[Ord. No. 2001-95]
This ordinance shall be known as, and may be cited as, the "Tax Rights and Responsibility Ordinance."
[Ord. No. 2014-21]
The provisions of this ordinance which are not inconsistent with the Articles imposing the City's locally imposed and administered taxes, shall apply as far as practicable, to the City's procedures and collection powers in connection with all of the City's locally imposed and administered taxes.
Certain words or terms herein shall have the meaning ascribed to them as follows:
The "Local Government Taxpayers' Bill of Rights Act."
The City of Bloomington, Illinois.
The City's Mayor and City Council.
The City's Finance Director, 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 to act in the local tax administrator's stead. The local tax administrator shall have the authority to implement the terms of this ordinance to give full effect to this ordinance. The exercise of such authority by the local tax administrator shall not be inconsistent with this ordinance and the Act.
[Ord. No. 2017-28]
Each tax imposed by the City that is collected or administered by the City 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.
Each audit notice, collection notice or other similar notice or communication in connection with each of the City's locally imposed and administered taxes.
Each ordinance adopted by the City that imposes any locally imposed and administered tax.
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.
[Ord. No. 2001-95]
Unless otherwise provided, whenever notice is required to be given, the notice is to be in writing mailed not less than seven calendar days prior to the day fixed for any applicable hearing, audit or other scheduled act of the local tax administrator. The notice shall be sent by the local tax administrator as follows:
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:
A.
The City shall not refund or credit any taxes voluntarily paid without written protest at the time of payment in the event that a locally imposed and administered tax is declared invalidly enacted or unconstitutional by a court of competent jurisdiction. However, a taxpayer shall not be deemed to have paid the tax voluntarily if the taxpayer lacked knowledge of the facts upon which to protest the taxes at the time of payment or if the taxpayer paid the taxes under duress.
[Ord. No. 2001-95]
B.
The statute of limitations on a claim for credit or refund shall be one year after the end of the calendar year in which payment in error was made. The City shall not grant a credit or refund of locally imposed and administered taxes, interest, or penalties to a person who has not paid the amounts directly to the City.
[Ord. No. 2001-95]
C.
The procedure for claiming a credit or refund of locally imposed and administered taxes, interest or penalties paid in error shall be as follows:
(1)
The taxpayer shall submit to the local tax administrator in writing a claim for credit or refund together with a statement specifying:
(a)
The name of the locally imposed and administered tax subject to the claim;
(b)
The tax period for the locally imposed and administered tax subject to the claim;
(c)
The date of the tax payment subject to the claim and the canceled check or receipt for the payment;
(d)
The taxpayer's recalculation, accompanied by an amended or revised tax return, in connection with the claim; and
(e)
A request for either a refund or a credit in connection with the claim to be applied to the amount of tax, interest and penalties overpaid, and, as applicable, related interest on the amount overpaid; provided, however, that there shall be no refund and only a credit given in the event the taxpayer owes any monies to the City.
[Ord. No. 2001-95]
(2)
Within 30 days of the receipt by the local tax administrator of any claim for a refund or credit, the local tax administrator shall either:
(3)
In the event the local tax administrator grants, in whole or in part, a claim for refund or credit, the amount of the grant for refund or credit shall not bear interest.
[Ord. No. 2017-28]
Any request for proposed audit pursuant to any local administered tax shall comply with the notice requirements of this ordinance.
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.
[Ord. No. 2001-95]
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 30 days, approved in writing, that is convenient to the taxpayer and the local tax administrator.
[Ord. No. 2001-95]
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.
[Ord. No. 2001-95]
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.
[Ord. No. 2001-95]
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.
[Ord. No. 2001-95]
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.
[Ord. No. 2001-95]
A.
The local tax administrator shall send written notice to a taxpayer upon the local tax administrator's issuance of a protestable notice of tax due, a bill, a claim denial, or a notice of claim reduction regarding any tax. The notice shall include the following information:
B.
A taxpayer who receives written notice from the local tax administrator of a determination of tax due or assessment may file with the local tax administrator a written protest and petition for hearing, setting forth the basis of the taxpayer's request for a hearing. The written protest and petition for hearing must be filed with the local tax administrator within 45 days of receipt of the written notice of the tax determination and assessment.
[Ord. No. 2001-95]
C.
If a timely written notice and petition for hearing is filed, the local tax administrator shall fix the time and place for hearing and shall give written notice to the taxpayer. The hearing shall be scheduled for a date within 14 days of receipt of the written protest and petition for hearing, unless the taxpayer requests a later date convenient to all parties.
[Ord. No. 2001-95]
D.
If a written protest and petition for hearing is not filed within the forty-five-day period, the tax determination, audit or assessment shall become a final bill due and owing without further notice.
[Ord. No. 2001-95]
E.
Upon the showing of reasonable cause by the taxpayer and the full payment of the contested tax liability along with interest accrued as of the due date of the tax, the local tax administrator may reopen or extend the time for filing a written protest and petition for hearing. In no event shall the time for filing a written protest and petition for hearing be reopened or extended for more than 90 days after the expiration of the forty-five-day period.
[Ord. No. 2001-95]
A.
Whenever a taxpayer or a Tax Collector has filed a timely written protest and petition for hearing under § 39-1509, above, the local tax administrator shall conduct a hearing regarding any appeal.
[Ord. No. 2001-95]
B.
No continuances shall be granted except in cases where a continuance is absolutely necessary to protect the rights of the taxpayer. Lack of preparation shall not be grounds for a continuance. Any continuance granted shall not exceed 14 days.
[Ord. No. 2001-95]
C.
At the hearing the local tax administrator shall preside 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.
[Ord. No. 2001-95]
D.
At the conclusion of the hearing, the local tax administrator shall make a written determination on the basis of the evidence presented at the hearing. The taxpayer or Tax Collector shall be provided with a copy of the written decision.
[Ord. No. 2001-95]
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. For any locally imposed tax under this chapter 39 or the City that is not paid when required, or only partially paid, or when no tax return is timely filed, the provisions of Subsections A and B below shall be applicable.
A.
Interest. The City hereby provides for the amount of interest to be assessed on a late payment, underpayment, or nonpayment of the tax, together with any unpaid interest assessed on such tax, to be 2% per month.
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 amount of tax required to be shown as due on a return shall be imposed; if any tax is not paid within the time and manner provided by the controlling tax ordinance, a late payment penalty of 5% of the tax due shall be imposed. City shall not impose both a late filing penalty and a late payment penalty for the same return. 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 under this article shall not apply if a failure to file or pay penalty is imposed by the controlling ordinance.
[Ord. No. 2017-28]
[Ord. No. 2001-95]
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.
[Ord. No. 2001-95]
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 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, the statute of limitations shall be six years after the end of the calendar year in which return for the applicable period was due or end of the calendar year in which the return for the applicable period was filed.
C.
No statute of limitations shall not apply if a fraudulent tax return was filed by the taxpayer.
[Ord. No. 2001-95]
[Ord. No. 2014-21]
In case of failure to pay any tax imposed under this chapter 39 or by the City, or any portion thereof, or any penalty, or any penalty provided for in this article, or interest, when due, the City may bring suit against the Tax Collector or the purchaser or user to recover the amount of such tax or portion thereof, or penalty and/or interest; or, if the Tax Collector or purchaser or user has died or become incompetent, may file a claim therefore against his estate; provided that no such suit with respect to any tax, or portion thereof, or penalty, or interest shall be instituted more than six years after the date any proceedings in court for review thereof have terminated or the time for the taking thereof has expired without such proceeding being instituted, except with the consent of the person from whom such tax or penalty or interest is due; not, except with such consent, shall suit be instituted more than six years after the date any return is filed with the City in cases where the return constitutes the basis for the suit for unpaid tax or portion thereof, or penalty provided for in this article, or interest: Provided that the time limitation period on the City's right to bring any such suit shall not run during any period of time in which the order of any court has the effect of enjoining or restraining the City from bringing such suit.
A.
The City shall have a lien for any tax imposed under this chapter 39 or by the City, or any portion thereof, or for any penalty provided for in this chapter, or for any amount of interest which may be due as provided for in this chapter, upon all the real and personal property of any person to whom a final assessment or revised final assessment has been issued as provided in this chapter, or whenever a return is filed without payment of the tax or penalty shown therein to be due, including all such property of such persons acquired after receipt of such assessment of filing of such return. The taxpayer is liable for the filing fee incurred by the City for filing the lien and the filing fee incurred by the City to file the release of that lien. The filing fees shall be paid to the City in addition to payment of the tax, penalty, and interest included in the amount of the lien.
B.
However, where the lien arises because of the issuance of a final assessment or revised final assessment by the City, such lien shall not attach and the notice hereinafter referred to in this section shall not be filed until all proceedings in court for review of such final assessment or revised final assessment have terminated or the time for the taking thereof has expired without such proceedings being instituted.
C.
The lien created by the issuance of a final assessment shall terminate unless a notice of lien is filed within six years from the date all proceedings in court for the review of such final assessment have terminated or the time for the taking thereof has expired without such proceedings being instituted and where the lien results from the filing of a return without payment of the tax or penalty shown therein to be due, the lien shall terminate unless a notice of lien is filed within six years from the date when such return is filed with the City: Provided that the time limitation period on the City's right to file a notice of lien shall nor run:
(1)
During any period of time in which the order of any court has the effect of enjoining or restraining the City from filing such notice of lien; or
(2)
During the term of repayment plan that taxpayer has entered into with the City, as long as taxpayer remains in compliance with the terms of the repayment plan.
D.
The procedures for notice and enforcement of such lien shall be the same as that provided in the Retailers' Occupation Tax Act as now or hereafter amended. The lien may be signed by the City Manager or City Finance Director, or their designees.
[Ord. No. 2001-95]
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 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 local tax administrator, whichever is longer.
[Ord. No. 2001-95]
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:
[Ord. No. 2001-95]
This ordinance shall be liberally construed and administered to supplement all of the City's tax ordinances. To the extent that any tax ordinance is in conflict with or inconsistent with this ordinance, this ordinance shall be controlling.
[Ord. No. 2001-95]
If any section, paragraph or provision of this 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 ordinance.