§ 5.126. Deficiency determination and assessment; tax application errors.

(a) The Tax Administrator shall make a deficiency determination if he or she determines that any person required to pay or collect a utility users’ tax has failed to pay, collect and/or remit the proper amount of such tax by improperly or failing to apply such tax to one or more taxable utility charges. Nothing herein shall require that the Tax Administrator institute proceedings under this Section if, in the opinion of the Tax Administrator, the cost of collection or enforcement likely outweighs the benefit.

(b) The Tax Administrator shall personally deliver or mail notice of such deficiency determination to the person allegedly owing a utility users’ tax, which notice shall refer briefly to the amount of such tax owed, plus interest at the rate of 0.5% percent per month, or any fraction thereof, on the amount of such tax from the date on which such tax should have been received by the City. Within 14 calendar days after the date of service of such notice, the person allegedly owing such tax may request in writing to the Tax Administrator for a hearing on the matter.

(c) If the person allegedly owing a utility users’ tax fails to request a hearing within the prescribed time period, the amount of the deficiency determination shall become a final assessment, and shall immediately be due and owing to the City. If such person requests a hearing, the Tax Administrator shall cause the matter to be set for hearing, which shall be scheduled within 30 days after receipt of the written request for hearing. Notice of the time and place of the hearing shall be mailed by the Tax Administrator to such person at least ten calendar days prior to the hearing, and, if the Tax Administrator desires said person to produce specific records at such hearing, such notice may designate the records requested to be produced.

(d) At the time fixed for the hearing, the Tax Administrator shall hear all relevant testimony and evidence, including that of any other interested parties. At the discretion of the Tax Administrator, the hearing may be continued from time to time for the purpose of allowing the presentation of additional evidence. Within a reasonable time following the conclusion of the hearing, the Tax Administrator shall issue a final assessment (or non-assessment) thereafter by confirming, modifying or rejecting the original deficiency determination, and shall mail a copy of such final assessment to the person owing the utility users’ tax (or if no utility users’ tax is determined to be owed, to the person who requested the hearing). The decision of the Tax Administrator may be appealed pursuant to Section 5.131 of this Article. Filing an application with the Tax Administrator and an appeal to the City Administrator pursuant to Section 5.131 of this Article is a prerequisite to a suit thereon.

(e) Payment of the final assessment shall become delinquent if not received by the Tax Administrator on or before the 30th day following the date of receipt of the notice of final assessment. The penalty for delinquency shall be 10.0% on the total amount of the assessment, along with interest at the rate of 0.5% per month, or any fraction thereof, on the amount of the delinquent utility users’ tax, exclusive of penalties, from the date of delinquency, until paid. The applicable statute of limitations regarding a claim by the City seeking payment of a utility users’ tax shall commence from the date of delinquency as provided in this Subdivision.

(f) All notices under this Section may be sent by regular mail, postage prepaid, and shall be deemed received on the date established by a proof of delivery.

(Ord. No. 1210, § 1.)