[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:
TAXPAYER
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.
VILLAGE TAX
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.
VILLAGE TAX ADMINISTRATOR
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. 
First, to the tax due for that period.
B. 
Second, to interest due for the period.
C. 
Third, to penalties due for the period.
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.
B. 
Exception if fraud. Notwithstanding the provisions of Subsection A of this section, there shall be no time limitation imposed on a determination or assessment of a Village tax if the taxpayer filed a fraudulent tax return.
[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. 
If the Village shall enter into an agreement allowing a taxpayer to make payments by installments, then the Village shall not cancel such installment agreement except if:
(1) 
The taxpayer fails to pay any amount due on time and fails to cure the delinquency in the allowable time provided by the Village; or
(2) 
The taxpayer fails to demonstrate good faith in restructuring the installment agreement.
B. 
Nothing in this section shall be construed or applied to require the Village to enter into any installment agreement.
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.