A. Security May Be Required. The tax collector, whenever they deem it necessary to insure compliance with this chapter, may require any person subject thereto to deposit with them such security as the tax collector may determine. The amount of the security shall be fixed by the tax collector but shall not be greater than twice the person’s estimated average liability for the period for which they file returns, determined in such manner as the tax collector deems proper, or ten thousand dollars, whichever amount is the lesser. The amount of the security may be increased or decreased by the tax collector subject to the limitations herein provided. The tax collector may sell the security at public auction if it becomes necessary to do so in order to recover any tax or any amount required to be collected, interest, or penalty due. Notice of the sale may be served upon the person who deposited the security personally or by mail; if by mail, service shall be made in the manner prescribed for service of a notice of a deficiency determination and shall be addressed to the person at their address as it appears in the records of the tax collector. Upon any sale any surplus above the amounts due shall be returned to the person who deposited the security.

B. Notice of Delinquency to Persons Holding Credits or Property of Delinquent Taxpayer. If any person is delinquent in the payment of the amount required to be paid or in the event a determination has been made which remains unpaid, the tax collector may, not later than three years after the payment became delinquent, give notice thereof by registered mail to all persons having in their possession or under their control any credits or other personal property belonging to the delinquent, or owing any debts to the delinquent. After receiving the notice the persons so notified shall neither transfer nor make any other disposition of the credits, other personal property or debts in their possession or under their control at the time they receive the notice until the tax collector consents to a transfer or disposition or until twenty days elapse after the receipt of the notice. All persons so notified shall within five days after receipt of the notice advise the tax collector of all such credits, other personal property, or debts in their possession, under their control, or owing by them.

C. Action for Tax. At any time within three years after any tax or any amount of tax required to be collected becomes due and payable and at any time within three years after the delinquency of any tax or any amount of tax required to be collected, the tax collector may bring an action in the courts of this state, of any other state, or of the United States in the name of the City to collect the amount delinquent together with penalties and interest.

D. Duty of Successors or Assignees of Operator to Withhold Tax from Purchase Money. If any operator liable for any amount under this chapter sells out their business or quits the business, their successors or assigns shall withhold sufficient of the purchase price to cover such amount until the former owner produces a receipt from the tax collector showing that they have been paid or a certificate stating that no amount is due.

E. Liability of Successor for Failure to Withhold Tax. If the purchaser of a business fails to withhold from the purchase price as required, they become personally liable for the payment of the amount required to be withheld by them to the extent of the purchase price, valued in money. Within thirty days after receiving a written request from the purchaser for a certificate, the tax collector shall either issue the certificate or mail notice to the purchaser at their address as it appears on the records of the tax collector of the amount that must be paid as a condition of issuing the certificate. Failure of the tax collector to mail the notice will release the purchaser from any further obligation to withhold purchase price as above provided. The time within which the obligation of a successor may be enforced shall start to run at the time the operator sells out their business or at the time that the determination against the operator becomes final, whichever event occurs the later.

F. Refund of Tax, Penalty or Interest Paid More than Once or Erroneously or Illegally Collected. Whenever the amount of any tax, penalty or interest has been paid more than once or has been erroneously or illegally collected or received by the City under this chapter, it may be refunded provided a verified claim in writing therefor, stating the specific ground upon which the claim is founded, is filed with the department which collected said tax within three years from the date of payment. The claim shall be audited in the manner provided for in the Charter and shall be made on forms provided by the office or department which collected said tax. If the claim is approved by the department which collected said tax and by the controller, the excess amount collected or paid may be refunded or may be credited or any amounts then due and payable, from the person from whom it was collected or by whom paid and the balance may be refunded to such person, their administrators or executors. (Ord. 5060-NS § 14, 1978)