Minnesota Moves Toward Debit Card Tax Refunds

Published On: 23rd April 2013

From the internet

In 2014, Minnesota taxpayers will receive their state income tax refunds via debit cards as opposed to paper checks. For some lawmakers, this poses privacy worries, especially for those taxpayers who prefer to bypass the direct deposit option.

On April 18, the Minnesota House declined to stop the conversion to debit cards while a study about the security of debit cards and data storage was conducted. There is a concern that there will not be enough safeguards for electronic transactions when taxpayers use the cards to spend their refunds.

Revenue officials have stated that they won’t pry into the spending data of taxpayers and that taxpayers can go to a bank and cash out their debit cards. However, it is possible to track activity and legislators believe that measures should be put in place to protect privacy rather than relying on the word of revenue officials.

The study being conducted must be completed by the end of the year.

It is believed that the Department of Revenue will save around $4.5 million each year by implementing the debit cards, making it a very important money saving measure for the state.

It is one that will provide taxpayers with a degree of convenience. In the meantime, the results of the study may influence what kind of legislature is put in place that protects the privacy of taxpayers.

Sources: http://minnesota.cbslocal.com/2013/04/20/minn-house-wont-stall-debit-card-tax-refunds/