A. Deposit Required; Amount: The Tax Commission, whenever it deems it necessary to insure compliance with this Chapter, may require any person subject thereto to place with it such security as the Tax Commission may determine. The amount of the security shall be fixed by the Tax Commission but, except as noted below, shall not be greater than twice the estimated average liability of persons filing returns for quarterly periods or three (3) times the estimated average liability of persons required to file returns for monthly periods, determined in such manner as the Tax Commission deems proper, or five thousand dollars ($5,000.00), whichever amount is the lesser.
In case of persons habitually delinquent in their obligations under this Chapter, the amount of the security shall not be greater than three (3) times the average liability of persons filing returns for quarterly periods or five (5) times the average liability of persons required to file returns for monthly periods or five thousand dollars ($5,000.00), whichever amount is less.
The limitations herein provided apply regardless of the type of security placed with the Tax Commission.
B. Increase in Security: The amount of the security may be increased or decreased by the Tax Commission subject to the limitations herein provided.
C. Sale of Security: The Tax Commission may sell the security at public auction if it becomes necessary so to do in order to recover any tax or any amount required to be collected, interest or penalty due. Notice of the sale may be served upon the person who placed the security personally or by mail; if by mail, service shall be made in the manner prescribed for service of a notice of the deficiency determination and shall be addressed to the person at his address as it appears in the records of the Tax Commission. Security in the form of a bearer bond issued by the United States or the state which has a prevailing market price may, however, be sold by the Tax Commission at a private sale at a price not lower than the prevailing market price thereof.
Upon any sale, any surplus above the amounts due shall be returned to the person who placed the security. (1973 Code §4.48.010)