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Minn. House Won’t Stall Debit Card Tax Refunds

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(credit: CBS)

(credit: CBS)

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ST. PAUL, Minn. (AP) — Minnesota’s tax refunds will soon be converted from paper checks to plastic cards as a cost-saving measure.

For taxpayers who bypass the direct bank account deposit option, the Minnesota Department of Revenue will issue debit cards. For some lawmakers, that poses privacy worries.

The Minnesota House declined Saturday to halt the conversion while a study about data storage and debit card security is conducted. Republican Rep. Mary Liz Holberg says she’s worried that there won’t be adequate safeguards on electronic transactions when taxpayers spend their refunds.

Revenue officials have promised they won’t pry into spending data. And they say people can cash out their debit cards by taking them to a bank.

The House approved a study on the card program to be done by the end of the year.

(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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