City Council Study Session Agenda and Packet 2012 05 08

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all personnel costs of the city. Said expenses shall constitute a liability of the taxpayer and may at the city's option be satisfied from the proceeds of the sale of the property distrained. Section 7. Section 3.20.510 of the Louisville Municipal Code is hereby amended to read as follows (words to be deleted are stricken through; words to be added are underlined): Sec. 3.20.510.Procedure for refund of disputed tax. A refund shall be made or credit allowed for tax paid under dispute by any person who claims that the transaction or item was not taxable or claims an exemption as provided in this chapter. Such refund shall be made by the finance director only after it is determined that such transaction or item is not taxable or that the claimed exemption is warranted, and only after compliance with the following conditions precedent: A. Application. An application for a refund of sales or use tax paid under dispute by a purchaser or user who claims an exemption under this chapter shall be made within 60 days after the date of purchase, storage, use or consumption of the goods or services upon which an exemption is claimed. An application for refund of taxes paid in error or by mistake shall be made within three years after the date of purchase, storage, use or consumption of the goods for which the refund is claimed. Such application must be accompanied by the original paid invoice or sales receipt and must be made upon such forms as shall be prescribed and furnished by the finance director. B. Burden of proof. The burden of proving that any transaction or item is not taxable or is exempt from the tax shall be upon the person asserting such claim under such reasonable requirements of proof as the finance director may prescribe. C. Processing costs. In all cases, applications for refund will be reviewed and processed in a timely manner. If however, the taxpayer does not provide the required documentation in an organized format and staff must go through the taxpayer's files, folders, boxes, or other documents or records, in any form, in order to substantiate the claim, the city shall be entitled to charge an hourly fee for time spent in excess of eight (8) hours deciphering, organizing, gathering, or in any way assembling taxpayer records to substantiate such claim. Such fee shall be set by the city manager or the finance director as the manager's designee, and shall be based on the actual labor costs incurred by the city for such time spent. Such fees shall be a liability of the taxpayer which, if not separately paid upon billing by the city, may be deducted from any refund amount to be paid to the taxpayer. DG. Decisions. Upon receipt of an application, the finance director 6 16