Oregon Tax Return Garnishment Laws
Oregon State has a personal income tax that ranges from 5 percent to 9 percent. All individuals who earn personal income in Oregon must file annual tax returns. Chapter 18 of the Oregon Revised Statutes specifically permits the Department of Revenue to garnish a delinquent taxpayer's wages to collect unpaid taxes. Garnishment is a process where a creditor (in this case the Department of Revenue) gets a third party (the delinquent taxpayer's employer) to intercept the assets of the debtor (delinquent taxpayer). In most situations, creditors must obtain a writ of garnishment from a court to enforce a debt in this manner. However, the Oregon Department of Revenue can garnish administratively without obtaining a court order.
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Department of Revenue
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The Oregon Department of Revenue collects taxes on behalf of the Oregon government. It is an executive agency responsible for enforcing Oregon tax laws. These taxes include, among other taxes, personal income, property, corporate income, tobacco, inheritance and sales and excise taxes. It operates in a similar manner as the United States Internal Revenue Service but for Oregon taxes.
Tax Returns
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Oregon income tax returns are due on April 15 of each calendar year. Like federal income taxes, Oregon personal income taxes are progressive. That means the taxpayer pays a higher tax rate for higher income. As of August, 2010, individuals who earn up to $3,050 pay a 5 percent tax rate. Individuals who earn between $3,050 and $7,600 pay a 7 percent income tax rate. Finally, all individuals who earn more than $7,600 must pay a 9 percent personal income tax rate. If an individual fails to pay state taxes owed by April 15, the Department of Revenue assesses penalties and interest against the debt owed.
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Garnishment
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The Department of Revenue can order a delinquent taxpayer to withhold up to 25 percent of the delinquent taxpayer's wages. That process is called garnishment. The Department of Revenue is authorized by Oregon Revised Statute 150-18.385 to do so without obtaining a court order. For example, the Department of Revenue could order a delinquent taxpayer's employer to withhold $250 from a $1,000 paycheck until the tax debt plus interest and penalties is satisfied.
Warning
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Contact a qualified attorney licensed to practice in Oregon or other tax professional to find out what obligations, if any, you have with regard to Oregon tax return garnishment laws, which are subject to change.
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