SENATE BILL REPORT

SB 5244

BYSenators McDermott, McDonald, Gaspard, Lee and Hayner; by request of Department of Revenue

Authorizing service by certified mail, return receipt requested, of notices to withhold and deliver property due or owned by a taxpayer.

Senate Committee on Ways & Means

Senate Hearing Date(s):January 28, 1987

Majority Report:  Do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bauer, Bluechel, Cantu, Craswell, Deccio, Kreidler, Lee, McDonald, Owen, Rasmussen, Rinehart, Saling, Wojahn.

Senate Staff:William Bafus (786-7437)

                  February 20, 1987

AS PASSED SENATE, FEBRUARY 28, 1987

BACKGROUND:

The Notice and Order to Withhold and Deliver is the levy document routinely used by the Department of Revenue's Compliance Section to enforce payment on judgment liens.  At present, this notice must be personally served by the sheriff of the county in which the service is to occur or by an authorized representative of the Department of Revenue.  This results in travel costs for the Department when service must be made to a person, bank, employer or creditor of the delinquent taxpayer.

The Department has interpreted existing statute to include a "continuing" effect after service to attach future funds owed to the taxpayer until officially released.  The Department seeks language in the statute to confirm this interpretation.

SUMMARY:

Service of a Notice and Order to Withhold and Deliver via certified mail (return receipt requested) is authorized as an alternative to personal service.  The continuing nature of this levy is confirmed.

Revenue:    yes

Fiscal Note:      available

Senate Committee - Testified: Barney McClure, Department of Revenue