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County treasurer issues update on Incline tax refund



As the result of a challenge lodged last week in district court by a group of Incline Village/Crystal Bay taxpayers concerning the applicability of a legislative change, the rate of interest to be paid on court-ordered property tax refunds is currently in dispute.

The taxpayer challenge to the treasurer’s interpretation of the statute was filed in district court to force the treasurer to continue to pay interest at 6 percent annually, regardless of the statutory rate change made by the Nevada Legislature.

Washoe County Treasurer Tammi Davis says that “In order to comply with the law, interest should be paid at the rate of 0.50 percent per month from the time of the overpayment through June 30, 2011, then at the rate of 0.25 percent per month from July 1, 2011 until the overpayment is refunded.”

”While I anticipate that the court will confirm our process, because of the uncertainty this causes, the only prudent option is to suspend the calculation and issuance of interest payments until the matter is resolved,” says Davis. She stresses that the tax refund process itself will proceed and tax refund checks will continue to be issued as they are completed. The treasurer’s staff continues to work diligently toward completing the refunds by the court-imposed August 2013 deadline.

NRS 361.486 currently reads, in part, that ”interest must be paid on an overpayment of the taxes imposed by this chapter at the rate of 0.25 percent per month, or fraction thereof.” Before the change, which was effective July 1, 2011, the rate was set at 0.50 percent per month.

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