[Adopted 12-11-2000 by Ord. No. 2000-27]
This article is adopted pursuant to the provisions of the Illinois
Local Government Taxpayers' Bill of Rights Act (Public Act 91-920,
50 ILCS 45/1 et seq.) (the "Act") for the purpose, consistent with
the Act, of reducing burdens on taxpayers and the Village by providing
fair and consistent tax processes and procedures for taxpayers, while
at the same time preserving the Village's full authority to collect
taxes lawfully due under its taxing ordinances;
As used in this article, the following terms shall have the
meanings indicated:
Any person required to pay any Village tax. The term "taxpayer"
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 Village tax to the Village.
A tax imposed, and collected or administered, by the Village.
"Village tax" does not include a tax imposed upon real property under
the Illinois Property Tax Code or fees collected by the Village; except,
however, that "Village tax" does include the Village's infrastructure
maintenance fees.
The Village's Finance Director or his or her authorized designee.
The Village shall apply any payment or remittance received pursuant
to a Village tax for a tax period in the following order:
A.
Limitation on determination of tax or assessment. Subject to the provisions of Subsection B of this section, and unless a specific Village ordinance provides for a shorter time period, the Village shall not issue a determination of tax due or assessment:
(1)
More than four years after the end of the calendar year that the
return for the period was filed, or the end of the calendar year that
the return for the period was due, whichever occurs later; or
(2)
More than six years after the end of the calendar year that the return
for the period was due or the end of the calendar year that the return
for the period was filed, whichever occurs later, if a taxpayer failed
to file a tax return, or if the taxpayer paid or remitted less than
75% of the tax due during any four-year period that the Village may
issue a notice of tax determination or assessment.
[Amended 5-22-2017 by Ord. No. 2017-12]
A.
Notice. The Village shall notify a taxpayer in writing of a proposed
Village audit of that taxpayer's books and records, clearly identifying
who will be conducting the audit. For audits being conducted by third-party
providers, the Village shall provide written authorization for the
third-party provider to review the books and records of the taxpayer.
No contact may be made by the third-party provider until the Village
authorization is received by the taxpayer.
B.
Content of notice. Such notice shall specify the tax and time period
to be audited and shall detail the minimum documentation or books
and records that the taxpayer must make available to the Village auditor.
C.
Audit timing, confidentiality and report. Audits shall be held only
during reasonable times of the day and, unless impracticable, at times
agreed to by the taxpayer. The auditor must sign a confidentiality
agreement upon request by the taxpayer. Upon completion of the audit,
the Village shall issue an audit closure report to the taxpayer with
the results of the audit.
D.
Overpayments. A Village auditor who determines that there has been
an overpayment of tax during the course of the audit shall identify
the overpayment to the taxpayer so that the taxpayer can take the
necessary steps to recover the overpayment. If the overpayment is
the result of the application of some or all of the taxpayer's tax
payment to an incorrect Village entity, then, upon request by the
Village, the audit information shall be given to any unit of local
government that may be affected by an overpayment.
A.
Notice of rights. Whenever the Village sends a protestable notice
of 1) tax due, or 2) a bill, or 3) a claim denial, or 4) a notice
of claim reduction regarding any tax to a taxpayer, such notice shall
include a written statement of rights, which shall include the following
information:
(1)
The reason for the assessment;
(2)
The amount of the Village tax liability proposed;
(3)
The procedure for appealing the assessment;
(4)
The obligations of the Village during the audit appeal, refund, and
collection process;
(5)
A statement that the taxpayer shall have 45 days after service of
the notice to protest a notice of tax determination or notice of tax
liability;
(6)
A statement that the taxpayer may request a hearing with the Village
Tax Administrator.
B.
Delivery; receipt. The Village shall send such notice by United States
registered or certified mail. Such notice shall be deemed received
by the taxpayer upon actual receipt or on the third business day after
the Village deposits the notice in any main or branch United States
post office.
C.
Time extension for good cause. Upon a showing of good cause by the
taxpayer satisfactory to the Village Tax Administrator, the Village
Tax Administrator may extend the forty-five-day protest period by
an additional period of time not exceeding 30 days. The Village Tax
Administrator, upon a showing of good cause, also may open up any
closed protest period, but only for a period of time not exceeding
30 days.
A.
Appeal procedure. Any taxpayer who desires to seek a credit or a
refund or desires to appeal a determination of tax due or an assessment
pursuant to a Village tax shall adhere to the following procedures:
(1)
File a request for credit or refund with the Village Tax Administrator
on a form provided by the Village or, within 45 days after receipt
of the Village's protestable notice, file a written protest on a form
provided by the Village;
(2)
Provide any supportive documents or other evidence that may display
that the Village's assessment of the tax was unauthorized, and direct
such protest or request to the Village Tax Administrator; and
(3)
Make any books or records of its business or activity available for
audit or inspection upon the written request of the Village.
B.
Hearing. Whenever a taxpayer or a tax collector has filed a request
for credit or refund or a timely written protest, and has requested
a hearing, the Village Tax Administrator shall conduct a hearing in
the following manner:
(1)
The Village Tax Administrator shall fix the time and place for a
hearing and shall give written notice to the taxpayer. The hearing
shall be scheduled for a date within 14 days after receipt of the
request for the hearing, unless the taxpayer requests a later date
convenient to all parties.
(2)
No continuances of the hearing shall be granted after it has been
scheduled, except in cases when a continuance is absolutely necessary
to protect the rights of the taxpayer. Any continuance granted shall
not exceed 14 days.
(3)
The Village Tax Administrator shall preside at the hearing and shall
hear testimony and accept any evidence relevant to the tax determination,
audit, or assessment. The strict rules of evidence applicable to judicial
proceedings shall not apply.
C.
Village determination. The Village Tax Administrator, by United States
registered or certified mail, shall send to the taxpayer the Tax Administrator's
written determination regarding the taxpayer's protest within 45 days
after receiving the taxpayer's written protest or credit or refund
form if the taxpayer does not request a hearing, or within 30 days
after the conclusion of a hearing. Such determination shall include:
(1)
A ruling as to whether the Village tax as a whole or any portion
of it was unauthorized;
(2)
A written determination as to why the Village tax or any portion
of it was authorized; and
(3)
If appropriate, a certified check equaling the unauthorized amount
paid by the taxpayer and the applicable amount of interest.
D.
No refund if voluntary payment. The Village shall not be required
to refund or credit any taxes voluntarily paid without written protest
at the time of payment in the event that a Village tax is declared
invalidly enacted or unconstitutional by a court of competent jurisdiction.
However, a taxpayer shall not be deemed to have paid a Village tax
voluntarily if the taxpayer lacked knowledge of the facts upon which
to protest the Village taxes at the time of payment or if the taxpayer
paid such taxes under duress.
E.
No credits or refunds if no remittance. The Village shall not be
required to grant a credit, refund of taxes, interest, or penalties
to a person who has not paid or remitted the amounts directly to the
Village.
F.
Four-year limitation. Unless otherwise specifically provided in a
Village ordinance authorizing a Village tax, no claim for a credit
or refund shall be made more than four years after the date of the
erroneous payment.
G.
Interest if overpayment. The Village shall pay interest in the amount
of 5% per year for a taxpayer's overpayment of tax.
Unless expressly provided otherwise in a Village ordinance,
interest in the amount of 12% per year shall be assessed against all
late payments, underpayments, and nonpayments of a Village tax.
A.
Application. A taxpayer may file an application, on a form prepared
by the Village, with the Village Tax Administrator for a voluntary
disclosure of the tax due for any Village tax for which a taxpayer
has not received a written notice of an audit, investigation, or assessment
from the Village Tax Administrator.
B.
Payment and interest required. A taxpayer who files a voluntary disclosure
application must agree to pay the amount of the Village tax due, plus
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.
C.
No extra liability. Except for the payment of the full amount of
tax and interest due under this section, a taxpayer filing a valid
voluntary disclosure application shall not be liable for any additional
tax, interest, or penalty for any period before the date the application
was filed; provided, however, that if the taxpayer incorrectly determined
and underpaid the amount of tax due as provided in this section, then
the taxpayer is liable for the underpaid tax along with applicable
interest on the underpaid tax. If the underpayment was the result
of fraud on the part of the taxpayer, then the application shall be
deemed invalid and void.
D.
Time limitation for payment. The payment of tax and interest required
under this section shall be made within 90 days after the filing of
the voluntary disclosure application, or the date agreed to in writing
by the Village Tax Administrator, whichever is longer. However, any
additional amounts owed as a result of an underpayment of tax and
interest previously paid under this section 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 Village
Tax Administrator, whichever is longer.
The Village Tax Administrator shall establish, by administrative
order of the Village, a process of reviewing liens filed by the Village
against taxpayers. If any lien is determined to be improper, then
the Village Tax Administrator shall cause such lien to be removed
at the Village's own expense, shall correct the taxpayer's credit
record, and shall correct any public disclosure of the improperly
imposed lien.
The Village shall publish its taxing ordinances and shall make
copies of its taxing ordinances readily available to the public on
request. The posting of such tax ordinances on the internet shall
be deemed to satisfy the publication requirement of this section.
A.
Late filing and payment penalty. If a return is filed late, then
the taxpayer shall pay a penalty for such late filing of 5% of the
amount of tax required to be shown as due on a return. If the taxpayer
makes a late payment, then the taxpayer shall pay a penalty of 5%
of the tax due and not timely paid or remitted. Late filing and payment
penalties shall not apply to a particular taxpayer if, but only if,
a failure-to-file penalty is imposed on that taxpayer by the Village.
The Village Tax Administrator may determine, in the sole exercise
of his or her sound judgment, that the late filing or late payment
was due to a reasonable cause and abate some or all the penalty.
B.
Failure-to-file penalty. If no return is filed before the issuance
of a notice of tax deficiency or of tax liability to the taxpayer,
then the penalty for such failure to file shall be 25% of the total
tax due for the applicable reporting period for which the return was
required to have been filed. A Village Tax Administrator may determine,
in the sole exercise of his or her sound judgment, that the failure
to file a return was due to reasonable cause and abate some or all
of the penalty.
C.
Criminal penalties. Criminal penalties shall be imposed on any taxpayer
for noncompliance with the provisions of a Village tax only in the
event that the noncompliance is a result of willful or fraudulent
disregard of the Village tax laws.
