relative to including interest in an abated property tax refund at the rate determined by the department of revenue administration.

HB 1040 would change how interest is calculated on property tax refunds when a taxpayer receives a tax abatement. Currently, the interest rate is fixed at 4 percent, but this bill proposes that the rate be set by the Department of Revenue Administration and then increased by two percentage points. The change applies to interest paid from the date the taxes were originally paid until the refund is issued. Although the bill was referred for an interim study, it was not recommended for future legislation, meaning the proposed changes were not adopted.