§ 6071. Excessive and fraudulent claims

(a) In any case in which it is determined under the provisions of this title that a claim is or was excessive and was filed with fraudulent intent, the claim shall be disallowed in full, and the Commissioner may impose a penalty equal to the amount claimed. A disallowed claim may be recovered by assessment as income taxes are assessed. The assessment, including assessment of penalty, shall bear interest from the date the claim was credited against property tax or income tax or paid by the state until repaid by the claimant, at the rate per annum established from time to time by the Commissioner pursuant to section 3108 of this title. The claimant in that case, and any person who assisted in the preparation of filing of such excessive claim or supplied information upon which the excessive claim was prepared, with fraudulent intent, shall be fined not more than $1,000.00 or be imprisoned not more than one year, or both.

(b) In any case in which it is determined that a claim is or was excessive, the Commissioner may impose a 10 percent penalty on such excess and if the claim has been paid or credited against property tax or income tax otherwise payable, the credit shall be reduced or canceled, and the proper portion of any amount paid shall be similarly recovered by assessment as income taxes are assessed and such assessment shall bear interest at the rate per annum established from time to time by the Commissioner pursuant to section 3108 of this title from the date of payment or, in the case of credit of a property tax bill under section 6066a of this title, from December 1 of the year in which the claim is filed until refunded or paid.

(c) In any case in which a homestead is rented by a person from another person under circumstances deemed by the Commissioner to be not at arms-length, the Commissioner may determine the rent constituting property tax for purposes of this chapter. (Added 1997, No. 60, § 51, eff. Jan. 1, 1998; amended 2007, No. 190 (Adj. Sess.), § 45.)