Oregon-Davis to Go After Families’ Income Tax Refunds to Collect Unpaid Debt

Those owing money to the Oregon-Davis School Corporation may soon have it taken out of their state income tax refunds. The school board Monday approved an agreement for the Tax Refund Exchange and Compliance System.

Superintendent Bill Bennett said there’s about $25,000 in outstanding debt to the school corporation for things like textbook fees and damaged iPads. “This is kind of an alternative to going to small claims court or going through a collection agency, which we have done both of those in the past,” he told board members. “The nice thing about this program for our families, what it does is it allows us to get them money before they get an Indiana tax refund. It will not hurt their credit rating. It will not put any red flags there.”

Oregon-Davis is the second local school corporation to join the system this month, after Eastern Pulaski. The City of Knox, Town of Winamac, and Pulaski County have also been using the system.