A. Recomputation of Tax. If the tax collector is not satisfied with the return or returns of the tax or the amount of the tax required to be paid to the City by any person, they 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 their possession or that may come into their possession. One or more deficiency determinations may be made of the amount due for one or for more than one period.

B. Interest on Deficiency. The amount of the determination exclusive of penalties, shall bear interest at the rate of one percent per month from the last day of the month following the close of the period for which the amount or any portion thereof should have been returned until the date of payment.

C. Offsetting of Overpayments. In making a determination, the tax collector may offset overpayments for a period or periods together with interest on the overpayments for a period or periods together with interest on the overpayments, against underpayments for another period or periods, against penalties, and against the interest on the underpayments. The interest on underpayments and overpayments shall be computed in the manner set forth in Section 7.48.120.

D. Penalty for Negligence or Disregard of Rules and Regulations. If any part of the deficiency for which a deficiency determination is made is due to negligence or intentional disregard of this chapter or authorized rules and regulations, a penalty of ten percent of the amount of the determination shall be added thereto.

E. Penalty for Fraud or Intent to Evade. If any part of the deficiency for which a deficiency determination is made is due to fraud or an intent to evade this chapter or authorized rules and regulations, a penalty of twenty-five percent of the amount of the determination shall be added thereto.

F. Notice and Service of Tax Collector’s Determination. The tax collector shall give to the operator written notice of their determination. The notice may be served personally or by mail. If by mail service, it shall be addressed to the operator at their address as it appears in the records of the tax collector. 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.

G. Time Within Which Notice of Deficiency Determination to be Mailed. Except in the case of fraud, intent to evade this chapter or authorized rules and regulations, or failure to make a return, every notice of a deficiency determination shall be mailed within three years after the fifteenth day of the calendar month following the period for which the amount is proposed to be determined or within three years after the return is filed, whichever period expires the later.

The limitation specified in this section does not apply in case of a tax proposed to be determined with respect to occupancies of which notice of a deficiency determination has been or is given. (Ord. 6103-NS § 1, 1991: Ord. 5971-NS § 1, 1990: Ord. 5884-NS § 1, 1988: Ord. 5060-NS § 9, 1978)