6.04.090 Deficiency Determination; Fraud, Evasion, Operator Delay.

City Code Section

(Replaced by Ordinance No. 184772; amended by Ordinance Nos. 187339 and 188170, effective January 20, 2017.)

A.  Deficiency determinations.  If the Division determines that a return is incorrect, that required reports or returns have not been filed, or that an Operator has otherwise failed to comply with the terms of the Code, it may compute and determine or estimate the amount required to be paid based on the facts contained in the return or returns or any other information reasonably within its possession. Once a deficiency determination is made, the amount is due and payable within ten days.  The Division may assess penalties and interest as set forth in Section 6.04.080.

1.  In making a deficiency determination, the Division may offset overpayments, if any, which may have been previously made against any deficiency for a subsequent period or periods, or against penalties and interest on the deficiency.

2.  The Division must give to the Operator or Transient (in the case of a refund request) a written notice of its deficiency determination.  The notice may be served personally or by mail.  If by mail, the notice will be addressed to the Operator at the address as it appears on the records of the Division or as the Division can best determine if the Operator has not provided that information to the Division.  In case of service by mail or any notice required by this Chapter, the service is complete at the time of deposit with the United States Post Office.

3.  Any deficiency is due and payable within 10 days.  The Operator or Transient (in the case of a refund request) may petition for a redetermination if the petition is filed within 10 days of service as provided in Section 6.04.100. Nothing prohibits the Division from extending the time for petition beyond 10 days at its sole discretion.

4.  Every deficiency determination must be made and notice mailed within 5 years after a return was originally filed, subsequently amended or the tax was paid, whichever period expires later.  In the case of the filing of a false or fraudulent return with the intent to evade this Chapter, a failure to file a required return, or willful refusal to collect and remit the tax, a deficiency determination may be made, or a proceeding for the collection of such deficiency may be commenced, at any time and is not subject to the 5 year limitation above.

B.  Operator delay.  If the Division 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 deficiency determination will be jeopardized by delay, the Division may make a deficiency determination of the tax or amount of tax required to be collected, noting the fact upon the deficiency determination.  The amount so determined is immediately due and payable, and the Operator will immediately pay such determination to the Division after service of notice thereof; provided, however, the Operator may petition, after payment has been made, for a redetermination of the Division’s assessment, if the petition is filed within 10 days from the date of the written notice from the Division.