§ 3.20.100. Deficiency determinations; fraud; evasion; collector delay.

(A)

Deficiency determination. If the Tax Administrator determines that the returns are incorrect, she or he may compute and determine the amount required to be paid upon the basis of the facts contained in the return or returns, or upon the basis of any information within her or his possession or that may come into her or his possession. One or more deficiency determinations may be made of the amount due for one, or more than one period; and the amount so determined shall be due and payable immediately upon service of notice, as provided in this chapter; after which, the amount determined is delinquent. Penalties on deficiencies shall be applied as set forth in Section 3.20.090.

(1)

In making a determination, the Tax Administrator may offset overpayments, if any, which may have been previously made for a period or periods, against any underpayment for a subsequent period or periods, or against penalties and interest on the underpayments. The interest on underpayments shall be computed in the manner set forth in Section 3.20.090.

(2)

The Tax Administrator shall give the lodging tax collector a written notice of her or his determination. The notice may be served personally or by mail; if by mail, the notice shall be addressed to the lodging tax collector at her or his address as it appears in the records of the Tax Administrator. In case of service by mail of any notice required by this chapter, the service is complete at the time of deposit in the United States Post Office.

(3)

Except in the case of fraud, intent to evade the provisions of this chapter or authorized rules and regulations, every deficiency determination shall be made and notice thereof mailed within three years after the last day of the month following the close of the monthly period for which the amount is proposed to be determined, or within three years after the return is filed, whichever period expires the later.

(4)

Any determination shall become due and payable immediately upon receipt of notice and shall become final within ten days after the Tax Administrator has given notice thereof; provided, however, the lodging tax collector may petition redemption and refund if the petition is filed before the determination becomes final, as provided in this chapter.

(B)

Fraud; refusal to collect; evasion. If any lodging tax collector shall fail or refuse to collect said tax or to make, within the time provided in this chapter, any report and remittance of said tax or any portion of the tax required by this chapter, or makes a fraudulent return or otherwise willfully attempts to evade the provisions of this chapter, the Tax Administrator shall proceed in such manner as she or he may deem best to obtain facts and information on which to base an estimate of the tax due.

(1)

As soon as the Tax Administrator has determined the tax due that is imposed by this chapter, from any lodging tax collector who has failed or refused to collect the same and to report and remit said tax, she or he shall proceed to determine and assess against such lodging tax collector the tax, interest, and penalties provided in this chapter. In case such determination is made, the Tax Administrator shall give a notice in the manner aforesaid of the amount so assessed. Such determination and notice shall be made and mailed within three years after discovery by the Tax Administrator of any fraud, intent to evade or failure or refusal to collect said tax, or failure to file return.

(2)

Any determination shall become due and payable immediately upon receipt of notice and shall become final within ten days after the Tax Administrator has given notice thereof; provided, however, the lodging tax collector may petition redemption and refund, if the petition is filed before the determination becomes final, as provided in this chapter.

(C)

Lodging tax collector delay. If the Tax Administrator believes that the collection of any tax or any amount of tax required to be collected and paid to the City will be jeopardized by delay, or if any determination will be jeopardized by delay, she or he shall thereupon make a determination of the tax or amount of tax required to be collected, noting the fact upon the determination. The amount so determined, as provided in this chapter, shall be immediately due and payable; and the lodging tax collector shall immediately pay same determination to the Tax Administrator after service of notice thereof. Provided, however, the lodging tax collector may petition, after payment has been made, for redemption and refund of such determination, if the petition is filed within ten days from the date of service of notice by the Tax Administrator.

(Ord. No. O2019-001, § 1 (Exh. A), 3-19-2019)