Tax Administration Policy - Returned Check Charge
ORS 30.701(5) allows a payee to recover from the maker of a dishonored check a reasonable fee representing the costs of handling and collecting on the check. The total fee for any single check may not exceed $35.
The Revenue Division (“Division”) will charge a returned check fee of $35 on every check that is returned by a bank as unpaid. The check may be unpaid for any number of reasons, including, but not limited to, insufficient funds in the account, the account was closed, or the banking information submitted was incorrect. This fee represents the costs of handling and collecting the dishonored check.
This returned check charge will not be waived unless the reason for the return from the bank was that the account was closed and the Division did not cash the check within 60 days of the postmark of the check and accompanying document(s).
If remedy through the courts is required to obtain payment of a returned check, additional charges as allowed by ORS 30.701(1) will be included in the total amount sought from the payee of the dishonored check. Any returned check charge paid will be credited against these additional charges as required by law.
03/17/2023 Thomas Lannom
Revised: 2004, July 2009, September 2020, March 2023