Tax & Accounting Blog

Kansas Property Tax Interest Rates for Calendar Year 2015

Blog, ONESOURCE, ONESOURCE Property Tax July 21, 2014

The Kansas Department of Revenue, Division of Property Valuation, announced that the 2014 legislature reduced the interest rate on delinquent taxes by two percent for the tax year 2015 and after.

The interest rate applied when a county collects interest on late payments of real or personal property taxes will be reduced to 4% (currently 6%). The interest rate applied on late or underpayments of $10,000 or more will be reduced to 10% (currently 12%). There is no change to interest rate applied on the late unpaid portion of advanced payments, it remains at 4% for tax year 2015 and after.

The interest rate applied when a county pays interest on refunds for payments made under protest and equalization appeals, or for tax grievance, or clerical error refunds ordered by the KS Board of Tax Appeals (BOTA), will remain at 2%. The interest rate applied when a county pays interest on refunds ordered by the county for clerical error will remain at 6%

In addition to these changes, the KS BOTA issued three decisions pertaining to the interest laws. First, interest should be paid to the taxpayer from the date the taxes were paid, when refunds are issued as a result of clerical error. Next, interest is not paid on refunds ordered as the result of a taxpayer’s request to reduce or abate personal property penalties on the basis of excusable neglect. Last, no interest will be paid on any refund if there are delinquent taxes for the tax year at issue. (Property Tax Interest Rates for Calendar Year 2015, Kansas Dept. of Rev., 07/03/2014.)