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(A) No refund shall be made of any tax collected pursuant to this subchapter, except as provided in this section.
(B) No refund of any tax collected pursuant to this subchapter shall be made because of the discontinuation, dissolution, or other termination of a cannabis business.
(C) Whenever the amount of any tax, penalty, or interest has been overpaid, paid more than once, or has been erroneously or illegally collected or received by the city under this subchapter, such amount may be refunded to the person who paid the tax provided that a written claim for refund is timely filed with the city, pursuant to this code. The period for filing a claim for refund shall be one year from the time the tax was paid or erroneously or illegally collected; provided however, that in no event shall the period to file such claim expire prior to the shortest period allowable for filing a tax refund claim under Cal. Gov't Code § 911.2. Such claim must clearly establish claimant's right to the refund by written records showing entitlement thereto, and must clearly set forth the facts and legal theories under which the claimant believes he or she has right to a refund. Where the amount of any individual refund claim is in excess of the amount set by ordinance or resolution of the City Council relating to the settlement of general liability claims against the city by the City Manager, City Council approval shall be required.
(D) The filing of a written claim pursuant to Cal. Gov't Code § 935 is a prerequisite to any suit thereon.
(E) The Tax Administrator shall have the right to examine and audit all the books and business records of the claimant in order to determine the eligibility of the claimant to the claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant's books and business records after request by the Tax Administrator to do so.
(F) Any person entitled to a refund of taxes paid pursuant to this subchapter may elect in writing to have such refund applied as a credit against a cannabis business' s taxes for the next calendar quarter.
(G) In the event that the tax was erroneously paid and the error is attributable to the city, the amount of the tax erroneously paid shall be refunded to the claimant. If the error is attributable to the claimant, the city shall retain the amount set forth in this subchapter from the amount to be refunded to cover expenses.
(H) The Tax Administrator shall initiate a refund of any tax which has been overpaid or erroneously collected whenever the overpayment or erroneous collection is uncovered by a city audit of tax revenues.
(Ord. 1261, passed 11-6-18)