The City of Manning has announced it will begin using the South Carolina Setoff Debt Collection Act to recover past-due amounts owed on inactive accounts, including unpaid fines, business license fees, and other delinquent debts.
Under the state law, municipalities and other government agencies may collect unpaid debts by offsetting them against a debtor’s South Carolina income tax refund. Beginning Sept. 22, 2025, the city mailed notices to the last known addresses of account holders with inactive accounts, informing them of the amount owed and their right to protest the debt. Account holders have until Oct. 15, 2025, to pay any outstanding balance. After that date, the unpaid amount will be forwarded to the South Carolina Department of Revenue (SCDOR) for collection through the taxpayer’s 2025 state income tax refund.
The Setoff Debt Collection Act authorizes “claimant agencies,” such as municipalities, to report debts to the SCDOR. If the debtor is owed a state tax refund, the department withholds the amount of the debt and transfers it to the agency. The SCDOR adds a $25 administrative fee per debt, which is paid by the debtor.
By law, debtors are notified in writing at least 30 days before a setoff request is made and have the right to file a written protest disputing the validity of the debt. Each agency must appoint a hearing officer to handle such protests. If an error is found, the agency must issue a refund, including the administrative fee.
Eligible debts include delinquent utility bills, property taxes, court fines, tuition, and other amounts owed to state or local government entities. While the act provides for due process through written protest, it does not include a hardship provision based on a debtor’s financial circumstances.
Residents with questions about the program or their account status may contact Kathy Hodge at (803) 435-0425.
