Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

mahatmakanejeeves

(56,884 posts)
Wed Jan 29, 2014, 11:17 AM Jan 2014

Ebbin’s Paper Check Tax Refund Bill Advancing Through GA

Ebbin’s Paper Check Tax Refund Bill Advancing Through GA

by Ethan Rothstein | January 28, 2014 at 11:30 am | 220 views | 32 Comments

A bill restoring Virginians’ ability to receive their tax refunds in paper check form could be on its way to pass the General Assembly this session.

The legislation, introduced by Sen. Adam Ebbin (D-30), passed the state Senate Jan. 20 by a unanimous 38-0 vote — the Senate is missing two votes until new Lt. Governor Ralph Northam and Attorney General’s Mark Herring’s seats are filled via special election — and is waiting to be considered by the House of Delegates Finance Committee.

As of January 2013, the state started only doling out tax rebates via direct deposit or a debit card, which comes with associated costs, like ATM and transaction fees. The Senate Finance Committee voted to abolish the debit card option altogether if the bill is signed into law.

“Taxpayers deserve the convenience of receiving their refunds in the form they prefer,” Ebbin said in a press release after the bill passed the Senate. “By contrast, the debit card system was fraught with fees and was not consumer-friendly. Taxpayers were even charged for withdrawing funds from an in-network ATM. I’m glad the Senate recognizes the need for reform.”


Among the comments was this one, with which I agree completely:

Neighbor > Tower Man • 21 hours ago

That the state senate voted 38-0 to get rid of them is really a testament to how big of a disaster the whole debit card program was. The system was a boondoggle for a private corporation to make money off the Commonwealth's citizens. Read the news reports from last year if you don't know what I'm talking about: fees charged for calling customer service, monthly account fees if there was no card activity in 30 days, etc. Some of these were considered to be "erroneous" charges that were reversed when people complained. But how many people didn't complain to the right parties to get their money back? Why it was implemented in the first place should be subject to intense scrutiny. Just like the related terrible decision to end free e-filing. Corporations don't agree to provide these things out of a sense of civic duty.


That comment got this response:

Thes > Neighbor • 21 hours ago

People who can't do direct deposit are generally poorer, less financially sophisticated, and otherwise disadvantaged. The debit card system preys on their limitations. Systems like this to take advantage of people on the edge of society occur all too often. Here's another example of soaking the poor and disadvantaged in Virginia, with an even more helpless population -- families of prisoners. New FCC rule caps long-distance phone rates from prison


Please see this related thread at DU:

In Texas, Toll Collection Outsourced To Payday Lender

Virginia income tax refunds

The proposal for the 2012 tax year (that is, the one for which taxes were due on May 1, 2013) was that refunds would be issued on a debit card rather than with a paper check, for those who do not have direct deposit. I see they want to do that this year too.

Virginia Tax Refund Debit Card
http://www.tax.virginia.gov/site.cfm?alias=refunddebitcards

What is the Virginia Tax Refund Debit Card?

The Virginia Tax Refund Debit Card is a MasterCard® debit card that gives you easy access to your tax refund. The Commonwealth has contracted with Xerox State and Local Solutions, Inc., to use their Go Program® to manage the Virginia Tax Refund Debit Card program.

The 2013 General Assembly approved language that requires income tax refunds to be issued by direct deposit or on a prepaid debit card as a cost savings measure for the Commonwealth. Paper checks are no longer an option for receiving your tax refund.
....

Please review the complete schedule of fees so that there are no surprises.


Welcome to the Go Program®
https://www.goprogram.com/goedcclient/

With your new debit MasterCard®, you join an elite group of cardholders who receive funds through the Go Program®.


See? I'm not getting screwed. I'm among the elite.
Latest Discussions»Region Forums»Virginia»Ebbin’s Paper Check Tax R...