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Council hears overview of TREX tax intercept program to collect unpaid local debts
Summary
County staff described how the TREX set‑off program partners with the state Department of Revenue to intercept tax refunds for unpaid municipal debts, noted required notice procedures, and discussed next steps for county participation.
County staff outlined how Boone County could participate in TREX, a clearinghouse program that works with the Indiana Department of Revenue to collect unpaid municipal debts by intercepting state tax refunds.
A county staff member described the program as a partnership under which a county or municipality submits unpaid debts to a clearinghouse; the state Department of Revenue attempts to match those debts to taxpayers receiving refunds and withholds amounts owed to the submitting jurisdiction. The county itself does not administer the offset; the Department of Revenue handles the matching and withholding. The county must send notice to affected individuals within 15 days of receiving notice that a refund is being withheld; individuals have 30 days to dispute the debt.
Staff noted there is no participation fee for the county other than postage and administering notices. The clearinghouse requires an MOU with the TREX association and an application to participate; staff said they would circulate the full list of debt types that can be submitted. The example list included animal violations, cemetery charges, demolition assessments, false alarm fees, fines, library charges, EMS fees, ordinance violations, parking tickets and property tax, among others.
Staff cited Clinton County as an example that has collected between $20,000 and $30,000 using the TREX approach. Council members asked staff to share the detailed list of eligible debts with the full council and to check whether current county processes and MOUs would need expansion.
