided in this section may add a reasonable fee, payable by the debtor, to the outstanding debt for the collection agency fee incurred or to be incurred. The amount to be paid for collection services shall be left to the agreement of the office or agency and its collection agency or agencies, but in no case shall a contingent fee exceed twenty-five percent (25%) of the unpaid debt per account.

16
‑
4
‑
502.

Collection of debts due a governmental entity; discharge of uncollectible debts.

(a)

The governing body of any governmental entity may authorize the use of the services of a collection agency licensed in Wyoming to assist in the collection of debts due the governmental entity.
Any office or agency of the state using a collection agency as provided in this section may add a reasonable fee, payable by the debtor, to the outstanding debt for the collection agency fee incurred or to be incurred. The amount to be paid for collection services shall be left to the agreement of the office or agency and its collection agency or agencies, but in no case shall a contingent fee exceed twenty-five percent (25%) of the unpaid debt per account.

16
‑
6
‑
112.

Contractor's bond or other guarantee; when required; conditions; amount; approval; filing; enforcement upon default.

(a)

Except as provided under W.S. 9
‑
2
‑
1016(b)(xviii), any contract entered into with the state, any county, city, town, school district or other political subdivision of the state for the erection, construction, alteration, repair or addition to any public building or other public structure or for any public work or improvement and the contract price exceeds seven thousand five hundred dollars ($7,500.00), shall require any contractor before beginning work under the contract to furnish the state or any political subdivision, as appropriate, a bond or if the contract price is one hundred fifty thousand dollars ($150,000.00) or less, any other form of guarantee approved by the state or the political subdivision. The bond or other form of guarantee shall be:

(
i
)

Conditioned for the payment of all taxes, excises, licenses, assessments, contributions, penalties
, allowable collection fees
and interest lawfully due the state or any political subdivision;

(ii)

For the use and benefit of any person performing any work or labor or furnishing any material or goods of any kind which were used in the execution of the contract, conditioned for the performance and completion of the contract according to its terms, compliance with all the requirements of law and payment as due of all just claims for work or labor performed, material furnished and taxes, excises, licenses, assessments, contributions, penalties
, allowable collection fees
and interest accrued in the execution of the contract;

29-9-101.

Lien
of state on realty of debtor.

The amount of every account audited, adjusted and found due to the state including penalties
, collection fees
and interest is a lien upon the real property of the person charged with the debt. The lien shall be in effect from the time suit commences for the recovery of the debt.

31
‑
2
‑
402.

Registration selling agents; application for registration.

(d)

Except as hereafter provided, every person who owns or uses a snowmobile which will be operated within the state of Wyoming shall, for each snowmobile so owned or used file or cause to be filed each year beginning July 1, with any designated registration selling agent, an application for registration of the snowmobile which shall be in writing in duplicate. The application shall state the name and address of the owner and the name of the applicant and describe the snowmobile, including make, model, any identifying serial numbers located on the snowmobile and whether the snowmobile will be operated for private or commercial use. At the time of application, the applicant shall also present proof in a form approved by the department of revenue that all sales or use tax due on the snowmobile have been paid. Any person who knowingly presents a false or fraudulent statement of proof is subject to the provisions of W.S. 6
‑
5
‑
303, in addition to any penalties
,

and
interest
and collection fees
due for nonpayment of sales or use tax on the snowmobile.

31
‑
18
‑
707.

Nonpayment of fees, taxes, penalties or interest.

All fees under chapter 18 of title 31, diesel fuel taxes, penalty or interest under title 39 or commercial vehicle registration fees under title 31 become delinquent if not paid as provided for by law from the date due. Delinquent diesel fuel taxes, penalties, interest
, collection fees
or commercial vehicle registration fees are a lien on all motor vehicles owned or operated in this state by the person liable for payment of the taxes, penalties, interest or fees. If any such taxes, penalties, interest or fees remain delinquent for thirty (30) days or if any vehicle subject to the lien is about to be removed from the state, the department or its authorized enforcement agent may seize and sell the vehicle subject to all existing liens and security interests held by others, at public auction upon notice to the owner and lienholder of record as provided by Rule 4 of the Wyoming Rules of Civil Procedure, and upon four (4) weeks notice of the sale in a newspaper published in the counties in which the vehicle is titled and registered. The department may bring suit in any court of competent jurisdiction to collect any delinquent fees or taxes, penalties
, collection fees
and interest under this section.

39
‑
13
‑
108.

Enforcement.

(b)

Interest. The following shall apply:

(iv)

Rail car
companies. If the taxes levied and payable to the department under W.S. 39
‑
13
‑
104(
g) are not paid on December 31 of the year levied, they shall become delinquent and shall bear interest at the rate of eleven percent (11%) per annum. If the taxes and interest due are not paid before February 1 following the levy, the department may collect them by distress and sale of any property belonging to the delinquent owner in the manner required of county treasurers, and the order of the department shall be sufficient authority therefor. The department may use any other remedy available for the collection of monies due
and may recover collection fees as provided in W.S. 9-1-415(a)
.

(d)

Liens. The following shall apply:

(vi)

Liens
on mineral production. The following shall apply:

(M)

All notice of tax liens shall be released within sixty (60) days after taxes, penalties
, collection fees
and interest due are paid or collected;

39
‑
14
‑
103.

Imposition.

(c)

Taxpayer. The following shall apply:

(iii)

Any person extracting valuable products subject to this chapter and any person owning an interest in the valuable products to the extent of their interest ownership are liable for the payment of the severance taxes imposed by this article together with any penalties
,

and
interest
and collection fees
.

39
‑
14
‑
108.

Enforcement.

(e)

Liens. The following shall apply:

(iv)

All
taxes, fees, penalties
,

and
interest
and collection fees
imposed under this article are an automatic and continuing lien in favor of the state of Wyoming. The lien is on all property in the state of Wyoming, real, tangible and intangible, including all after
acquired property rights, future production and rights to property, of any person severing minerals in this state and who is liable under Wyoming law for the collection, payment or remittance of the severance tax and corresponding penalty or interest as of the date such taxes, fees, penalties
,

or

interest
or collection fees
is due, and remains a lien until paid;

(xiv)

All notice of tax liens shall be released within sixty (60) days after taxes, penalties
, collection fees
and interest due are paid or collected;

39
‑
14
‑
203.

Imposition.

(c)

Taxpayer. The following shall apply:

(ii)

In the case of severance taxes, any person extracting crude oil, lease condensate or natural gas and any person owning an interest in the crude oil, lease condensate or natural gas production to the extent of their interest ownership are liable for the payment of the severance taxes together with any
penalties
,

and
interest
and collection fees
;

39
‑
14
‑
208.

Enforcement.

(e)

Liens. The following shall apply:

(xiv)

All notice of tax liens shall be released within sixty (60) days after taxes, penalties
, collection fees
and interest due are paid or collected;

39
‑
14
‑
303.

Imposition.

(c)

Taxpayer. The following shall apply:

(iii)

Any person extracting valuable products subject to this article and any person owning an interest in the valuable products to the extent of their interest ownership are liable for the payment of the severance taxes imposed by this article together with any
penalties
,

and
interest
and collection fees
.

39
‑
14
‑
403.

Imposition.

(c)

Taxpayer. The following shall apply:

(iii)

Any person extracting valuable products subject to this article and any person owning an interest in the valuable products to the extent of their interest ownership are liable for the payment of the severance taxes imposed by this article together with any
penalties
,

and
interest
and collection fees
.

39
‑
14
‑
408.

Enforcement.

(e)

Liens. The following shall apply:

(xiv)

All notice of tax liens shall be released within sixty (60) days after taxes, penalties
, collection fees
and interest due are paid or collected;

39
‑
14
‑
503.

Imposition.

(c)

Taxpayer. The following shall apply:

(iii)

Any person extracting valuable products subject to this article and any person owning an interest in the valuable products to the extent of their interest ownership are liable for the payment of the severance taxes
imposed by this article together with any
penalties
,

and
interest
and collection fees
.

39
‑
14
‑
508.

Enforcement.

(e)

Liens. The following shall apply:

(xiv)

All notice of tax liens shall be released within sixty (60) days after taxes, penalties
, collection fees
and interest due are paid or collected;

39
‑
14
‑
603.

Imposition.

(c)

Taxpayer. The following shall apply:

(iii)

Any person extracting valuable products subject to this article and any person owning an interest in the valuable products to the extent of their interest ownership are liable for the payment of the severance taxes imposed by this article together with any
penalties
,

and
interest
and collection fees
.

39
‑
14
‑
608.

Enforcement.

(e)

Liens. The following shall apply:

(xiv)

All notice of tax liens shall be released within sixty (60) days after taxes, penalties
, collection fees
and interest due are paid or collected;

39
‑
14
‑
703.

Imposition.

(c)

Taxpayer. The following shall apply:

(iii)

Any person extracting valuable products subject to this article and any person owning an interest in the valuable products to the extent of their interest ownership are liable for the payment of the severance taxes imposed by this article together with any
penalties
,

and
interest
and collection fees
.

39
‑
14
‑
708.

Enforcement.

(e)

Liens. The following shall apply:

(xiv)

All notice of tax liens shall be released within sixty (60) days after taxes, penalties
, collection fees
and interest due are paid or collected;

39
‑
15
‑
103.

Imposition.

(c)

Taxpayer. The following shall apply:

(iv)

The
vendor shall file a return within thirty (30) days after discontinuing or selling his business. His successor in business shall withhold from the purchase price enough money to pay the taxes, penalties and interest due on the outstanding amount of all credit, installment and conditional sales upon which the tax has not been paid until the time the former owner produces a receipt from the department showing that all taxes have been paid or a certificate that no taxes are due. If the successor fails to withhold from the purchase price the amount due and the taxes, penalty and interest are unpaid the original vendor and successor vendor are liable for the payment of the unpaid taxes, penalties
, collection fees
and interest.

39
‑
15
‑
106.

Licenses; permits.

(g)

The department may, after providing notice and an opportunity for a hearing, revoke the license of any vendor
violating any provision of this article and no license shall thereafter be issued to that person until the applicant has:

(ii)

Filed with the department all past due returns and has remitted in full all taxes, penalties
, collection fees
and interest due.

39
‑
15
‑
107.

Compliance; collection procedures.

(b)

Payment. The following shall apply:

(iv)

A person regularly engaged in the business of making loans or a supervised financial institution, as defined in W.S. 40
‑
14
‑
140(
a)(xix), that forecloses a lien or repossesses a motor vehicle on which it has filed a lien, or an insurance company that acquires ownership of a motor vehicle pursuant to a damage settlement, shall not be liable for payment of sales or use tax, penalties
, collection fees
or interest due under this section or W.S. 39
‑
16
‑
107 for that vehicle;

(x)

The department may enter into contracts with collection agencies for required collection services on
deficiencies of sales tax occurring under W.S. 39
‑
15
‑
101 through 39
‑
15
‑
111 from and after the reporting period of January, 1989. Any taxes collected by the collection agencies shall be distributed in accordance with W.S. 39
‑
15
‑
111(
b).
There is continuously appropriated from the general fund, to the department, an amount equal to the cost of collection under each contract but not to exceed fifty percent (50%) of the amounts collected by collection agencies, under a contract. The department shall expend those funds appropriated solely for collection agency services and may authorize in the contracts for those services that collection agency costs be deducted from funds collected and remitted to the department.

A reasonable fee for the collection fees incurred or to be incurred, in accordance with W.S. 9
‑
1
‑
415(
a), may be authorized in the contracts.

The contracts entered into under this paragraph shall not be for a term of more than two (2) years and shall be awarded only after competition;

39
‑
15
‑
108.

Enforcement.

(c)

Penalties. The following shall apply:

(viii)

The department may, after providing notice and an opportunity for a hearing, revoke the license of any vendor violating any provision of this article and no license shall thereafter be issued to that person until the applicant has:

(B)

Filed with the department all past due returns and has remitted in full all taxes, penalties
, collection fees
and interest due.

(xii)

If a vendor fails to file a return as required by this article, the department shall give written notice by mail to the vendor to file a return on or before the last day of the month following the notice of delinquency. If a vendor then fails to file a return the department shall make a return from the best information available which will be prima facie correct and the tax due therein is a deficiency and subject to
penalties
,

and
interest
and collection fees
as provided by this article;

39
‑
16
‑
103.

Imposition.

(c)

Taxpayer. The following shall apply:

(vii)

If any vendor discontinues his business or sells his stock of goods he shall make a final return and payment within thirty (30) days thereafter. His successor in business shall withhold from the purchase price an amount equal to any taxes, penalty
, allowable collection fees
or interest due until the time the former owner produces a receipt from the department showing that all amounts due have been paid or a certificate that no taxes are due. If the successor fails to withhold from the purchase price the amount due he is liable for same;

39
‑
16
‑
105.

Exemptions.

(a)

The following purchases or leases are exempt from the excise tax imposed by this article:

(vii)

For the purpose of exempting sales of services provided primarily to businesses, exemptions shall be as specified by the legislature and as follows:

(A)

A person regularly engaged in the business of making loans or a supervised financial institution, as defined in W.S. 40
‑
14
‑
140(
a)(xix), that forecloses a lien or repossesses a motor vehicle on which
it has filed a lien shall not be liable for payment of sales or use tax, penalties
, collection fees
or interest due under W.S. 39
‑
16
‑
108(b) and (c) for that vehicle;

39
‑
16
‑
107.

Compliance; collection procedures.

(b)

Payment. The following shall apply:

(v)

If any vendor discontinues his business or sells his stock of goods he shall make a final return and payment within thirty (30) days thereafter. His successor in business shall withhold from the purchase price an amount equal to any taxes, penalty
, allowable collection fees
or interest due until the time the former owner produces a receipt from the department showing that all amounts due have been paid or a certificate that no taxes are due. If the successor fails to withhold from the purchase price the amount due he is liable for same;

39
‑
16
‑
108.

Enforcement.

(c)

Penalties. The following shall apply:

(v)

If the taxes, penalty
, collection fees
and interest due under this section are unpaid within ten (10) days following service of notice an additional penalty of ten percent (10%) and interest as provided by paragraph (
i
) of this subsection shall be added by the department;

(vi)

The department shall promptly give written notice of all taxes, penalty
, collection fees
and interest due under this section by personal service or mail to the address as shown in the department records;

(e)

Tax sales. At any time following a delinquency the department with board approval may seize and sell at public auction any property owned by the delinquent taxpayer to pay all taxes, penalty
, collection fees
and interest due plus the cost involved in seizing and selling the property. Notice of the sale showing its time and place shall be mailed to the delinquent taxpayer at least ten (10) days prior to the sale. The notice shall also be printed in a newspaper of general circulation published in the county wherein the seized property is to be sold at least ten (10) days prior to the sale. If no newspaper is published in the county the notice shall be posted in three (3) public places ten (10) days prior to the sale. The
notice shall contain a description of the property to be sold, a statement of the entire amount due, the name of the delinquent taxpayer and a statement that unless the amount due is paid on or before the time of sale, the property or so much thereof as necessary shall be sold. The department, with board approval, shall give the purchaser a bill of sale for personal property or a deed for real property purchased at the sale. Any unsold property seized may be left at the sale at the risk of the delinquent taxpayer. If the monies received at the sale are in excess of the amount due the excess shall be given to the delinquent taxpayer upon his receipt therefor. If a receipt by the delinquent taxpayer is not given the department shall deposit the excess with the state treasurer as trustee for the delinquent taxpayer.

39
‑
17
‑
106.

Licenses; permits.

(e)

The department may require bonds, or accept in lieu of a bond a certificate of deposit meeting the requirements of paragraph (
vi
) of this subsection, under this article as follows:

(iii)

The bond shall be executed with a corporate surety duly licensed to do business in this state. In lieu of a corporate surety bond, the department may accept a cash bond made payable to the department. Any interest earned on a cash bond shall accrue to the licensee. The bond shall be:

(C)

Guarantee payment of delinquent taxes, penalties
, collection fees
and interest due under this article and the return of the license issued under this article;

39
‑
17
‑
206.

Licenses; permits.

(k)

The department may require bonds, or accept in lieu of a bond a certificate of deposit meeting the requirements of paragraph (
vi
) of this subsection, under this article as follows:

(iii)

The bond shall be executed with a corporate surety duly licensed to do business in this state. In lieu of a corporate surety bond, the department may accept a cash bond made payable to the department. Any
interest earned on a cash bond shall accrue to the licensee. The bond shall be:

(C)

Guarantee payment of delinquent taxes, penalties
, allowable collection fees
and interest due under this article and the return of the license issued under this article;

39
‑
22
‑
108.

Enforcement.

(c)

Penalties. The following shall apply:

(iii)

Taxes due together with interest, penalties
, collection fees
and costs shall be collectible by the department by appropriate judicial proceedings;

41
‑
13
‑
104.

Application for certificate; issuance of certificate and assignment of number; conformity with federal numbering system; expiration and renewal of certificate; transfer of ownership; duplicate certificate; manufacturer and dealer certificates.

(a)

The owner of each motorboat requiring numbering by this state shall apply for a number with the department
or any place selling game and fish licenses on forms approved by the department. The application shall be signed by the owner and accompanied by the fee required by W.S. 41
‑
13
‑
109. At the time of application, the applicant shall also present proof in a form approved by the department of revenue that all sales or use tax due on the motorboat have been paid. Any person who knowingly presents a false or fraudulent statement of proof is subject to the provisions of W.S. 6
‑
5
‑
303, in addition to any penalties
, collection fees
and interest due for nonpayment of sales or use tax on the motorboat. Upon receipt of the application in approved form the department shall issue to the applicant a certificate of number stating the number awarded to the motorboat and the name and address of the owner. The owner shall paint on or attach to each side of the bow of the motorboat the identification number in such manner as may be prescribed by rules and regulations of the commission in order that it may be completely visible. The number shall be maintained in legible condition. The certificate of number shall be pocket size and shall be available at all times for inspection on the motorboat for which issued, wherever the motorboat is operated. If any motorboat is rented for less than one (1) day, the owner or his designee
may retain the certificate of number on shore if the certificate is readily available for inspection.

Section 2.

This act is effective July 1, 2013.

(END)

1
HB0218