The taxpayer challenge to the county treasurer’s interpretation of the statute was filed in District Court earlier this week to force the treasurer to continue to pay interest at 6 percent annually, regardless of the statutory rate change made by the Nevada Legislature.
“In order to comply with the law, interest should be paid at the rate of 0.5 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,” Washoe County Treasurer Tammi Davis said in a press release. “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.”
Davis added 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 is working to complete the refunds by the court-imposed August 2013 deadline.