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S.F. No. 3517 - Modifying Refunds of Overpayments for State-Assessed Properties
Author: Senator Lyle Koenen
Prepared By: Eric S. Silvia, Senate Counsel (651/296-1771)
Date: April 12, 2016


S.F. 3517 modifies refunds based on overpayment of tax for railroad or utility property.  Under current law, the commissioner of revenue is responsible for assessing railroad and utility properties. If a property owner appeals the assessment to the Tax Court, and the Court determines that the subject property’s valuation is lower than initially stated, the owner is entitled to a refund of any overpayment of taxes based on the earlier assessment. The amount of the refund is charged to the taxing jurisdictions that imposed a levy on the subject property. 

This bill requires that if an owner is entitled to a refund for overpayment of taxes on railroad or utility property, the commissioner of revenue must pay the full refund within 30 days of receiving a copy of the order. Before June 30 of each year, the commissioner must then notify each taxing jurisdiction of the amount of judgments paid by the commissioner in the preceding 12-month period. Each taxing jurisdiction must then reimburse the commissioner in equal annual installments over the succeeding ten calendar years.

An amount sufficient to make the payments by the commissioner of revenue is annually appropriated from the general fund to the commissioner of revenue.

Effective the day for judgments entered after May 31, 2016.



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