Gardner v. South Carolina Department of Revenue

This appeal concerns the 1995 Setoff Debt Collection Act (1995 Act) 1 and 1999 amendments 2 thereto. The 1995 Act permits a “claimant agency” to seize the South Carolina income tax refund of a taxpayer who has a delinquent debt with the claimant agency. We affirm in part, reverse in part, and remand.

FACTS

Plaintiffs/Respondents (Plaintiffs) brought this declaratory judgment action against Defendants/Appellants (Defendants) asserting Defendants, as claimant agencies, improperly seized their income tax refunds. Plaintiffs sought injunctive relief, the return of their seized tax refunds, and…