We sent the letter to taxpayers who have debt that we're collecting or that a private collection agency is collecting to tell you about our collection-fee policy change.
 
Even though Oregon law authorizes us to pass collection fees to taxpayers, we've always paid those fees. ORS 293.231
 
Last year we paid $415,000 in collection fees.
 
When the Legislature looked at ways the state could save money, it identified this as one. Requiring debtors to pay collection fees is standard business practice.
 
As of October 1, 2011, taxpayers whose debts are collected by collection agencies will have to pay these fees.
 
 
 

Oregon law requires us to transfer a debt when the taxpayer hasn't made a payment on it in one year. There are some exceptions.
 
 
 

No. As long as you keep making payments on your payment plan until your debt is paid in full, you won't pay collection fees. If you miss a payment, however, we may transfer your account to a collection agency and the collection agency will add the fees to your debt balance.
 
 
 

Pay your account in full before October 1, 2011, even if we haven't sent your account to a collection agency.If you can't pay it in full—and we haven't sent your debt to a collection agency—set up a payment plan with us. As long as you make all of your payments on time, we won't send your debt to a collection agency.
 
 
 

Visit "How Much Do I Owe?" If you want someone to help you set up a payment plan, call 503-945-8200.
If we already sent your debt to a collection agency, contact the agency to make payment arrangements.
 
 
 

A collection agency sends a notice to you within one business day from receiving your debt. Someone from the collection agency may have tried to call you. Federal law prohibits them from leaving specific information on your voice mail.

We use these collection agencies:
 

• Account Control Technology 888-830-7770
• 
  Professional Credit Service 800- 972-1635

 
 
 

No. Your debt stays with the collection agency until you pay it off.
 
 
 

Currently, collection agencies don't report unpaid debt to credit bureaus.
 
 
 

Collection agencies may charge up to 42.9 percent of your debt amount. Debt includes tax, penalties, and interest.  
Should the collection agency issue a garnishment or lien to collect your debt, it may charge up to 66.67 percent of your debt.
 
What this means is, if your total debt (tax, penalties, interest) is $100, the most you would pay in collection fees is $66.67.
 
Collection agencies will add their fees to the full debt amount on accounts we send to them after September 30, 2011.
 
If a collection agency is already collecting your debt, it will add the collection fees to your outstanding balance starting October 1, 2011.
 
 
 

No.
 
 
 

We've sent approximately 38,000 accounts to private collection agencies.
 
 
 

If you have questions about this change or about other kinds of payment plans, call 503-378-4988 (Salem), or 800-356-4222 (toll-free from an Oregon prefix); or e-mail questions.Don't include confidential information in your e-mail because our e-mail service isn't secure.