[HISTORY: Adopted by the Rochester City Council 2-12-2008 by Ord. No. 2008-46. Amendments noted where applicable.]
Taxation — See Ch. 107.
As used in this chapter, the words and phrases stated below shall have the following meanings:
- REFUND ANTICIPATION LOAN
- Any loan a taxpayer may receive against his or her anticipated income tax refund.
- TAX PREPARER
- A person, partnership, corporation or other business entity that, for valuable consideration, advises or assists or offers to advise or assist in the preparation of income tax returns for another.
Any tax preparer who advertises the availability of a refund anticipation loan may not directly or indirectly represent such a loan as a refund. Any advertisement which mentions a refund anticipation loan must state conspicuously that it is a loan and that a fee or interest will be charged by the lending institution. The advertisement must also disclose the name of the lending institution.
Before any taxpayer enters into a refund anticipation loan, the tax preparer facilitating such loan shall provide the disclosure set forth in Subdivision C below to the taxpayer, in writing, in English and Spanish, in at least fourteen-point type. In the event that the taxpayer does not understand English or Spanish, the tax preparer shall also provide a point-by-point oral explanation of such required disclosure in a language understood by the taxpayer.
The required disclosure form shall contain substantially the following language:
YOU ARE NOT REQUIRED TO ENTER INTO THIS REFUND ANTICIPATION LOAN AGREEMENT MERELY BECAUSE YOU HAVE RECEIVED THIS INFORMATION.
IF YOU DO SIGN A CONTRACT FOR A REFUND ANTICIPATION LOAN, YOU WILL BE TAKING OUT A LOAN. YOU WILL BE RESPONSIBLE FOR REPAYMENT OF THE ENTIRE LOAN AMOUNT AND ALL RELATED COSTS AND FEES, REGARDLESS OF HOW MUCH MONEY YOU ACTUALLY RECEIVE IN YOUR TAX REFUND.
IF YOU DO NOT TAKE OUT THIS REFUND ANTICIPATION LOAN, YOU ARE ELIGIBLE TO RECEIVE A GROSS TAX REFUND OF APPROXIMATELY $ [insert amount].
IF YOU DO TAKE OUT THIS REFUND ANTICIPATION LOAN, YOU WILL BE RESPONSIBLE TO PAY $ [insert amount] IN FEES FOR THE LOAN. AFTER THESE FEES ARE PAID, YOU WILL RECEIVE APPROXIMATELY $ [insert amount] AS YOUR LOAN.
THE ESTIMATED ANNUAL PERCENTAGE RATE OF YOUR REFUND ANTICIPATION LOAN IS [insert amount]%. THIS IS BASED ON THE ACTUAL AMOUNT OF TIME YOU WILL BE LENT MONEY THROUGH THIS REFUND ANTICIPATION LOAN.
IF YOU DO TAKE OUT THIS REFUND ANTICIPATION LOAN, YOU CAN EXPECT TO RECEIVE YOUR LOAN WITHIN APPROXIMATELY TWO BUSINESS DAYS OF [insert date].
IF YOU DO NOT TAKE OUT THIS REFUND ANTICIPATION LOAN, YOU CAN STILL RECEIVE YOUR TAX REFUND QUICKLY. IF YOU FILE YOUR TAX RETURN ELECTRONICALLY AND RECEIVE YOUR TAX REFUND THROUGH THE MAIL, YOU CAN EXPECT TO RECEIVE YOUR REFUND WITHIN APPROXIMATELY TWO BUSINESS DAYS OF [insert date]. IF YOU FILE YOUR TAX RETURN ELECTRONICALLY AND HAVE YOUR TAX REFUND DIRECTLY DEPOSITED INTO A BANK ACCOUNT, YOU CAN EXPECT TO RECEIVE YOUR REFUND WITHIN APPROXIMATELY TWO BUSINESS DAYS OF [insert date].
It shall be the obligation of the tax preparer to complete the required disclosure accurately with all relevant information for each consumer, to provide the required point-by-point oral explanation when necessary, and to ensure that the completed disclosure form is signed by the consumer before he or she enters into a refund anticipation loan.
A tax preparer who violates any provision of this chapter shall be liable for a civil penalty of not less than $250 nor more than $500 for the first violation and, for each succeeding violation, a civil penalty of not less than $500 nor more than $750.
Any person claiming to be injured by the failure of a tax preparer to act in accordance with this chapter shall have a cause of action against such tax preparer in any court of competent jurisdiction for any or all of the following relief: