2.7.401: EXEMPTIONS; DISPUTE PROCEDURES:
It shall be unlawful for any seller to fail to collect, or any consumer to fail to pay a tax levied by this City Tax Code on sales in which exemption is disputed.
The seller shall collect and the consumer shall pay the tax even though a dispute arises between the consumer and seller as to whether or not the sale is exempt from taxation. The seller shall then issue to the consumer a receipt or certificate on forms prescribed by the Director showing the names of the seller and consumer, the item purchased, the date, the price, the amount of tax paid and a brief statement of the claim of exemption. The consumer may then apply to the Director for a refund of the disputed taxes pursuant to subsection 2.7.810B of this article. It shall be the duty of the Director to determine the question of exemption, subject to review by the courts.
The purchase and sale of articles of tangible personal property not otherwise exempt are subject to the Sales or Use Tax imposed as well as those specific services cited as taxable in part 3 of this article. The list of exempt commodities or articles cannot be increased by implication or similarity. In all cases, the burden of proof is upon the taxpayer to establish that a sale is tax exempt.
The following sections indicate the exemptions from the imposition of the City Use or Sales Taxes, or both, as the context sets forth. (1968 Code §3-75; Ord. 76-168; Ord. 91-161; Ord. 01-42)