42-17005. Adjustments to levy

A. If a governing body of a political subdivision or a fire district receives written notice of a violation of its allowable levy limit or truth in taxation limit under section 42-17003, and has not appealed the commission's decision pursuant to section 42-17004, the governing body shall correct its property tax levy and tax rate to properly reflect the allowable levy for the current year. The county board of supervisors shall make the necessary adjustments to the political subdivision's or district's property tax levy and tax rate to ensure that the corrected information is contained in the assessment and tax roll that is transmitted to the county treasurer pursuant to section 42-18003. If the governing body receives the notice after it is too late to correct the levy in the current year, the difference between the amount actually levied and the allowable property tax levy shall be set aside in a special fund and used to reduce the property taxes levied in the following year.

B. If, after a hearing under section 42-17004, the commission determines that errors were made in the calculation of the maximum allowable primary property tax levy limit pursuant to section 42-17051, subsection A, the primary property tax levy pursuant to section 15-992 or the secondary property tax levy limit pursuant to section 48-807, the commission shall have five days to notify the governing body of the county, city, town, community college district, school district or fire district of the corrected levy limit. The commission shall also notify the county board of supervisors within five days. The corrected maximum allowable primary property tax levy shall be used in section 42-17051, subsection A, paragraph 1 in determining the following year's levy limit. The corrected maximum allowable secondary property tax levy shall be used in section 48-807 in determining the following year's levy limit.

C. If, after a hearing under section 42-17004, it is impossible for the board of supervisors to correct a property tax levy in the current year, the political subdivision or fire district shall hold the difference between the amount the political subdivision or district actually levied and the allowable property tax levy prescribed by the commission in a separate fund to be used to reduce the property taxes levied by the political subdivision or district in the following year.

D. If the commission discovers that it has made an error in computing the levy limit after September 15, it shall notify the political subdivision's or fire district's governing body about the error. The error shall be corrected as prescribed in subsection A of this section. If the error results in the maximum allowable property tax levy being raised:

1. The corrected maximum allowable primary property tax levy shall be used in section 42-17051, subsection A, paragraph 1 in determining the following year's levy limit.

2. The corrected maximum allowable secondary property tax levy shall be used for the purposes of section 48-807 in determining the following year's levy limit.

E. If, on appeal under section 42-17004, subsection E, the ruling of the court provides for a property tax levy in an amount that is less than the amount levied by the political subdivision or fire district, the political subdivision or district shall hold the difference between the amounts in a separate fund to be used to reduce the property taxes levied by the political subdivision or district in the following year.