A. If any owner or group of owners acting together transfers a majority of ownership interest or controlling interest in any business entity that is subject to the payroll and self-employment tax, the seller or transferor must furnish to the buyer or transferee a complete record of payments, accompanied by receipts, showing past payments of the payroll expense tax for the past 3 years or the period of time since the business was subject to the tax, whichever period is shorter.
B. The buyer and seller, or transferor and transferee, must also furnish written evidence to the Collector that the steps described in at least 1 of the following paragraphs have been taken:
1. The seller has filed a payroll and self-employment tax return covering the period up to the date of sale of the business entity, accompanied by payment of all payroll and self-employment tax accrued to the date of sale. This is due not later than 10 days after the sale is closed by transfer of ownership, regardless of the payment schedule;
2. The buyer or transferee has filed a written agreement with the city, undertaking to pay all payroll taxes to become due, including those accrued during the part of the year before the sale or transfer;
3. The buyer has furnished evidence to the city that the funds of the business entity are sufficient and will be sufficient to pay all payroll and self-employment tax anticipated to be due when the next payment is due, that the business entity has acknowledged its responsibility to pay the taxes and that there are no past due payroll expense taxes, penalties or interest payments owed to the city by the business entity;
4. A cash deposit or bond with a corporate surety has been filed with the Collector, sufficient to cover the amount of payroll and self-employment tax anticipated to become due for the payroll expenses before the transfer; or
5. The buyer or seller has provided an alternative means of assuring that the payroll and self-employment tax for the period before the sale will be paid, and the alternative means is reasonably sufficient, in the judgment of the Collector, to ensure the payment of the tax when due.
(Ord. 1081, passed 11-21-2001; Am. Ord. 1391, passed 12-4-2013)