Senate Sponsors: LAUZEN-KLEMM. House Sponsors: GRANBERG-WINTERS-LINDNER-RUTHERFORD-CURRIE Short description: TAXPAYERS BILL OF RIGHTS Synopsis of Bill as introduced: Creates the Local Government Taxpayers' Bill of Rights Act. Requires units of local government to: determine in what order payments will be applied to tax liabilities, penalties, and interest; adopt a statute of limitations for the determination and assessment of taxes; follow certain procedures when conducting audits or appeals; abate taxes, interest, and penalties assessed because of erroneous written information provided by a local tax administrator; appoint one or more Tax Appeal Officers; disclose the amount of tax due; establish an internal review process concerning liens; and provide copies of tax ordinances to the Department of Revenue. Limits the amount of interest and penalties that may be assessed against taxpayers. Allows taxpayers to sue units of local government that willfully or wantonly disregard tax laws, regulations, or rules. Requires the Department of Revenue to maintain copies of tax ordinances in a computerized database that is accessible to taxpayers. Contains other provisions. Preempts home rule. Effective immediately. SENATE AMENDMENT NO. 1 Provides that a local tax administrator may determine that a late payment (now, late filing) was due to a reasonable cause and abate the penalty. HOUSE AMENDMENT NO. 1. Deletes everything. Creates the Local Government Taxpayers' Bill of Rights Act. Contains only a short title. HOUSE AMENDMENT NO. 2. Deletes everything. Creates the Local Government Taxpayers' Bill of Rights Act. Requires units of local government to provide, by ordinance, for the order of the application of tax payments to tax liabilities, penalties, and interest. Requires units of local government to timely review tax returns and provide appropriate statutes of limitations. Requires taxpayers to be notified in writing of proposed audits. Requires auditors to identify overpayments to taxpayers so that taxpayers can recover the overpayment. Provides that if the overpayment is due to the incorrect application of the payment, the auditor must notify the correct local governmental entity of the error. Requires units of local government to provide a procedure for appealing a determination of tax due or an assessment. Requires taxpayers to be provided with written statements of their rights. Requires units of local government to provide, by ordinance, for the amount of interest to be assessed on late payments, underpayments, or nonpayments of tax. Provides that late filing penalties may not exceed 5% of the amount of tax required to be shown as due on a return. Provides that late payment penalties may not exceed 5% of the tax due and not timely paid or remitted. Provides that failure to file penalties may not exceed 25% of the total tax due for a reporting period. Requires units of local government to adopt procedures for claiming a credit or refund of taxes, interest, or penalties paid in error. Requires units of local government to provide, by ordinance, for a rate of interest for overpayments of tax. Prohibits the cancellation of an installment contract for the payment of delinquent tax amounts unless the taxpayer fails to pay amounts due on time and fails to cure delinquencies, or fails to demonstrate good faith in restructuring the contract. Allows taxpayers to file applications for the voluntary disclosure of taxes due. Provides that criminal penalties may not be imposed on taxpayers for non-compliance with the provisions of a locally administered tax unless the non-compliance is the result of willful or fraudulent disregard of tax laws. Requires the establishment of an internal review process concerning liens against taxpayers. Requires units of local government to publish and make copies of taxing ordinances readily available to the public upon request. Provides that posting tax ordinances on the Internet satisfies the publication requirement. Effective January 1, 2001. Last action on Bill: PUBLIC ACT.............................. 91-0920 Last action date: 00-07-07 Location: Senate Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 2 SENATE - 1 END OF INQUIRY Full Text Bill Status