3.62.050 Assessments – Overpayment or underpayment of tax.
A. Unless otherwise provided in this chapter or in Chapter 3.40, 3.41, 3.42, 3.52, 3.80, 3.84 or 3.88 ACC, if a taxpayer fails, neglects or refuses to file a tax return as required by this chapter, the director is authorized to assess the taxpayer’s tax obligation to the city. The director’s assessment shall be deemed prima facie correct and the assessed amount shall be the taxpayer’s tax owed to the city. The director shall notify the taxpayer in writing of the tax assessed, together with any penalty, interest, and fees, which shall be immediately due and payable.
B. The director shall not assess (or correct an assessment for) taxes, penalties, or interest due more than four years after the close of the calendar year in which they were incurred, except:
1. Against a person who is not currently registered or licensed as required by ACC Title 5, unless the person voluntarily registers or becomes licensed under ACC Title 5 before director contact;
2. Against a person who has not filed a tax return as required by this chapter or by Chapter 3.40, 3.41, 3.42, 3.52, 3.80, 3.84 or 3.88 ACC for taxes due within the period commencing 10 years prior to the close of the calendar year in which the director contacted the person in writing;
3. Against a person that has committed fraud or who has misrepresented a material fact in connection with a tax return or tax obligation under this title; or
4. Against a person that has provided the director with a signed written waiver of this assessment limitation.
C. Underpayment of Tax. If the director’s review of any tax returns or other information obtained reveals that a person has paid a tax or penalty less than that properly due, the director shall assess the additional amount found to be due and shall add interest to the unpaid tax only. The director shall notify the person by mail of the additional amount, which shall be due and payable within 30 days from the date of the notice, or within such time as the director may provide in writing. Substantial tax underpayments are further subject to ACC 3.62.070(B).
D. Overpayment of Tax.
1. If, upon receipt of an application for a refund, or during an audit or examination of the taxpayer’s records and tax returns, the director determines that the amount of tax, penalty, or interest paid is in excess of that properly due, the excess amount shall be credited to the taxpayer’s account or shall be refunded to the taxpayer. Except as provided in subsection B of this section, no refund or credit shall be made for taxes, penalties, or interest paid more than four years prior to the beginning of the calendar year in which the refund application is made or examination of records is completed.
2. The execution of a written waiver shall extend the time for applying for, or making a refund or credit of any taxes paid during, or attributable to, the years covered by the waiver if, prior to the expiration of the waiver period, an application for refund of such taxes is made by the taxpayer or the director discovers that a refund or credit is due.
3. Refunds shall be made by means of vouchers approved by the director and by the issuance of a city check or warrants drawn upon and payable from such funds as the city may provide.
4. Any final judgment for which a recovery is granted by any court of competent jurisdiction for tax, penalties, interest, or costs paid by any person shall be paid in the same manner, as provided in subsection C of this section, upon the filing with the director a certified copy of the order or judgment of the court.
5. Interest on overpayments of taxes for reporting periods beginning on or after January 1, 2005, shall be computed in accordance with RCW 82.32.060, as now enacted or hereafter amended. (Ord. 6921 § 1 (Exh. A), 2023.)