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State Tax Levies (Alabama/Florida/Georgia)

Last Reviewed: November 2019

A levy is one method that the State may use to collect outstanding taxes owed by a credit union member.  The State may take money out of a member’s account, up to the total amount of the debt, assuming there is enough money to cover the debt. 

Print State Considerations (Alabama)

State Tax Levies: State Considerations (Alabama)

The Alabama Commissioner of Revenue is responsible for the collection of all delinquent state tax accounts for the State of Alabama.  The Department may proceed to collect delinquent tax debt by using several different enforcement methods, including a financial institution levy against a credit union.  The levy would require the credit union to send any funds being held in the member’s account(s) to the Office of Collections, up to the total amount of past due tax, penalty and interest amount.  No such levy made shall be more than 25 percent of the total wages or salary due the taxpayer.

Notice

Before a levy is sent to the credit union, the debtor/credit union member must have been notified of the amount owed at least 30 days before the levy is sent.

Child Support Lien Against Real/Personal Property

Under Alabama law, a civil action is available to either the parent/guardian or the Department of Human Resources. Section 30-3-190 et seq. allows the state Title IV-D agency shall file a notice of a lien against any real or personal property of any noncustodial parent who resides or owns property in this state and owes past due child support payments.  Importantly, a right of set-off trumps this lien for child support.

Print State Considerations (Florida)

State Tax Levies: State Considerations (Florida)

Although Florida has no income tax, other taxes owed can be enforced via levy.

The Florida Department of Revenue is responsible for the collection of all delinquent state tax accounts for the State of Florida.  The Department may proceed to collect delinquent tax debt by using several different enforcement methods, including a financial institution levy against a credit union.  The levy would require the credit union to send any funds being held in the member’s account(s) to the Office of Collections, up to the total amount of past due tax, penalty and interest amount.

Notice

Before a levy is sent to the credit union, the debtor/credit union member must have been notified of the amount owed at least 30 days before the levy is sent.

Child Support Lien Against Real/Personal Property

Under Florida law, If a parent owes past-due support, the Child Support Program may collect past-due support from financial institutions in which the parent has bank accounts, brokerage accounts or other liquid assets.

An action may only be initiated if the child support paid is less than 75 percent of the total obligation amount due and the past-due balance is greater than $600. The Child Support Program also ensures the parent has not filed bankruptcy and that a levy action has not taken place in the last six months.

The Child Support Program notifies the parent by certified mail of the action. The garnishee has 21 days from the date on the notice to object to the notice.

Print State Considerations (Georgia)

State Tax Levies: State Considerations (Georgia)

Under Georgia law, if a person should fail or refuse, on demand, to pay over the amount of the tax that he or she owes to the county collector, the county collector shall file a statement of the amount of the tax with the person so refusing, which shall operate as a notice for 15 days. If upon failure to pay or challenge after 15 days a writ of garnishment shall be served upon the party. The shares in a credit union are not exempt from garnishment.

Notice

Before a levy is effective on an account at the credit union, the debtor/credit union member must have been notified of the garnishment for 15 days. If they fail to respond with an objection, then the execution of the garnishment may occur.

Print Laws & Regulations

State Tax Levies (Alabama/Florida/Georgia): Laws & Regulations

Laws & Regulations (Alabama)

Laws & Regulations (Florida)

Laws & Regulations (Georgia)

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