O-03-01 01/08/2001VILLAGE OF LEMONT
ORDINANCE NO. 0 - 03 7W
AN ORDINANCE IN CONNECTION WITH RIGHTS AND RESPONSIBILITIES
RELATED TO LOCALLY IMPOSED AND ADMINISTERED TAXES OF THE
VILLAGE OF LEMONT, ILLINOIS
ADOPTED BY THE
PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF LEMONT
This day of
Published in pamphlet form by
authority of the President and
Board of Trustees of the Village of
Lemont, Counties of Cook, Will, and
DuPage, Illinois this
day of , 2001
, 2001.
ORDINANCE NO.0 03 so/
AN ORDINANCE IN CONNECTION WITH RIGHTS AND RESPONSIBILITIES
RELATED TO LOCALLY IMPOSED AND ADMINISTERED TAXES OF THE
VILLAGE OF LEMONT, ILLINOIS
WHEREAS, the State of Illinois pursuant to the Local Government Taxpayers' Bill
of Rights Act, 50 ILCS 45/1 et. seq., has determined it reasonable and necessary to create
the Local Government Taxpayers' Bill of Rights Act; and
WHEREAS, the Local Government Taxpayers' Bill of Rights Act requires that a
municipality adopt tax processes and procedures to provide all necessary due process
rights to a taxpayer in the collection and enforcement of local tax laws; and
WHEREAS, the Village of Lemont, Illinois (the "Village ") has determined it
reasonable and necessary to establish certain procedures in regard to locally imposed and
administered taxes.
NOW THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND
BOARD OF TRUSTEES OF THE VILLAGE of LEMONT, as follows:
SECTION ONE: Title. This ordinance shall be known as, and may be cited as, the
"Locally Imposed and Administered Tax Rights and Responsibility Ordinance."
SECTION TWO: Scope. The provisions of this ordinance shall apply to the
Village's procedures in connection with all of the Village's locally imposed and
administered taxes.
SECTION THREE: Definitions. Certain words or terms herein shall have the
meaning ascribed to them as follows:
"Act" means the "Local Government Taxpayers' Bill of Rights Act."
"Corporate Authorities" means the Village's President and Board of Trustees.
"Locally imposed and administered tax" or "tax" means each tax imposed by the
Village that is collected or administered by the Village 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 Village other than infrastructure maintenance fees.
"Hearing Officer" means an administrative individual appointed by the Mayor
with the advice and consent of the Corporate Authorities to conduct hearings and to issue
final determinations regarding the collection of all locally imposed and administered
taxes.
"Local tax administrator," the Village Treasurer, 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.
"Village" means the Village of Lemont, Illinois.
"Notice" means each audit notice, collection notice or other similar notice or
communication in connection with each of the Village's locally imposed and
administered taxes.
"Tax Ordinance" means each ordinance adopted by the Village that imposes any
locally imposed and administered tax.
"Taxpayer" means 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 Village.
SECTION FOUR Notices. Unless otherwise provided, whenever notice is
required to be given, the notice is to be in writing mailed not less than thirty (30)
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:
(1) First class or express mail, or overnight mail, addressed to the persons
concerned at the persons' last known address, or
(2) Personal service or delivery.
SECTION FIVE: Late payment. Any notice, payment, remittance or other filing
required to be made to the Village pursuant to any tax ordinance shall be considered late
unless it is (a) physically received by the Village on or 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 Village, with adequate postage
prepaid.
SECTION SIX: Payment. Any payment or remittance received for a tax period
shall be applied in the following order: (1) first to the tax due for the applicable period;
(2) second to the interest due for the applicable period; and (3) third to the penalty for the
applicable period.
SECTION SEVEN: Certain Credits and Refunds.
(a) The Village 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.
(b) The statute of limitations on a claim for credit or refund shall be four (4) or less
years after the end of the calendar year in which payment in error was made. The Village
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 Village.
(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:
(A) The taxpayer shall submit to the local tax administrator in writing a claim for
credit or refund together with a statement specifying:
(i) the name of the locally imposed and administered tax subject to the claim;
(ii) the tax period for the locally imposed and administered tax subject to
the claim;
(iii) the date of the tax payment subject to the claim and the cancelled
check or receipt for the payment;
(iv) the taxpayer's recalculation, accompanied by an amended or revised
tax return, in connection with the claim; and
(v) 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 Village.
(B) 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:
(i) grant the claim; or
(ii) 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.
(C) 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 one (1) percent per annum, based on a year of 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.
SECTION EIGHT: Audit Procedure. Any request for proposed audit pursuant to
any local administered tax shall comply with the notice requirements of this ordinance.
(a) Each notice of audit shall contain the following information:
(i) the tax;
(ii) the time period of the audit; and
(iii) a brief description of the books and records to be made
available for the auditor.
(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 thirty (30) days after the
originally designated audit and during normal business hours.
(c) 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 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.
(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 Village.
(e) It is the duty and responsibility of every taxpayer to make available its
books and records for inspection by the Village. 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.
(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 thirty (30) days of the Village's
determination of the amount of overpayment.
(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.
SECTION NINE: Appeal.
(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:
(i) the reason for the assessment;
(ii) the amount of the tax liability proposed;
(iii) the procedure for appealing the assessment; and
(iv) the obligations of the Village during the audit, appeal, refund and
collection process.
(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 forty -five (45) days of receipt of the written notice of the tax
determination and assessment.
(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 fourteen (14) days of receipt
of the written protest and petition for hearing, unless the taxpayer requests a later date
convenient to all parties.
(d) 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.
(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 ninety (90) days after the expiration of
the forty -five day period.
SECTION TEN: Hearing.
(a) Whenever a taxpayer or a tax collector has filed a timely written protest and
petition for hearing under section nine, above, the local tax administrator shall conduct a
hearing regarding any appeal. The taxpayer may request that a hearing officer conduct
the hearing rather than the local tax administrator.
(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 fourteen (14)
days.
(c) At the hearing the local tax administrator/hearing officer 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.
(d) At the conclusion of the hearing, the local tax administrator/hearing officer
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.
SECTION ELEVEN: 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.
(a) Interest. The Village hereby provides for the amount of interest to be assessed on
a late payment, underpayment, or nonpayment of the tax, to be ten percent (10 %) per
annum, based on a year of 365 days and the number of days elapsed.
(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 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 Village 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.
SECTION TWELVE: 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.
SECTION THIRTEEN: Installment Contracts. The Village 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) working 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.
SECTION FOURTEEN: Statute of Limitations. The Village, 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.
(a) No determination of tax due and owing may be issued more than 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.
(b) If any tax return is not filed or if during any 4 -year period for which a notice of
tax determination or assessment may be issued by the Village, the tax paid was less than
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.
(c) No statute of limitations shall not apply if a fraudulent tax return was filed by the
taxpayer.
SECTION FIFTEEN: 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.
SECTION SIXTEEN: Publication 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 Village Clerk's office.
SECTION SEVENTEEN: 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:
(i) timely remove the lien at the Village's expense;
(ii) correct the taxpayer's credit record; and
(iii) correct any public disclosure of the improperly imposed lien.
SECTION EIGHTEEN: Application: This ordinance shall be liberally
construed and administered to supplement all of the Village's tax ordinances. To the
extent that any tax ordinance is in conflict with or inconsistent with this ordinance, this
ordinance shall be controlling.
SECTION NINETEEN: Severability. 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.
SECTION TWENTY: Effective Date. This ordinance shall be in full force and
effect, after passage, approval and publication as required by law.
PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES of THE
VILLAGE OF LEMONT, COUNTIES OF COOK, WILL AND DUPAGE, ILLINOIS, ON
THIS S4 day of , 2001.
John Benik
Keith Latz
Connie Markiewicz
Rick Rimbo
Debby Blatzer
Mary Studebaker
AYES NAYS PASSED ABSENT
J
f
Approved by me this �'' day of
CHA
NE M. SMOLLEN, Village Clerk
•i7 sr . Tr-
CHARLENE M. SMOLL N, Village Clerk
Y
illage President