MEMORANDUM

KENAI PENINSULA BOROUGH

LEGAL DEPARTMENT

144 N. Binkley Street Tel. (907) 262-8609

Soldotna, Alaska 99669 Fax (907) 262-8686

TO: Ronald Wm. Drathman, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Mike Navarre, Borough Mayor

FROM: Colette Thompson, Borough Attorney

Jim Lawyer, Borough Assessor

Jeff Sinz, Finance Director

DATE: September 9, 1999

SUBJECT: Ordinance 99 - 58 Enacting KPB 5.12.042 Clarifying the administration's authority to correct error in assessments and to refund overpaid taxes

The accompanying ordinance clarifies when the administration is authorized to correct clerical errors in real and personal property tax assessments, and to refund excess taxes paid as a result of such errors.

Alaska Statute 29.45.500, as interpreted by the court,^{(1) authorizes the refund of taxes paid in error, but distinguishes between clerical errors made by the taxpayer and those made by the municipality. For taxpayer errors, the borough is required to refund taxes overpaid when it is satisfied that, on audit of the account, the error occurred, but only if the claim is filed within one year of the tax due date. On the other hand, the statute authorizes the governing body, in its discretion, to correct manifest clerical errors made by the municipality at any time. In either case, the statute requires all refunds to be paid at the rate of 8% from the date the tax was paid.}