(A) Assertions of valid defense. Any taxpayer asserting a valid defense to the enforcement of the collection of any license levied in this subchapter shall proceed as provided in this section.
(1) A valid defense shall include the following:
(a) License imposed through clerical error;
(b) An illegal license; and
(c) A license levied for an illegal purpose.
(2) If the license has been paid, the taxpayer, in any time within three years after the license became due, may make a demand for a refund of the license paid by submitting to the Town Council a written statement of his or her defense and a request for a refund thereof.
(B) Action of governing body. Upon receiving a taxpayer's written statement of defense and request for release or refund, the Town Council shall within 90 days after receipt of the request determine whether the taxpayer has a valid defense to the license imposed or any part thereof and shall either release or refund that portion of the amount that is determined to be in excess of the correct license liability or notify the taxpayer in writing that no release or refund will be made. The action of the Town Council and applications for refunds shall be recorded in its minutes. If a refund is made, the Finance Department shall forward the refund to the Collector of Revenue, who shall note on all records the amount of refund, check number and date.
(C) Suit for recovery of license taxes. If within 90 days after receiving a taxpayer's request for refund or release under division (A) of this section, the Town Council has failed to refund the full amount requested by the taxpayer, has notified the taxpayer that no refund will be made, or has taken no action on the request, the taxpayer may bring a civil action against the town for the amount claimed. The action may be brought at any time within three years from the expiration of the period in which the Town Council is required to act.
(D) Civil action. Civil action brought pursuant to division (C) of this section shall be brought in the appropriate division of the general court of justice in the county. If, upon the trial, it is determined that the license or any part of it was illegal, or levied for any illegal purpose, or excessive as a result of a clerical error, judgment shall be rendered therefor with interest thereon at 6% per annum plus costs. The judgment shall be collected as in other civil actions.
(1995 Code, § 14-55)