Special Notice / Hearing: None
Vote Required: Majority
To: Honorable Board of Supervisors
From: Sandie Arnott, Treasurer-Tax Collector
Subject: Caltrecs Collection Program
RECOMMENDATION:
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Adopt a resolution authorizing a Memorandum of Understanding (MOU) with the California State Association of Counties Finance Corporation (CSAC) for the Tax Refund and Exchange and Compliance System (Caltrecs) debt offset program for the Treasurer-Tax Collector, for the term of December 15, 2021 through December 15, 2026, at no net County cost, to allow the Treasurer-Tax Collector to collect associated cost recovery fees for the Caltrecs Collection Service Program and distribute these fees to both CSAC and the State Franchise Tax Board (FTB), and waiving the competitive solicitation requirements for unsecured property tax debt collection services.
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BACKGROUND:
The San Mateo County Treasurer-Tax Collector collects Secured, Unsecured, and Supplemental Property Taxes. As of 2021, the Treasurer-Tax Collector currently has around 20,000 Unsecured Property Tax bills that are delinquent. San Mateo County desires to enter into this agreement with CSAC to participate in the Caltrecs program. Through this program, CSAC will act on behalf of the County as the clearinghouse agency to process delinquent debts.
DISCUSSION:
CSAC's Caltrecs program allows any local government agency to submit eligible delinquent debts through the Caltrecs clearinghouse to the California FTB Debt Offset Program. FTB will run a match file of the debtor's name and Social Security number against all taxpayers to determine if a personal income tax refund, lottery winnings, or state unclaimed property payment is due. If a match is found, the FTB offsets the refund for unpaid debts and submits these finds to the participating local agency.
Pursuant to the California Government Code 12419.8, the California State Controller (SCO), in conjunction with the FTB, is authorized to offset person...
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