Senator Kearney Introduces Legislation to Allow Prepaid Debit Cards for State Income Tax Refund

Columbus--State Senator Eric H. Kearney has introduced Senate Bill 365 to require the Ohio Department of Taxation to provide taxpayers the option of receiving their income tax refund in the form of a prepaid debit card. Currently, all state tax refunds are issued in the form of a check or direct deposit. This new option allows Ohioans to use their refund without having a preexisting debit card. 

"This prepaid debit card program will benefit those citizens that do not have a bank account for direct deposit, or for those who wish to avoid the hassle with paper checks and check cashing fees," said Senator Kearney. "They will also be able to use their prepaid debit cards in stores, online, over the phone, or anywhere that accepts debit cards." 

The tax commissioner will be responsible for establishing a program for the payment of income tax refunds by prepaid debit cards. 

Senator Kearney sponsored legislation (SB 194) in the 128th General Assembly to have income tax refunds deposited directly into a checking, savings or individual retirement account. The legislation was signed into law by former Governor Strickland on May 20, 2010. 

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