The intent of this section is to streamline and standardize procedures related to situations where tax has been remitted to the incorrect municipality. It is not intended to reduce or eliminate the responsibilities of the taxpayer or vendor to correctly pay, collect, and remit sales and lodging taxes to the town.
A. Definition: As used here, "claim for recovery" means a claim for reimbursement of sales and use taxes paid to the wrong taxing jurisdiction.
B. Notification Of Improper Tax Collections And/Or Remittances: When it is determined by the town manager of the town that sales tax owed to the town has been reported and paid to another municipality, the town shall promptly notify the vendor that taxes are being improperly collected and remitted, and that as of the date of the notice the vendor must cease improper tax collections and remittances.
C. Claim For Recovery: The town may make a written claim for recovery directly to the municipality that received tax and/or penalty and interest owed to the town, or, in the alternative, may institute procedures for collection of the tax from the taxpayer or vendor. The decision to make a claim for recovery shall include a properly executed release of claim from the taxpayer and/or vendor releasing its claim to the taxes paid to the wrong municipality, evidence to substantiate the claim, and a request that the municipality approve or deny in whole or part, the claim within ninety (90) days of its receipt. The municipality to which the town submits a claim for recovery may, for good cause, request an extension of time to investigate the claim, and approval of such extension by the town shall not be reasonably withheld.
D. Response To Claim: Within ninety (90) days after receipt of a claim for recovery, the town shall verify to its satisfaction whether or not all or a portion of the tax claimed was improperly received, and shall notify the municipality submitting the claim in writing that the claim is either approved or denied in whole or in part, including the reasons for the decision. If the claim is approved in whole or in part, the town shall remit the undisputed amount to the municipality submitting the claim within thirty (30) days of approval. If a claim is submitted jointly by a municipality and a vendor or taxpayer, the check shall be made to the parties jointly. Denial of a claim for recovery may only be made for good cause.
E. Denial Of Claim: The town may deny a claim on the grounds that it has previously paid a claim for recovery arising out of an audit of the same taxpayer.
F. Limitation: The period subject to a claim for recovery shall be limited to the thirty six (36) month period prior to the date the municipality that was wrongly paid the tax receives the claim for recovery. (Ord. 225, Series of 1994)