(a) All taxes imposed and administered by the chapter shall be collectible, together with any interest and penalties thereon, by suit, as other debts of like amount are recoverable. Except in the case of fraud, omission of twenty-five percent (25%) or more of income subject to this tax, or failure to file a return, an additional assessment shall not be made after three years from the time the return was due or filed, whichever is later. In the case of fraud, omission of twenty-five percent (25%) or more of income subject to this tax, or failure to file a return, all additional assessments shall be made and all prosecutions to recover Municipal income taxes and penalties and interest thereon shall be brought within six (6) years after the tax was due or the return was filed, whichever is later.
(b) In those cases in which the Commissioner of Internal Revenue and the taxpayer have executed a waiver of the Federal Statute of Limitations, the period within which an additional assessment may be made by the Tax Administrator shall be one year from the time of the final determination of the Federal tax liability.
(c) All delinquent tax accounts outsourced by the City to a law firm or collection agency shall be assessed a collection fee on the entire balance due equal to the contingency collection percentage charged by each law firm or collection agency as set forth in their collection contract with the City. The entire balance shall be the principal balance due plus interest, penalties, late fees, and/or other permissible fines, penalties and charges and collection fees. The collection fee shall be assessed against all payments made by the taxpayer whether or not the balance due is paid in full with one payment, or over time with more than one payment. The assessment of the collection fee shall be made by the law firm or collection agency after the delinquent account has been outsourced for collection. Additionally, court costs shall be added.
(d) Payments on delinquent amounts shall be applied in the following manner:
(1) To the taxes owed for any previous year in the order in which such taxes become due.
(2) To unpaid penalty and interest assessments in the order in which such assessments became due.
(3) To the taxpayer's current estimated tax liability.
(e) To the balance due as they are incurred but shall not be assessed a collection fee.
(f) Any amount of less than one dollar ($1.00) shall not be collected or refunded.
(Ord. 60-2012. Passed 11-19-12.)