A. Estimate of Gross Receipts and Computation of Tax Penalty. If any person fails to make a return, the tax collector shall make an estimate of the amount of the gross receipts of the person, or, as the case may be, of the amount of the total rentals in this City which are subject to the tax. The estimate shall be made for the period or periods in respect to which the person failed to make a return and shall be based upon any information which is in the tax collector’s possession or may come into their possession. Upon the basis of this estimate the tax collector shall compute and determine the amount required to be paid to the City, adding to the sum thus arrived at a penalty equal to ten percent thereof. One or more determinations may be made for one or for more than one period.

B. Manner of Computation. In making a determination, the tax collector may offset over-payments 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.

C. Interest on Amount Found Due. The amount of the determinations, 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 hereof should have been returned until the date of payment.

D. Penalty for Fraud or Intent to Evade. If the failure of any person to file a return is due to fraud or an intent to evade this chapter or rules and regulations, a penalty of twenty-five percent of the amount required to be paid by the person, exclusive of penalties, shall be added hereto in addition to the ten percent penally provided in subsection A.

E. Notice Serving. Promptly after making their determination the tax collector shall give to the person written notice of the estimate, determination and penalty, the notice to be served personally or by mail in the manner prescribed for service of notice of a deficiency determination. (Ord. 6103-NS § 1, 1991: Ord. 5971-NS § 1, 1990: Ord. 5884-NS § 1, 1988: Ord. 5060-NS § 10, 1978)