Blue Earth County participates in a statewide program, Revenue Recapture, that intercepts or offsets part or all of a state tax refund or other payment to collect a debt that the taxpayer owes to a government agency or other authorized creditor. Revenue Recapture is not an alternative payment method for your taxes. There is an additional processing fee that is charged through the recapture process.
Essentially, what Revenue Recapture does is intercepts refunds or payments that would normally be made to a taxpayer and instead uses those funds to pay debt that the taxpayer owes.
If the county is participating in Revenue Recapture, it will notify the taxpayer in writing at his or her last known address. The notice will explain what debt is being collected, the basis for the claim, and other information.
Revenue Recapture may be used to collect debts from the following refunds and payments:
Individual income tax refunds
Property tax refunds
Political contribution refunds
Lottery winnings of $600 or more
Sustainable forest tax payments
Agencies that may use the Revenue Recapture Program include:
University of Minnesota
Minnesota district courts
Cities, including for public library debts
Government owned hospitals and Regions Hospital
Agencies responsible for child support enforcement
Agencies that administer low-income housing programs
Licensed ambulance services
The Minnesota House of Representatives reports that in Minnesota in 2010, there were 226,754 accounts totaling over $78 million that were recaptured from individuals’ tax refunds and were used to pay money they owed to the government.