Pursuant to an agreement, effective September 1, 1995, between the Secretaries of the
Department of Budget and Management and the Department of Labor, Licensing and Regulation (DLLR), in accordance
with the provision of
3-302(b) of the State of Finance and Procurement Article, and the
Code of Maryland Regulations
17.01.02, the Central Collection Unit is authorized to certify to the Income Tax Division, Comptroller of
the Treasury, the names of those who are indebted to the State of Maryland/DLLR or any of its agencies.
Simply stated: any debt of one year old or greater, that has not already been transferred to the Central
Collection Unit and is not under current appeal and whose debtor has made little or no effort to repay, will
be certified for State income tax refund interception. Any State tax refund payment due to a claimant that has
an outstanding debt will be intercepted and applied to that debt in accordance with the agreement stated above.
The Maryland State Central Collection Unit (CCU) has oversight of this process and charges the debtor a ten
percent (10%) collection fee of any account certified for this interception.
Example: if an individual is entitled to a $1000 State tax refund and has a outstanding debt of $500 to the
State of Maryland/DLLR, $550 will be intercepted from the $1000. $50 will go the CCU, and $500 will go to
DLLR to repay the debt owed.
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