Sec. 130-63. Collection and refund of disputed tax.
(a) Collection. Should a dispute arise between the purchaser and the retailer as to whether or not any sale, commodity, or service is exempt from taxation under this article, nevertheless, the retailer shall collect and the purchaser shall pay such tax. Thereupon, the retailer shall issue to the purchaser a sales receipt, certificate, or invoice showing the tax paid, on forms prescribed by the finance director, showing the names of the retailer and the purchaser, the items purchased, the date, price, and amount of tax paid, and a brief statement of the claim for exemption. It shall be unlawful for any retailer to fail to collect, or any purchaser to fail to pay, the tax levied by this article on sales on which exemption is disputed.
(b) Refunds. A refund shall be made, or a credit allowed, in an amount equivalent to the taxes paid under dispute by any purchaser who has an exemption, as provided in this article, plus interest computed according to section 130-79(c) of the City Code. Such refund shall be made by the finance director in accordance with the following procedure:
(1) Application for refund. An application for a refund of taxes paid under dispute must be made within three years after the date of purchase of the tangible personal property or services for which the exemption is claimed. Such application shall be supported by an affidavit of the purchaser, the original paid invoice or sales receipt, and the certificate issued by the retailer. Such application shall be made upon such forms as shall be prescribed and furnished by the finance director, which forms shall contain such information as the finance director shall reasonably prescribe.
(2) Burden of proof. The burden of proof that any tangible personal property or services is exempt from taxation under this article shall be on the one claiming such exemption under such reasonable requirements of proof as the finance director may prescribe.
(3) Decisions. Upon receipt of an application for refund, the finance director shall examine the same, render a decision thereon with all due speed and give notice of such decision to the applicant by written order.
(4) Petition for hearing. An aggrieved applicant may petition in writing to the finance director for a hearing regarding said applicant's claim within 30 calendar days from the date of the notice of the denial of the refund. Such petition shall identify the amount of the refund requested and the basis for the hearing. The time period set forth in this section may, in the absolute discretion of the finance director, be waived for good cause on written request of the applicant.
(5) Hearing. The hearing before the finance director shall be informal. No transcript, rules or evidence, or filing of briefs shall be required. In lieu of the request for a hearing, the taxpayer and the city may mutually agree to file written briefs and such other written materials or documents as he or she deems appropriate and request the finance director to consider the appeal without a hearing. The submission of written material shall be considered for all purposes the same as a request for and submission of testimony and documents at a hearing.
(6) Appeal. Following the hearing, an aggrieved applicant may seek de novo review of the final decision of the finance director by either the district court or the executive director of the state department of revenue in the manner provided by section 130-64(e).
(7) Refunds not assignable. The right of any person to a refund under this article shall not be assignable, and application for refund must be made by the same person who purchased the tangible personal property or services for which an exemption is claimed.
(c) Letter of commitment. If the finance director believes that an item is not taxable under this article, he or she may submit a letter of commitment establishing this fact upon receipt of a written request by a taxpayer. The letter of commitment shall apply only to the taxpayer identified as the addressee. Such letter shall be in effect until revoked in writing by the finance director or until the city council passes an ordinance which has the effect of making the item subject to taxation under this article. (Code 1979, § 36-21; Ord. No. 2017-13, § 3, 4-3-2017; Ord. No. 2012-19, § 2, 5-7-2012)