This article shall be known as, and may be cited
as, the "Locally Imposed and Administered Tax Rights and Responsibilities
Ordinance."
The provisions of this article shall apply to
the City's procedures in connection with all of the City's locally
imposed and administered taxes.
Certain words or terms herein shall have the
meanings ascribed to them as follows:
ACT
The Local Government Taxpayers' Bill of Rights Act.
CITY
The City of Lexington, Illinois.
LOCALLY IMPOSED AND ADMINISTERED TAX or TAX
Each tax imposed by the City that is collected or administered
by the City and not an agency or department of the state. It does
not include any taxes imposed upon real property under the Property
Tax Code or fees collected by the City, other than infrastructure
maintenance fees.
LOCAL TAX ADMINISTRATOR
The City's Collector is charged with the administration and
collection of the locally imposed and administered taxes, including
staff, employees or agents to the extent they are authorized by the
local tax administrator or act in the local tax administrator's stead.
The local tax administrator shall have the authority to implement
the terms of this article to give full effect to this article. The
exercise of such authority by the local tax administrator shall not
be inconsistent with this ordinance and the Act.
NOTICE
Each audit notice, collection notice or similar notice or
communication in connection with each of the City's locally imposed
and administered taxes.
TAX ORDINANCE
Each ordinance adopted by the City that imposes any locally
imposed and administered tax.
TAXPAYER
Any person required to pay any locally imposed and administered
tax and generally includes the person upon whom the legal incidence
of such tax is placed, and with respect to consumer taxes includes
the business or entity required to collect and pay the locally imposed
and administered tax to the City.
Any notice, payment remittance or other filing
required to be made to the City pursuant to any tax ordinance shall
be considered late unless it is received in an envelope or other container
displaying a valid, readable U.S. postmark dated on or before the
due date, properly addressed to the City, with adequate postage prepaid.
Any payment or remittance received for a tax
period shall be applied in the following order:
A. First
to the tax due for the applicable period;
B. Second
to the interest due for the applicable period; and
C. Third
to the penalty for the applicable period.
Any request for proposed audit pursuant to any
locally administered tax shall comply with the notice requirements
of this article.
A. Each notice of audit shall contain the following information:
(2) The time period of the audit; and
(3) A brief description of the books and records to be
made available for the auditor.
B. Any audit shall be conducted during normal business
hours, and if the date and time selected by the local tax administrator
is not agreeable to the taxpayer, another date and time may be requested
by the taxpayer within 30 days after the originally designated audit
and during normal business hours.
C. The taxpayer may request an extension of time to have
an audit conducted. The audit shall be conducted not less than seven
days from the date the notice is given, unless the taxpayer and the
local tax administrator agreed to some other convenient time. In the
event taxpayer is unable to comply with the audit on the date in question,
the taxpayer may request another date within the seven days, approved
in writing, that is convenient to the taxpayer and the local tax administrator.
D. Every taxpayer shall keep accurate books and records
of the taxpayer's business or activities, including original source
documents and books of entry denoting the transactions which had given
rise or may have given rise to any tax liability, exemption or deduction.
All books shall be kept in the English language and shall be subject
to and available for inspection by the City.
E. It is the duty and responsibility of every taxpayer
to make available its books and records for inspection by the City.
If the taxpayer (or tax collector) fails to provide the documents
necessary for audit within the time provided, the local tax administrator
may issue a tax determination and assessment based on the tax administrator's
determination of the best estimate of the taxpayer's tax liability.
F. If an audit determines there has been an overpayment
of a locally imposed and administered tax as a result of the audit,
written notice of the amount of overpayment shall be given to the
taxpayer within 30 days of the City's determination of the amount
of overpayment.
G. In the event a tax payment was submitted to the incorrect
local governmental entity, the local tax administrator shall notify
the local governmental entity imposing such tax.
In the event a determination has been made that
a tax is due and owing, through audit, assessment or other bill sent,
the tax must be paid within the time frame otherwise indicated.
A. Interest. The City hereby provides for the amount
of interest to be assessed on a late payment, underpayment, or nonpayment
of the tax, to be 9% per annum, based on a year of 365 days and the
number of days elapsed.
B. Late filing and payment penalties. If a tax return
is not filed within the time and manner provided by the controlling
tax ordinance, a late filing penalty of 5% of the tax due shall be
imposed. If no return is filed within the time or manner provided
by the controlling tax ordinance and prior to the City issuing a notice
of tax delinquency or notice of tax liability, then a failure-to-file
penalty shall be assessed equal to 25% of the total tax due for the
applicable reporting period for which the return was required to be
filed. A late filing or payment penalty shall not apply if a failure-to-file
penalty is imposed by the controlling ordinance.
The local tax administrator shall have the authority
to waive or abate any late filing penalty, late payment penalty or
failure-to-file penalty if the local tax administrator shall determine
reasonable cause exists for delay or failure to make a filing.
The City may enter into an installment contract
with the taxpayer for the payment of taxes under the controlling tax
ordinance. The local tax administrator may not cancel any installment
contract so entered unless the taxpayer fails to pay any amount due
and owing. Upon written notice by the local tax administrator that
the payment is 30 days delinquent, the taxpayer shall have 14 working
days to cure any delinquency. If the taxpayer fails to cure the delinquency
within the fourteen-day period or fails to demonstrate good faith
in restructuring the installment contract with the local administrator,
the installment contract shall be canceled without further notice
to the taxpayer.
The City, through the local tax administrator,
shall review all tax returns in a prompt and timely manner and inform
taxpayers of any amounts due and owing. The taxpayer shall have 45
days after receiving notice of the reviewed tax returns to make any
request for refund or provide any tax still due and owing.
A. No determination of tax due and owing may be issued
more than four years maximum after the end of the calendar year for
which the return for the applicable period was filed or for the calendar
year in which the return for the applicable period was due, whichever
occurs later.
B. If any tax return is not filed or if during any four-year
period for which a notice of tax determination or assessment may be
issued by the City the tax paid was less than 75% of the tax due for
that period, the statute of limitations shall be no more than six
years after the end of the calendar year in which the which return
for the applicable period was due or end of the calendar year in which
the return of the applicable period was filed.
C. No statute of limitations shall apply if a fraudulent
tax return was filed by the taxpayer.
For any locally imposed and administered tax
for which a taxpayer has not received a written notice of an audit,
investigation, or assessment from the local tax administrator, a taxpayer
is entitled to file an application with the local tax administrator
for a voluntary disclosure of the tax due. A taxpayer filing a voluntary
disclosure application must agree to pay the amount of tax due, along
with interest of 1% per month, for all periods prior to the filing
of the application but not more than four years before the date of
filing the application. A taxpayer filing a valid voluntary disclosure
application may not be liable for any additional tax, interest, or
penalty for any period before the date the application was filed.
However, if the taxpayer incorrectly determined and underpaid the
amount of tax due, the taxpayer is liable for the underpaid tax along
with applicable interest on the underpaid tax, unless the underpayment
was the result of fraud on the part of the taxpayer, in which case
the application shall be deemed invalid and void. The payment of tax
and interest must be made by no later than 90 days after the filing
of the voluntary disclosure application or the date agreed to by the
local tax administrator. However, any additional amounts owed as a
result of an underpayment of tax and interest previously paid under
this article must be paid within 90 days after a final determination
and the exhaustion of all appeals of the additional amount owed or
the date agreed to by the local tax administrator, whichever is longer.
Any locally administered tax ordinance shall
be published via normal or standard publishing requirements. The posting
of a tax ordinance on the Internet shall satisfy the publication requirements.
Copies of all tax ordinances shall be made available to the public
upon request at the City Clerk's office.
The local tax administrator shall establish
an internal review procedure regarding any liens filed against any
taxpayers for unpaid taxes. Upon a determination by the local tax
administrator that the lien is valid, the lien shall remain in full
force and effect. If the lien is determined to be improper, the local
tax administrator shall:
A. Timely remove the lien at the City's expense;
B. Correct the taxpayer's credit record; and
C. Correct any public disclosure of the improperly imposed
lien.
This article shall be liberally construed and
administered to supplement all of the City's tax ordinances. To the
extent that any tax ordinance shall be held to be invalid or unenforceable
for any reason, the invalidity or unenforceability of such section,
paragraph or provision shall not affect any of the remaining provisions
of this article.