§40-35.5  Assessment and collection of
service charges for dishonored payments.  (a)  Unless otherwise provided by
law or rules, every public accountant receiving revenue or other moneys on
account of the State shall assess and collect a service charge in the amount of
$25 for any remittance for payment that the public accountant receives that is
dishonored for any reason.  A public accountant shall require payment of the
full amount of the dishonored payment, plus the service charge in cash, by
certified or cashier's check, or by bank or postal money order.  The amount of
the service charge shall be deposited with the director of finance as a
realization of the general fund.



(b)  The service charge shall be enforced as
follows:



(1)  For charges due on dishonored checks written or
electronic funds transfers made for payment of any tax administered by the
department of taxation under title 14, the charges shall be nonwaivable
penalties and shall be made a part of the tax for which the payment was made in
the same manner as penalties are made part of the tax under section 231-39; and



(2)  For other dishonored payments, if payment of the
full amount of the dishonored payment plus the service charge is not made, the
public accountant shall refer the entire matter, including the service charge
due on the dishonored payment, to the department of the attorney general or a
collection agency bonded under chapter 443B for collection.



(c)  All penalties for dishonored payments
shall be debts due the State.



(d)  Penalties collected for dishonored
payments by the department of taxation pursuant to this section shall be
collected in the same manner as are taxes under chapter 231.  The penalty shall
be a realization of the general fund in the same manner as other penalties
collected by the department of taxation.



(e)  No interest shall be charged on any
penalty. [L 1981, c 45, §1; am L 1995, c 97, §1; am L 1997, c 177, §2; am L
2007, c 240, §1]