Debt Setoff returns $7.8M to counties in ‘06

• 2006 Debt Setoff Clearinghouse statistics

Local governments participating in the N.C. Debt Setoff Clearinghouse realized another banner year in 2006. The program set a new record, returning to local governments more than $10.5 million, over $7.8 million of which went to 83 counties.

The Debt Setoff Clearinghouse is sponsored by the NCACC and the North Carolina League of Municipalities. The clearinghouse allows local governments to submit any outstanding delinquent debt or debts (totaling $50 or more) through the clearinghouse to the Department of Revenue to attempt to offset delinquent debts against individual income tax refunds.

In addition for 2006, education lottery winners of $600 or more are checked to ensure they do not have debts owed to local governments prior to any prize money being awarded. The regional award sites can access debt information that has been submitted by the Debt Setoff Clearinghouse to the Department of Revenue.

The clearinghouse has returned more than $26.2 million to local governments since its inception in 2002.

Gaston County led all local governments in 2006, depositing more than $1.4 million in matched debts.

Counties and entities interested in participating should visit the debt setoff Web site at www.ncsetoff.org and complete the online participation form. The busiest part of the year for taxes is between now and April, when taxpayers are filing their returns for 2006, so counties should sign up as soon as possible to get the most from the program.

In addition, program administrators conduct four statewide workshops for local government officials each September. Dates and locations will be announced in the summer.