Plan for electronic tax levy pilot program advances

The state tax commissioner could electronically file levies against personal property under a bill advanced from general file Jan. 14.

LB33, introduced by Kearney Sen. Galen Hadley, would authorize the state Department of Revenue to contract with in-state financial institutions for an electronic levy pilot project. Hadley said the project represents a way for the department to use technology to lower administrative costs.

“Significant progress has already been made,” Hadley said, “but additional efficiencies can be achieved through a partnership with the private sector.”

The bill also makes a number of changes, including:
• allowing the department to waive the traditional three-year statutory lien period when a taxpayer has entered into an agreement to satisfy an overdue tax liability;
• repealing the individual income tax return checkoff for contributions to the Campaign Finance Limitation Cash Fund; and
• authorizing the imposition of a 25 percent penalty for filing a late tobacco products tax return.

A committee amendment, adopted 29-0, removed a provision that would have allowed financial institutions to levy against real property.

Senators voted to advance the bill on a 35-0 vote.