Las Vegas Sun

May 2, 2024

State controller gets OK to go after debtor bank accounts

CARSON CITY — State Controller Ron Knecht has received legal clearance to attach the bank accounts of people and companies that owe the state millions of dollars in unpaid taxes, fines and fees.

The state Attorney General’s Office says the controller must send a notice and demand letter to banks where individuals or companies have accounts. The controller does not have to go through the judicial process, as do others trying to collect debts.

Knecht said this gives the state more power, and his office intends to use it. He estimated about $10 million to $12 million is collectible.

State agencies try to collect debts on their own, but when they fail, the account is turned over to the Controller’s Office.

C. Wayne Howle, chief deputy attorney general, said in a June 20 legal opinion that the law provides garnishment of a bank accounts.

The controller must make a notice and demand within four years of the debt being incurred. The person who owes the money also must be given a chance by the state agency involved to challenge the debt or how much money is owed.