The Minnesota Department of Revenue has the authority to collect debts for other agencies. The department can also assess up to 25% of the amount referred in collection costs. View the statute (Minnesota Statutes, section 16D.11).
Breakdown of collection costs assessed
Collection fees are automatically added to a debtor's balance due when the department receives the debt.
- For debts referred on or after July 1, 2009 - The fee is 20%.
- For debts referred from January 1 through June 30, 2009 - The fee is 17%.
- For debts referred before January 1, 2009 - The fee was assessed in two increments:
- Fifteen percent was automatically added to the amount referred when the debt was received by the department.
- If the department has taken enforced collection action or referred the debt to a private collection agency, an additional 10% was added to the amount owed.
