(A) Claim of exemption. A refund shall be made, or credit allowed, for the sales tax so paid under dispute by any purchaser or user who claims an exemption pursuant to § 4-3-3-6 of this chapter. Such refund shall be made by the Finance Director after compliance with the following conditions precedent: applications for refund shall be made within 60 days after the purchase of the goods or services whereon an exemption is claimed and must be supported by the affidavit of the purchaser accompanied by the original paid invoice or sales receipt and certificate issued by the seller and shall be made upon such forms as shall be prescribed therefor.
(B) Decision; hearing. Upon receipt of an application, the Finance Director shall examine the same with due speed and shall give notice to the applicant by order in writing of the Finance Director’s decision thereon. Aggrieved applicants, within 30 days after such decision is mailed to them, may petition the Finance Director for a hearing on the claim in the manner provided in § 4-3-6-1 of this chapter and may either appeal to the District Court in the manner provided in § 4-3-6-2 of this chapter or to the Department of Revenue in the manner provided in § 4-3-6-3 of this chapter. The right of any person to a refund under this chapter shall not be assignable, except as provided in subsection (C) of this section, such application for refund must be made by the same person who purchased the goods or services and paid the tax thereon as shown in the invoice of the sale thereof.
(C) Burden of proof on claimant.
(1) A refund shall be made or a credit allowed by the Finance Director to any person entitled to an exemption where such person establishes that:
(a) A tax was paid by another person, the purchaser, on a purchase made on behalf of the person entitled to an exemption;
(b) A refund has not been granted to such purchaser; and
(c) The person entitled to the exemption paid or reimbursed such purchaser for such tax.
(2) The burden of proving that sales, services, and commodities on which tax refunds are claimed are exempt from taxation under this chapter or were not at retail shall be on the person making such claim under such reasonable requirements of proof as set forth in the rules and regulations prescribed therefor. No such refund shall be made or credit allowed in an amount greater than the tax paid.
(D) Notice of decision; appeal. Such application for refund under subsection (C) of this section shall be made on forms furnished by the Finance Department. Upon receipt of such application and proof of the matters contained therein, the Finance Director shall give notice to the applicant by order in writing of the Finance Director’s decision thereon. Aggrieved applicants, within 20 days after such decision is mailed to them, may petition the Finance Director for a hearing on the claim in the manner provided in § 4-3-6-1 of this chapter and may either appeal to the District Court in the manner provided in § 4-3-6-2 of this chapter or to the Department of Revenue in the manner provided in § 4-3-6-3 of this chapter. Any applicant for a refund under the provisions of this subsection (D) or any other person who makes any false statements in connection with an application for a refund of any taxes is guilty of a violation of this chapter and shall be punished in the manner provided by state law.
(E) Refund applied to tax deficiencies. Claims for tax monies paid in error or by mistake shall be made within three years after the date of purchase, storage, use or consumption of the goods or services for which the refund is claimed and shall be processed for refund in accordance with the rules and regulations prescribed therefor under subsection (D) of this section, except that the proceeds of any such claim for a refund shall first be applied by the Finance Department to any tax deficiencies or liabilities existing against the claimant before allowance of such claim by the Finance Department, and further, except that if such excess payment of tax monies in any period is discovered as a result of an audit by the Finance Department, and deficiencies are discovered and assessed against the taxpayer as a result of such audit, then such excess monies shall be first applied against any deficiencies outstanding to the date of the assessment but shall not be applied to any future tax liabilities.
(F) Recovery of refund received erroneously. If any person is convicted under the provisions of this section, such conviction shall be prima facie evidence that all refunds received by such person during the current year were obtained unlawfully, and the Finance Director is empowered to bring appropriate action for recovery of such refunds. A brief summary statement of the above described penalties shall be printed on each form for a refund.
(Ord. 45(1991) § 1; Ord. 13(2010) § 2)