(A) If the taxpayer liable for collecting the restaurant tax and filing a return fails to file a return, the City Director of Finance shall prepare an estimate of the amount of restaurant taxes due based on the best information available to him or her. The City Director of Finance may make investigations to assist in making the estimate. He or she may consider the volume of business done in the same type of business, and any other relevant matters. When the City Director of Finance estimates the restaurant taxes, the amount of interest and late charges provided by this chapter shall be added to the taxes due. He or she shall notify the taxpayer of the amount due. Such notification shall be in writing and shall contain a brief description of the method and estimated figures used in arriving at the estimated tax. Any taxpayer may dispute the amount of the estimated tax by filing within 30 days of notification of the estimated taxes a return accompanied by payment of the entire balance due together with the interest and late charges due. Such return shall be processed like any late return, and shall establish the restaurant tax liability of the taxpayer in place of the estimated amount prepared by the City Director of Finance. However, the Director may later determine that the amount shown in the return is insufficient so there is a deficiency, in the same manner as in the case of other returns.
(B) If the City Director of Finance determines, by examining available evidence, that the amount of restaurant taxes paid by the taxpayer is less than the amount required by this chapter, he or she shall notify the taxpayer of the deficiency. The City Director of Finance may use any of the methods authorized in division (A) of this section to determine whether a deficiency exists and to determine the amount of such deficiency. He or she shall thereupon notify the taxpayer of the deficiency. Such notice shall be in writing and shall state not only the amount of the deficiency but also the methods and estimates used in arriving at the amount of the deficiency. If the taxpayer does not object in writing within 30 days of the date of receiving such notice, the taxpayer shall be deemed to have accepted the revised figures for the restaurant tax liability. If the taxpayer does file written objection within the time specified, the taxpayer shall pay the fees, together with penalties and interest, under protest and may thereupon pursue administrative and judicial remedies as provided by this chapter and by state law to seek a refund.
(C) If the City Director of Finance finds that any taxpayer has overpaid, he or she shall notify them of overpayment and shall refund the amount of the overpayment to them without interest thereon.
(D) When the City Director of Finance notifies any taxpayer of any estimated amount due, alleged overpayment, or refund, he or she shall include in the notice clear instructions on how, when, and where the taxpayer may protest or appeal the decision.
(E) If any taxpayer or any person, firm, association, or corporation required by this chapter to pay a restaurant tax or to file a return shall fail to file any return for any month, such failure to file shall constitute a continuing offense against the city and the City Director of Finance may proceed to estimate and collect the restaurant taxes at any time.
(F) If a taxpayer fails to pay the restaurant tax due pursuant to this chapter and such failure continues for more than 90 days after written notice thereof, the city shall have the right to suspend such taxpayer’s license to transact business within the city until all taxes, interest and penalties due pursuant to this chapter have been paid in full.
(G) The City of Madisonville shall have a lien upon all property, real and personal, of any restaurant to secure the unpaid tax receipts due from that restaurant, which lien shall be perfected by filing a notice of the tax due and a statement of lien in the office of the Hopkins County Court Clerk’s Office.
(H) In the event the City of Madisonville is required to file suit or take other legal action to collect the sums due pursuant to this chapter, the city shall be entitled to recover its reasonable attorney fees and costs actually incurred associated therewith.
(Ord. 2015-27, passed 12-7-15)