AB 273

Under current law, the Department of Revenue (DOR) makes payments to any

taxation district that certifies to DOR that the most recent equalized value of the

taxation district's property is greater than it should be because of a clerical,

arithmetic, transpositional, or similar error, and that the amount of the

overvaluation represents 10 percent or more of the taxation district's equalized value

in the year prior to the year in which the error occurred. The taxation district uses

the payments to make loans to persons who own property in the taxation district and

who paid more property taxes than they should have as a result of DOR's error. The

maximum loan amount would be equal to the erroneous increase in the person's

taxes. The loan amount would be collected by the state as a special charge against

the taxation district for the year following the year in which DOR's error occurred.

Under this bill, DOR must make the payments if the overvaluation represents

7.5 percent or more of the taxation district's equalized value in the year prior to the

year in which the error occurred. In addition, if property tax bills have not already

been distributed to property owners, DOR will make one payment to the taxation

district and, instead of making loans to individual taxpayers, the taxation district

will use the payment to reduce the property taxes that would otherwise be imposed

as a result of the error.