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Bill to delay lien filings until taxpayer documents processed draws questions about enforcement and timing
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Summary
Delegate Weber’s HB 1080 would require the Department of Taxation to wait before filing liens until requested taxpayer information is processed (60 days after a request, per bill language), but members pressed on what constitutes "processing," potential priority loss in bankruptcy, and open-ended delays; the committee ultimately tabled the bill after debate.
Delegate Weber presented House Bill 1080, describing a constituent’s experience in which a memorandum of lien was filed while the taxpayer and the Department of Taxation were still exchanging K-1 documents and correspondence. Weber said the bill would require Tax to wait at least 60 days after requesting information before filing a memorandum of lien and would prohibit filing until all requested information had been processed; the existing 10-day notice requirement would remain.
Committee members, including Delegate Anthony and Uber Chair Watts, questioned whether the delay could allow bad actors to place other liens and cause the Department of Taxation to lose priority in bankruptcy or collections. Members also asked for a clearer definition of what "processing" means and when the clock would start. The department representative (Mr. Savage) said the department typically does not act as quickly as the statute allows and had no administrative objection to removing the 60-day explicit requirement in favor of a processing requirement.
After discussion and consideration of a friendly amendment to strike the 60-day provision, the subcommittee moved to lay HB 1080 on the table; the chair announced the bill had been tabled (transcript records "The, bill has been tabled by a vote of 73").
