(a) If the Tax
Collector determines that noncompliance with tax obligations results
from extensive misunderstanding or misapplication of provisions of
this Chapter it may enter into closing agreements with those taxpayers
under the following terms and conditions:
(1) Extensive
misunderstanding or misapplication of the tax laws occurs if the
Tax Collector determines that more than sixty percent (60%) of the
persons in the affected class have failed to properly account for
their taxes owing to the same misunderstanding or misapplication
of the tax laws.
(2) The Tax
Collector shall publicly declare the nature of the possible misapplication
and the proposed definition of the class of affected taxpayers and
shall conduct a public hearing to hear testimony regarding the extent
of the misapplication and the definition of the affected class.
(3) If, after
the public hearing, the Tax Collector determines that a class of
affected taxpayers has failed to comply with their tax obligations
because of extensive misunderstanding or misapplication of the tax
laws it shall issue a tax ruling announcing that finding and publish
the ruling in a newspaper of general circulation in the City and
through the next two model city tax code updates.
(4) A closing
agreement under this Section may abate some or all of the penalties,
interest and tax that taxpayers have failed to remit, or the agreement
may provide for the prospective treatment of the matter as to the
class of affected taxpayers. All taxpayers in the class shall be
offered the opportunity to enter into a similar agreement for the
same tax periods.
(5) Taxpayers
in the affected class who have properly accounted for their tax
obligations for these tax periods shall be offered the opportunity
to enter into an equivalent closing agreement providing for a pro
rata credit or refund of their taxes previously paid.
(6) The closing
agreement shall require the taxpayers to properly account for and
pay such taxes in the future. If a taxpayer fails to adhere to such
a requirement, the closing agreement is voidable by the Tax Collector
and he may assess the taxpayer for the delinquent taxes. The Tax
Collector may issue such a proposed assessment within six months
after the date that he declares that closing agreement void or within
the period prescribed by Section-550 of this Chapter.
(b) Before entering
into closing agreements pursuant to this Section, the Tax Collector
shall secure such approval as required by charter, ordinance or administrative
regulation.
(c) After a closing
agreement has been signed pursuant to this Section, it is final and
conclusive except on a showing of fraud, malfeasance or misrepresentation
of a material fact. The case shall not be reopened as to the matters
agreed upon or the agreement shall not be modified by any officer,
employee or agent of the City. The agreement or any determination,
assessment, collection, payment abatement, refund or credit made pursuant
to the agreement shall not be annulled, modified, set aside or disregarded
in any suit, action or proceeding.
(d) The Tax Collector
shall report in writing its activities under this Section to the Mayor
and City Council on or before February 1 of each year.
