(a) All taxes imposed by this chapter shall be collectible, together with any interest and penalties thereon, and any court costs and legal fees associated therewith, by suit, as other debts of like amount are recoverable.
(b) Taxes erroneously paid shall not be refunded unless a claim for refund is made within three years from the date on which such payment was made or the return was due, or within three months after final determination of the federal tax liability, whichever is later. However, the following shall apply regarding refunds of tax withheld from non-qualified deferred compensation plans (NDCP):
(1) A taxpayer may be eligible for a refund if the taxpayer has suffered a loss from NDCP. The loss will be considered sustained only in the taxable year in which the taxpayer receives the final distribution of money and property pursuant to the NDCP. Full loss is sustained if no distribution of money and property will be made by the NDCP.
(2) A taxpayer who receives income as a result of payments from a NDCP, and that income is less than the amount of income deferred to the NDCP and upon which municipal tax was withheld, then a refund will be issued on the amount representing the difference between the deferred income that was taxes and the income received from the NDCP. If different tax rates applied to the tax years in which deferrals, a weighted average of the different tax rates will be used to compute the refund amount.
(3) Refunds shall be allowed only if the loss is attributable to the bankruptcy of the employer who established the NDCP, or the employee’s failure or inability to satisfy all of the employer’s terms and conditions necessary to receive the nonqualified compensation.
(Ord. 2004-84. Passed 12-17-04.)