5-56-1: Title
This chapter shall be known as, and may be cited as, the
LOCALLY IMPOSED AND ADMINISTERED TAX RIGHTS AND RESPONSIBILITY
ORDINANCE. (Ord. M-81-00, 12-18-2000)
5-56-2: Scope
The provisions of this chapter shall apply to the city's
procedures in connection with all of the city's locally imposed and
administered taxes. (Ord. M-81-00, 12-18-2000)
5-56-3: Definitions
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 Des Plaines, Illinois.
Corporate Authorities: The city's mayor and city
council.
Local Tax Administrator: The city's director of finance
and administrative services 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 chapter to give full
effect to this chapter. The exercise of such authority by the
local tax administrator shall not be inconsistent with this
chapter and the act.
Locally Imposed and Administered Tax or Tax: 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.
Notice: Each audit notice, collection notice or other
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. (Ord.
M-81-00, 12-18-2000)
5-56-4: Notices
Unless otherwise provided, whenever notice is required to
be given, the notice is to be in writing mailed not n (7) calendar
days prior to the day fixed for any applicable or other scheduled
act of the local tax administrator. The sent by the local tax
administrator as follows:
First class or express mail, or overnight mail, addressed to
the concerned at the persons' last known address, or
Personal service or delivery. (Ord. M-81-00, 12-18-2000)
5-56-5: Late Payment
Any notice, payment, remittance or other filing required
to be made to the city pursuant to any tax ill be considered late
unless it is: a) physically received by the city before the due
date, or b) 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. (Ord.
M-81-00, 12-18-2000)
5-56-6: Payment
Any payment or remittance received for a tax period shall
be applied in the following order: a) first to the tax applicable
period; b) second to the interest due for the applicable period; and
c) third to the penalty for the applicable period. (Ord. 18-2000,
12-18-2000)
5-56-7: Certain Credits and
Refunds
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.
The statute of limitations on a claim for credit or refund
shall be four date (4) or less years 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.
The procedure for claiming a credit or refund of locally
imposed and administered taxes, interest or penalties paid in
error shall be as follows:
- The taxpayer shall submit to the local tax administrator in
writing a claim for credit or refund together with a statement
specifying:
- The name of the locally imposed and administered tax
subject to the claim;
- The tax period for the locally imposed and administered
tax subject to the claim;
- The date of the tax payment subject to the claim and the
canceled check or receipt for the payment;
- The taxpayer's recalculation, accompanied by an amended or
revised tax return, in connection with the claim; and
- 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.
- Within ten (10) days of the receipt by the local tax
administrator of any claim for a refund or credit, the local tax
administrator shall either:
- a. Grant the claim; or
- b. Deny the claim, in whole or in part, together with a
statement as to the reason for the denial or the partial grant
and denial.
- 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 bear interest at the rate of three
percent (3%) per annum, based on a year of three hundred sixty
five (365) days and the number of days elapsed, from the date of
the overpayment to the date of mailing of a refund check or the
grant of a credit. (Ord M-81-00, 12-18-2000)
5-56-8: Audit Procedure
Any request for proposed audit pursuant to any local
administered tax shall comply with the notice requirements of this
chapter.
Each notice of audit shall contain the following information:
The tax;
The time period of the audit; and
A brief description of the books and records to be made
available for the auditor.
Any audit shall be conducted during normal business hours and
n 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 thirty (30) days after the originally
designated audit and during normal business hours.
The taxpayer may request an extension of time to have an audit
conducted. The audit shall be conducted not less than seven (7)
days nor more than thirty (30) 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 the taxpayer is unable
to comply with the audit on the date in question, the taxpayer may
request another date within the thirty (30) days, approved in
writing, that is convenient to the taxpayer and the local tax
administrator.
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.
It is the duty and responsibility of every taxpayer to make
available its books and records for inspection by the city. If the
taxpayer 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.
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 forty five (45) days of the city's determination
of the amount of overpayment.
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.
M-81-00, 12-18-2000)
5-56-9: Appeal
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:
The reason for the assessment;
The amount of the tax liability proposed;
The procedure for appealing the assessment; and
The obligations of the city during the audit, appeal, refund
and collection process.
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 forty-five (45) days
of receipt of the written notice of the tax determination and
assessment.
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 fourteen (14) days of receipt
of the written protest and petition for hearing, unless the
taxpayer requests a later date convenient to all parties.
If a written protest and petition for hearing is not filed
within the forty-five (45) day period, the tax determination,
audit or assessment shall become a final bill due and owing
without further notice.
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 ninety (90) days after the expiration of the
forty-five (45) day period. (Ord. M-81-00, 12-18-2000)
5-56-10: Hearing:
Whenever a taxpayer or a tax collector has filed a timely
written protest and petition for hearing under section 5-56-9 of
this chapter, the local tax administrator shall conduct a hearing
regarding any appeal.
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 fourteen
(14) days.
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.
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. M-81-00,
12-18-2000)
5-56-11: Interest and Penalties
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.
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 one percent (1%) per month, based on
a year of three hundred sixty five (365) days and the number of
days elapsed.
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 five percent (5%) of the
amount of tax required to be shown as due on a return shall be
imposed, and a late payment penalty of five percent (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 twenty five percent (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. (Ord.
M-81-00, 12-18-2000)
5-56-12: Abatement
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. M-81-00, 12-18-2000)
5-56-13: Installment Contracts
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 thirty (30) days delinquent, the
taxpayer shall have fourteen (14) business days to cure any
delinquency. If the taxpayer fails to cure the delinquency within
the fourteen (14) 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. (Ord. M-81-00, 12-18-2000)
5-56-14: Statute of Limitations
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
forty five (45) days after receiving notice of the reviewed tax
returns to make any request for refund or provide any tax still due
and owing.
No determination of tax due and owing may be issued more than
four (4) 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.
If any tax return is not filed or if during any four (4) year
period for which a notice of tax determination or assessment may
be issued by the city the tax paid was less than seventy five
percent (75%) of the tax due, the statute of limitations shall be
six (6) years maximum 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.
No statute of limitations shall apply if a fraudulent tax
return was filed by the taxpayer. (Ord. M-81-00, 12-18-2000)
5-56-15: Voluntary Disclosure
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 one percent (1 %) per
month, for all periods prior to the filing of the application but
not more than four (4) 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 ninety
(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
ninety (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. M-81-00,
12-18-2000)
5-56-16: Publications of Tax
Ordinances
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. (Ord.
M-81-00, 12-18-2000)
5-56-17: Liens
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:
Timely remove the lien at the city's expense;
Correct the taxpayer's credit record; and
Correct any public disclosure of the improperly imposed lien.
(Ord. M-81-00, 12-18-2000)
5-56-18: Application
This chapter 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 chapter, this chapter shall be controlling. (Ord. M-81-00,
12-18-2000)
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