A. Assessments or demands for any additional tax, fee, penalty, or interest shall be made by the mayor within three years after the close of the month in which the same accrued, with the following exceptions:
1. assessments or demands for any additional tax, fee, penalty or interest due as a result of failure to file a tax return as required by this chapter may be made by the mayor against the taxpayer within six years after the close of the month in which the same accrued;
2. against a taxpayer who has committed fraud an assessment may be made by the mayor within six years after the fraud is discovered;
3. against a taxpayer who misrepresented a material fact an assessment may be made by the mayor within six years after the misrepresentation is discovered;
4. if, within such three-year period, the mayor has given written notice to a taxpayer that the mayor has begun an audit, examination, or other investigation of the taxpayer or its records, then the time for making an assessment or demand shall be extended by six months; or
5. where a taxpayer has executed a written waiver of such limitations.
B. If, after receipt of a written application for a refund within the time period specified within this subsection, the mayor determines upon an audit of a taxpayer's records or an examination of a taxpayer's returns or records that the taxpayer has paid any amount of tax, penalty, or interest in excess of the amount due for the period identified in the refund application, that amount shall, at the taxpayer's option, be either credited to the taxpayer's account or refunded to the taxpayer. No refund or credit may be allowed for taxes, penalties, or interest accrued more than three years prior to the beginning of the calendar month in which the written refund application is made.
C. The denial of a refund may be appealed as set forth in § 5.40.330.
D. No interest shall be allowed on any refund granted under this chapter.
E. The mayor may enter into a written agreement, subject to city council approval, with any person relating to the liability of such person in respect of any tax, penalty, interest, fee, or assessment imposed by this chapter in settlement of a genuine and substantial dispute as to the taxpayer's liability for any taxable period or periods for which the time for filing a written application for refund has not expired under subsection (B) of this section. Such an agreement will not bind the city unless approved by the city council.
F. Notwithstanding any other provision of this section, no application for refund may be filed for taxes, penalties, or other amounts paid in relation to an estimated return made by the mayor under § 5.40.310, and any attempted application for a refund of such amounts must be denied. A taxpayer's sole remedy with respect to such payments is an appeal to the superior court from the mayor's ruling on a petition for reconsideration as provided in § 5.40.310. (Ord. 2002-09, 2002)