Interest on claims of excessive assessment and for recovery of unlawful property taxes. (FE)

2. The assessment included real property improvements that did not exist on the date of the assessment.

3. The property is exempt from taxation.

4. The property is not located in the taxation district.

5. The taxation district made a double assessment of the property.

If the taxation district allows the claim, it pays the claimant the amount of property taxes collected and may include interest at the rate of 0.8 percent a month, computed from the date on which the person filed the claim.

Under current law, a person may also file a claim with the taxation district where the property is located alleging that the assessment of the person's property is excessive. If the taxation district allows the claim, it pays the claimant the amount of the excess and may include interest at the average annual discount rate determined by the last auction of six-month U.S. treasury bills before the filing of the claim per day for the period between the time when the tax was due and the date that the claim was paid. This rate is generally lower than the rate of interest paid on claims to recover unlawful property taxes.

This bill changes the interest rate for payments made on a claim to recover unlawful taxes so that it is the same as the payments made on a claim of excessive assessment.

Under current law, when a taxation district rescinds or refunds property taxes paid by a taxpayer in the district, the district may submit a form to the Department of Revenue to collect from each underlying taxing jurisdiction its proportionate share of the rescinded or refunded amount. However, that amount does not include interest paid by the taxation district on claims for excessive assessment or to recover unlawful property taxes. This bill allows the taxation district to collect from each underlying taxing jurisdiction its proportionate share of the interest paid on claims for excessive assessment or to recover unlawful property taxes.