Utah Department of Administrative Services

Office of State Debt Collection

The Office of State Debt Collection (OSDC)  was organized in 1996 under the directive of the Utah State Legislature, Utah Code Annotated 63A-3-502.

Mission

Maximize receipt of money to the state of Utah by effectively managing and collecting state receivables.
 

Responsibilities

  • Collect and manage state receivables;
  • Develop consistent policies, procedures and guidelines for accounting, reporting, collecting,
    and writing off payments owed to the state;
  • Prepare quarterly and annual reports of the state's receivables;
  • Oversee and monitor state agencies' receivable programs to ensure that they follow
    established policies and procedures and that collection of accounts receivables is
    efficient.
 

Funding

The OSDC is funded with fees and interest approved in the annual appropriation act passed by the legislature. Section 63A-3-502 Utah Code authorizes the collection of the fees and interest from the citizen in addition to the original amount owed. The fees and interest are deposited into the State Debt Collection Fund as designated in 63A-3-505. In summary, the OSDC receives no state funding but is funded with dollars collected from Utah residents who owe money to the state.

 
The fees and interest authorized by law, 63A-3-502, and those actually being charged are presented below:

  • Fee to cover the administrative cost of collection;
  • Late penalty fee that may not be more than 10% of the account receivable; 
  • Interest charge that is:

    1. The postjudgment interest rate established by the courts, or
    2. Not more than 2% above the prime rate for accounts receivable for which not court judgment has been entered.

     

    Monies in the State Debt Collection Fund are used to offset systems, administrative, legal, and other collection costs. The fees are also used to provide training to state agencies. The post judgment interest is used to fund organized colletion programs in Utah District Courts.
     

    Statutes

     To find the statutes pertaining to the OSDC, Click Here

    Collection Vendors

    The Office of State Debt Collection contracts with outside collection vendors to collect some of the State's receivables. The Debt Collection office currently works with these vendors:
     

     

     

      

     

     

    Frequently Asked Questions

    Tax Refunds / Garnishments

    Q: Does the Office of State Debt Collection accept the Injured Spouse form?
     
    A: Yes. Complete and submit the OSDC Injured Spouse form and all additional forms and schedules as identified on the form. To access the Injured Spouse Form with instructions, Click Here 
     
    Q: A portion of my tax refund was garnished. How do I get the rest of the refund?
     
    A: The remainder of the refund will either be mailed to you or deposited in your bank account depending on how you filed to get your refund.

    Bankruptcy

    Q: Do I still owe my debt if I filed bankruptcy?
     
    A: Some accounts are not dischargable in bankruptcy.

    Making Payments

    There are several different methods to make payments to the Office of State Debt Collection.

    Payment Options

    • CASH - You can pay in cash by bringing exact change to our office in Salt Lake City.

       
    • MONEY ORDER - You can bring a money order to our office or mail it. Make it payable to OSDC. Write your name, the name on the account if it is not the same, and the account number on the money order.

       
    • CHECK - You can bring in a check or mail it. Make the check payable to OSDC. Write your name, the name on the account if it is not the same, and the account number on the check. 

       
    • CREDIT CARD - We can take credit cards over the phone at 801-538-9645 or in person at the office. To make regular monthly credit card payments, you can send in the Automatic Credit Card Form to the mailing address below, and we can start the process. 

       
    • ACH - We can automatically take a specified amount from your bank account each month. Send the Automatic Transfer Form to the mailing address below and we can start the process.

       

    By Mail

    Do NOT send cash through the mail. Please mail the payment (check or money order) to

     

    Office of State Debt Collection

    PO Box 141001

    Salt Lake City, Utah 84114-1001

     
     

    In Person

    Payments  (cash, check, money order, credit card) can be made in person at the Office of State Debt Collection, which is located in the State Office Building north of the Utah State Capitol on Capitol Hill in Salt Lake City.

     

    450 North State Street

    State Office Building, Suite 1135

    Salt Lake City, Utah 84114

     
    Free public parking is available on the east side of the Capitol Hill. Click here for directions. Enter the State Office Building through the main door on the south side, 2nd floor, and take an elevator to the 1st floor.
     
     
     

     

    Policies and Procedures

    To view the State of Utah Debt Collection Policies and Procedures, Click Here

    Overview of Accounts Receivable

    The management of accounts receivable of the state is a partnership between the agencies of the state and the entity who has caused an accounts receivable to be created on the state's books. The state in good faith has extended credit to the entity and the state has the expectation to be reimbursed for the services or goods that have been given and other actions that have been imposed upon the entity.

    The enforcement of revenue laws is an important part of state government's revenue collection operation. Revenues that are owed must be collected for the state to continue to function properly. Collecting revenues owed to the state provides dollars to fund beneficial state programs, ensures favorable borrowing rates because of high credit ratings and creates social justice.
     
    While the level of delinquent revenues is certain to increase during an economic downturn, the amount owed to the state at the end of a fiscal year is often more closely related to the state's attitude and policies regarding the collection of revenues and the effectiveness of the collection system than to the ability of the citizens to meet their liabilities.
     

    Revenue Enforcement Policy

    The state's written collection policy covers the collection of delinquent revenues. This policy, aimed at the enforcement of existing revenue laws, should be focused on known delinquents and that segment of the population that attempts to avoid paying their obligations altogether.

     In developing this policy, the state has two main goals:

    1) Maximize revenues through the aggressive pursuit of known and yet to be discovered delinquent entities.

    2) Maintain constituents' goodwill.

    The pursuit of the first goal can result in more stable cash flows and improved collection rates (the ratio of actual collections to anticipated collections). Because the pursuit of the first goal will often conflict with that of the second, it is important that the revenue collections functions are as efficient, effective, and as inexpensive as possible.

     

    General Policy Guidelines

    While the exact nature and tone of collection enforcement policy varies from agency to agency, general guidelines should focus on the following assurances:

    1) revenue collection policies will be carried out fairly and equitably;

    2) revenue collection policies will not cause individuals undue hardships, with special consideration given when appropriate; and

    3) penalties, interest charges, and other sanctions for nonpayment of debt owed to the state and others for whom the state has a responsibility to collect, will serve the interests of the state and encourage citizens to pay promptly.

     
    Statute of Limitations


    In most instances, no statute of limitations exists prohibiting collection of accounts receivable owed to the State of Utah. There are some statute of limitations that require the state to take a specific action within a specified period (lien property and perfect the lien within eight years, collect on bail forfeiture, etc.). If the action is not taken, the state will lose the opportunity to enforce payment of the debt through the attachment and sale of property, bond forfeiture, etc.

     
    Responsibilities of the OSDC

     

    The responsibilities of the OSDC are outlined in statute found in Chapter 63A-3-502(U.C.A.). These include:

    • Develop accounts receivable collection policies and procedures;
    • Provide technical assistance to agencies regarding the collection and management of accounts receivable and in association with the Division of Finance, provide uniform revenue recognition policies;
    • Write an inclusive receivables management and collection manual for use by all state agencies;
    • Create and/or coordinate a state accounts receivable database;
    • Monitor and analyze the receivables held by agencies; and
    • Prepare quarterly and annual reports of the state's receivables.
     
    Responsibilities of State Agencies

     

    State agencies are responsible for the following regarding the management of accounts receivable:
     
    • Utilize systems that are adequate to properly account for and report their receivables;
    • Report receivables, their age, collection status, and funding source to the OSDC quarterly;
    • Develop and implementiprocedures that adhere to the collection policies and guidelines established by the Attorney General and the OSDC. (U.C.A. 63A-3-501 and 63A-3-503);
    • Bill for and make initial collection efforts of its receivables up to the time the accounts must be transferred (U.C.A. 63A-3-501), and
    • Transfer collection responsibilities to the OSDC or its designee according to time limits established by the OSDC (U.C.A. 63A-3-501)
     
    To view the State of Utah debt collection policies and procedures, click here
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