(A) When money has been paid into the city treasury in payment of any city taxes, except ad valorem taxes, whether payment was made voluntarily or involuntary, the mayor or chief financial officer shall authorize refunds or credits to the person who paid the tax, or to his heirs, personal representatives or assigns, of an overpayment of tax and any payment where no tax was due.
(B) When a bona fide controversy exists between the city and the taxpayer as to the liability of the taxpayer for the payment of the tax claimed to be due by the city, the taxpayer may pay the amount claimed by the city to be due and if an appeal is taken by the taxpayer from the ruling of the city within thirty (30) days and it is finally adjudged that the taxpayer was not liable for the payment of the tax or any part thereof, the city shall authorize the refund or credit as the court may direct.
(C) Refunds or credits shall be authorized with interest as provided in KRS 131.183. Refunds shall not be charged against any appropriation, but shall be deducted from tax receipts for the current fiscal year.
(D) Nothing in this section shall be construed to authorize the agency to make or cause to be made any refund except within one (1) year of the date prescribed by law for the filing the return, or the date the money was paid into the city treasury, whichever is the later, except in any case where the assessment period has been extended by written agreement between the taxpayer and the city, the limitation contained in this section shall be extended accordingly.
(E) This section shall not apply in any case in which the ordinance may be held unconstitutional, in whole or in part. In cases in which the ordinance has been held unconstitutional, taxes paid hereunder may be refunded to the extent provided by KRS 134.590, and by the ordinance held unconstitutional.
(Ord. 2-2004, passed 1-20-04)