(A) The village shall not refund or credit any taxes voluntarily paid without written protest at the time of payment in the event that a locally imposed and administered tax is declared invalidly enacted or unconstitutional by a court of competent jurisdiction. However, a taxpayer shall not be deemed to have paid the tax voluntarily if the taxpayer lacked knowledge of the facts upon which to protest the taxes at the time of payment or if the taxpayer paid the taxes under duress.
(B) (1) The statute of limitations on a claim for credit or refund shall be four or less years after the end of the calendar year in which payment in error was made.
(2) The village shall not grant a credit or refund of locally imposed and administered taxes, interest or penalties to a person who has not paid the amounts directly to the village.
(C) The procedure for claiming a credit or refund of locally imposed and administered taxes, interest or penalties paid in error shall be as follows:
(1) The taxpayer shall submit to the local tax administrator in writing a claim for credit or refund together with a statement specifying:
(a) The name of the locally imposed and administered tax subject to the claim;
(b) The tax period for the locally imposed and administered tax subject to the claim;
(c) The date of the tax payment subject to the claim and the cancelled check or receipt for the payment;
(d) The taxpayer’s recalculation, accompanied by an amended or revised tax return, in connection with the claim; and
(e) A request for either a refund or a credit in connection with the claim to be applied to the amount of tax, interest and penalties overpaid, and, as applicable, related interest on the amount overpaid; provided, however, that there shall be no refund and only a credit given in the event the taxpayer owes any monies to the village.
(2) Within ten days of the receipt by the local tax administrator of any claim for a refund or credit, the local tax administrator shall either:
(a) Grant the claim; or
(b) Deny the claim, in whole or in part, together with a statement as to the reason for the denial or the partial grant and denial.
(3) In the event the local tax administrator grants, in whole or in part, a claim for refund or credit, the amount of the grant for refund or credit shall bear interest at the rate of 6% per annum, based on a year of 365 days and the number of days elapsed, from the date of the overpayment to the date of mailing of a refund check or the grant of a credit.
(2009 Code, § 36-2-7)