Whenever the amount of any tax has been overpaid, paid more than once, or erroneously or illegally collected or received by the Tax Administrator under this chapter from a person or service supplier, it may be refunded as provided in this section as follows:
(a) Refund application. Any individual entitled to be exempt from the taxes imposed by this chapter, who paid more than $3 in such taxes, may, during the 12-month period following such payment, apply for a refund thereof, on forms provided by the Tax Administrator. Refund applications shall contain a declaration of those facts, under oath, which qualify the applicant for a refund, and shall be accompanied by the customer's bills showing the amount of such taxes billed by the service supplier during the preceding calendar year. Refund claims may be filed by an individual who used the services and paid the taxes prescribed by this chapter, either directly or indirectly, to the service user rather than to the service supplier. In the event the applicant has lost or destroyed any relevant billings or statements showing the amount of tax paid, or if the applicant indirectly paid such taxes in conjunction with the occupation of premises without receiving a specific billing therefor from the service user, the maximum refund shall be $25, or $2 for each full month of services received by the applicant, whichever is less.
(b) Written claim for refund. No refund shall be paid under the provisions of this section unless the claimant, or his or her guardian, conservator, executor, or administrator, has submitted a written claim to the Tax Administrator within one year of the overpayment or erroneous or illegal collection of said tax. To be timely, such claim must clearly establish claimant's right to the refund by written records showing entitlement thereto. Nothing herein shall permit the filing of a claim on behalf of a class or group of taxpayers, unless each member of the class has submitted a written claim under penalty of perjury as provided by this subsection or as otherwise allowed by law.
(c) Compliance with claims act. The filing of a written claim pursuant to Government Code Section 935 is a prerequisite to any suit thereon. Any action brought against the City pursuant to this section shall be subject to the provisions of Government Code Sections 945.6 and 946. The City Manager or City Council shall act upon the refund claim within the time period set forth in Government Code Sections 912.4 et seq. If the City Manager or City Council fails or refuses to act on a refund claim within the time prescribed by Government Section 912.4, the claim shall be deemed to have been rejected by the City Council on the last day of the period within which the City Council was required to act upon the claim as provided in Government Code Section 912.4. The Tax Administrator shall give notice of the action in a form which substantially complies with that set forth in Government Code Section 913.
(d) Refunds to service suppliers. The Tax Administrator may, at his or her discretion, give written permission to a service supplier, who has collected and remitted any amount of tax in excess of the amount of tax imposed by this chapter, to claim credit for such overpayment against the amount of tax which is due the City upon a subsequent monthly return to the Tax Administrator, provided that: (1) such credit is claimed in a return dated no later than one year from the date of overpayment or erroneous collection of said tax; (2) the Tax Administrator is satisfied that the underlying basis and amount of such credit has been reasonably established; and (3) in the case of an overpayment by a service user to the service supplier that has been remitted to the City, the Tax Administrator has received proof, to his or her satisfaction, that the overpayment has been refunded by the service supplier to the service user in an amount equal to the requested credit.
(e) Overpayments as credits. Notwithstanding subsections (a) through (c) above, a service supplier shall be entitled to take any overpayment as a credit against an underpayment whenever such overpayment has been received by the City within the three years next preceding a deficiency determination or assessment by the Tax Administrator in connection with an audit instituted by the Tax Administrator pursuant to Section 3.26.170(d). A service supplier shall not be entitled to such credit unless it clearly establishes the right to the credit by written records showing entitlement thereto. Under no circumstances shall an overpayment taken as a credit against an underpayment pursuant to this subsection qualify a service supplier for a refund to which it would not otherwise be entitled under the one-year written claim requirement of this section.
(Ord. 177, passed 11-6-2018)