Collection costs for debts owed to the state.

14LSO-0304.L1

FISCAL NOTE

	FY 2015	FY 2016	FY 2017
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Increase:
GENERAL FUND	309,000	309,000	309,000
HIGHWAY FUND	3,590	3,590	3,590

Source of revenue increase:

Collection fees added to debts collected by collection agencies for state agencies

Assumptions:

This bill would allow state agencies to recoup fees paid for the collection of debt from the debtor (up to 25% of the unpaid debt per account). These fees are currently paid to collection agencies from the proceeds of the amount collected by the collection agency.

The collection fees remitted to the collection agency from the Excise Tax Division for sales and use tax debts averaged $309,000 for FY2012 and FY2013.  This amount should remain constant as the fees are dependent upon the collection agency’s ability to collect the debt.

The Department of Transportation estimates a revenue increase of $3,590 per year to the State Highway Fund, based on an average of $121,689 of debt under collection for the last four years, an average success rate of 11.8% on collections of debt using collection agencies, and a 25% fee added to the successful collection of debt ($121,689 x 11.8% x 25%).

Prepared by:   Dean Temte, LSO       Phone: 777-7881

(Information provided by Kim Lovett, Dept. of Revenue; 777-5220:

Kevin Hibbard, WYDOT; 777-4026)