Erroneous Tax Law and Legal Definition
An erroneous tax refers to a tax levied without statutory authority. It includes a tax on property not subject to taxation, or a tax levied by an officer who lacks authority to levy the tax. [Popplewell's Alligator Dock No. 1, Inc. v. Revenue Cabinet, 133 S.W.3d 456 (Ky. 2004)].
When an erroneous tax is collected, the ones entitled thereto can recover it by filing an application. In People ex rel. Atlantic Gulf & Pacific Co. v. Miller, 173 Misc. 397 (N.Y. Misc. 1939), the court held that an action for the recovery of money paid by reason of an illegal or erroneous tax is regarded as an action for money had and received.
