703.07 LIABILITY OF GUEST; ASSESSMENT; PETITION FOR REASSESSMENT; PENALTIES.
   If any operator collects the tax imposed by or pursuant to this chapter and fails to remit the tax to the City as prescribed, he or she shall be personally liable for any amount collected which he or she failed to remit. The Director of the Department of Taxation may make an assessment against the operator based upon any information in the Director of the Department of Taxation's possession.
   If any operator fails to collect the tax or any transient guest fails to pay the tax imposed by or pursuant to this chapter on any transaction subject to the tax, such operator or transient guest shall be personally liable for the amount of the tax applicable to the transaction. The Director of the Department of Taxation may make an assessment against either the operator or transient guest, as the facts may require, based upon any information in his or her possession.
   An assessment against an operator in cases where the tax imposed by or pursuant to this chapter has not been collected or paid, shall not discharge the transient guest's liability to reimburse the operator for the tax applicable to such transaction.
   In each case, the Director of the Department of Taxation shall give to the operator or transient guest an assessed written notice of the assessment. The notice may be served upon the operator or transient guest assessed personally or by ordinary mail. An assessment issued against either, pursuant to the provisions of this chapter, shall not be considered an election of remedies, nor a bar to an assessment against the other for the tax applicable to the same transaction, provided that no assessment shall be issued against any operator or transient guest for the tax due on a particular transaction if the tax has actually been paid by another.
   The Director of Taxation may make an assessment against any operator who fails to file a return required by this chapter or fails to remit the proper amount of tax in accordance with this chapter. When information in the possession of the Director of the Department of Taxation indicates that the amount required to be collected is, or should be, greater than the amount remitted by the operator, the Director of the Department of Taxation may, upon the basis of test checks of an operator's business for a representative period which are hereby authorized, determine the ratio which the tax required to be collected under this chapter bears to the hotel's lodgings, which determination shall be the basis of an assessment as herein provided in this chapter. Notice of such assessment shall be made in the manner prescribed in this chapter.
   Unless the operator or transient guest, to whom the notice of assessment is directed, files, within thirty days after service thereof, either personally or by registered or certified mail, a petition in writing, verified under oath by the operator, transient guest or his or her authorized agent having knowledge of the facts, setting forth with particularity the items of assessment objected to, together with the reasons for objections, the assessment shall become conclusive and the amount thereof shall be due and payable from the operator or transient guest so assessed, to the Department of Taxation, City of Brook Park, Ohio. When a petition for reassessment is filed, the Director of the Department of Taxation shall assign a time and place for the hearing of the petition and shall notify the petitioner thereof by ordinary mail, but the Director of the Department of Taxation may continue the hearings from time to time if necessary.
   When any operator or transient guest files a petition for reassessment as provided in this chapter, the assessment made by the Director of the Department of Taxation, together with penalties thereon, shall become due and payable within ten days after notice of the finding made at the hearing has been served, either personally or by ordinary mail, upon the party assessed.
   A penalty shall be imposed on operators who are required to remit hotel and motel taxes and who fail to make such remittance by means of electronic transfer, or who fail to utilize the required specific format, as required under Section 703.06(b) and (c), in the amount of ten percent of the sum which the operator was required to remit by electronic funds transfer.
   All taxes imposed and all moneys collected or required to be collected under the provisions of this chapter and remaining unpaid after they are due shall be penalized as follows:
   (a)   Ten percent per month, or fraction thereof, or fifty dollars ($50.00), whichever is greater, for a first offense; or
   (b)   For a second and all subsequent offenses, ten percent per month, or fraction thereof, or one hundred dollars ($100.00), whichever is greater.
   (c)   If the Director of the Department of Taxation determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of twenty-five percent of the amount of the tax shall be added thereto, in addition to the penalties stated in subsections (a) and (b) hereof.
   All taxes imposed and all moneys collected or required to be collected by operators under the provisions of this chapter and remaining unpaid after they become due shall bear interest at the rate of one and one-half percent per month or fraction thereof together with the costs of any collection actions, taxed and to be taxed. No additional penalty provided under the terms of this chapter shall be imposed during the pendency of any hearing provided herein, nor during the pendency of any appeal to the Board of Review provided for herein.
(Ord. 8746-2000. Passed 12-5-00.)