State helping E.P. to collect on owed taxes

PROVIDENCE – The Rhode Island Division of Taxation is helping East Providence collect on overdue taxes.
Legislation approved by the General Assembly last year authorized the tax division to help collect debts owed to other government agencies and entities in the state, including cities and towns. The law allows the tax division to use its refund-offset authority.
One of the first municipalities to sign up this year was East Providence, where city finances are under control of a state-appointed budget commission.
As part of the agreement with the tax division, the city provides a list of its municipal tax delinquents. If the tax division’s computers find that a municipal tax delinquent is due a state tax refund, the tax division withholds at least a portion of the refund and provides it to the city to help cover the delinquency.
“We stand ready to offer this service to all of our cities and towns, and to other local and state agencies, especially during these challenging fiscal times,” said Tax Administrator David M. Sullivan.
So far this year, the tax division has completed $6.5 million in personal income tax refund offsets. &#8226