3.19.100 Overpayment of tax, penalty, or interest—Credit or refund—Interest rate—Statute of limitations.
A. If, upon receipt of an application for a refund, or during an audit or examination of the taxpayer’s records and tax returns, the director determines that the amount of tax, penalty, or interest paid is in excess of that properly due, the excess amount shall be credited to the taxpayer’s account or shall be refunded to the taxpayer. Except as provided in subsection B of this section, no refund or credit shall be made for taxes, penalties, or interest paid more than four years prior to the beginning of the calendar year in which the refund application is made or examination of records is completed.
B. The execution of a written waiver shall extend the time for applying for, or making a refund or credit of, any taxes paid during, or attributable to, the years covered by the waiver if, prior to the expiration of the waiver period, an application for refund of such taxes is made by the taxpayer or the director discovers that a refund or credit is due.
C. Refunds shall be made by means of vouchers approved by the director and by the issuance of a city check or warrants drawn upon and payable from such funds as the city may provide.
D. Any final judgment for which a recovery is granted by any court of competent jurisdiction for tax, penalties, interest, or costs paid by any person shall be paid in the same manner as provided in subsection C of this section, upon the filing with the director a certified copy of the order or judgment of the court.
E.
1. For refunds of amounts paid or other recovery allowed to a taxpayer after December 31, 1991, and before July 1, 2002, the rate of interest shall be the rate as computed by taking seventy-five percent of the current (daily) state pool rate compounded annually.
2. For refunds or credits of amounts paid or other recovery allowed to a taxpayer after July 1, 2002, and before January 1, 2005, the rate of interest shall be the federal short-term interest rate as outlined for assessments under Section 3.19.090(B)(2) and (3) less two percentage points.
3. For tax periods after December 31, 2004, the director shall compute interest on refunds or credits or amounts paid or other recovery allowed a taxpayer in accordance with RCW 82.32.060 as it now exists or may be amended.
4. If subsection (E)(3) of this section is held invalid, then the provisions of RCW 82.32.060 existing at the effective date of the ordinance codified in this section shall apply. (Ord. 3710-19 § 1, 2019.)