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(a) Any individual or entity that contracts or subcontracts, for any portion of work on a construction project in the Munnicipality, (for purposes of this section, hereafter "the contractor"), to another individual or entity for the performance of construction work ("the subcontractor"), shall be liable for any failure of the subcontractor to pay or forward for payment all taxes required to be withheld or paid under provisions of this Chapter, together with applicable penalties and interest for nonpayment as provided in Section 128.10 above. It is the intention to impose liability for non-payment of taxes, and any applicable interest and penalties, upon the entire chain of construction employment and contracting, from wage worker or independent contractor up through each subcontractor, contractor, general contractor, and even to the owner, except as that owner may be exempt under subsection (b) herein, to ensure that income taxes on construction projects are paid as required. Issuance of an IRS Form 1099 is not a defense, but may be evidence of liability under this section.
(b) Notwithstanding the foregoing, the owner or owners of residential premises and who also occupy those premises shall be exempt from liability under this section if the total cost of the project at the residence is fifty thousand dollars ($50,000) or less and the owner or owners have obtained written confirmation that the contractor employed for the project is registered with the Municipality prior to the commencement of work.
(c) The Municipality will not issue any type of building, occupancy or construction permit to any individual or entity unless first presented with documentation from the Administrator that all taxes required to be paid or withheld under this Chapter have been paid to the Municipality.
(d) The Municipality will not release draws for work performed on any construction project undertaken by the Municipality to any individual or entity working on such project until presented with documentation from the Tax Administrator that all taxes required to be paid or withheld under this Chapter have been paid and forwarded to the Municipality.
(Ord. 31-2015. Passed 12-21-2015.)