Property owners could recover certain tax overpayments through refunds or credits

County auditors would use several methods to refund or credit certain overpayments, including full refunds, future tax credits, and written installment plans. These methods concern taxes, assessments, or charges wrongly billed or collected because of a clerical error, after the required board or Tax Commissioner certification. For an overpayment above $25, a person who applies on time may require a full refund or a partial refund with the rest credited against future taxes. In other cases, the auditor may choose a refund, a credit, or a written installment plan. Under an installment plan, interest stops accruing when the plan is signed. The application must be made within 60 days after the person receives the board's or Tax Commissioner's certification. The bill's amendments to these refund rules would apply to overpayments required to be refunded or credited on or after this section takes effect.

County treasurers would handle certain current-tax overpayments using the refund or credit methods described in section 319.36. This concerns an overpayment of either half of current property taxes charged on the tax list. The treasurer must receive documentation the treasurer finds acceptable and determine that a clerical error caused the overpayment. The bill's amendments to these refund rules would apply to overpayments required to be refunded or credited on or after this section takes effect.

The Tax Commissioner would determine eligibility and calculate and certify tax-reduction factors for certain properties. This covers qualifying property in counties that had a reappraisal or triennial update in tax year 2023 or 2024. The property must qualify under the referenced tax-reduction rules, and the Commissioner must determine eligibility and certify a factor. For a qualifying 2023 county reappraisal or update, reductions would apply in 2025 for real property or 2026 for manufactured homes. For a qualifying 2024 reappraisal or update, they would apply in 2025 and 2026 for real property or 2026 and 2027 for manufactured homes. The Commissioner would make the eligibility decisions and certify factors within 60 days after this section takes effect. The reductions apply in the tax years listed above.