(A) Duty to determine whether tax due. Each person has the duty to determine whether the business he or she conducts is taxed under this chapter and if so, whether that tax has been paid for the current tax year.
(B) Tax collector to investigate. If the tax collector has reason to believe that a person is conducting a business in the city in violation of the chapter, the tax collector shall conduct an investigation to determine the person's tax liability.
(C) Duty to keep books. Each person who conducts a business taxed under this chapter shall keep all records and books necessary to compute the tax liability. If a person fails to keep books and records as required, the tax collector shall make a determination of that person's tax liability from the information available.
(D) Duty to permit inspection. Each person who conducts business in the city shall permit the tax collector to inspect the business premises during normal business hours to determine the nature of the business conducted there and to examine the books and records to determine the nature and amount of business transacted.
(E) Duty to post license. A licensee shall post the license or licenses conspicuously in the place of business licensed. If the licensee has no regular place of business, the license must be kept where it may be inspected at all times by the proper city officials. If a machine is licensed, the license shall be affixed to the machine.
(F) Notice of deficiency. If the tax collector determines that a person has not paid the full amount of tax due under this chapter, either for the current license year or for a prior license year, the tax collector shall give the person written notice of the deficiency, in accordance with division (L) of § 110.03. The notice of deficiency shall specify the total amount of tax due; the section of this chapter upon which the tax is based; the amount of tax paid; any interest due; the balance owed; the manner and time period in which the person may respond to the notice of the deficiency; and the consequences of failing to respond as specified.
(G) Request for a conference. The person may, within ten days after the day on which notice is served, request a conference in writing. The request shall specify the person's objections to the notice of deficiency. By way of illustration but not limitation, a person who receives notice of a deficiency may object on the following grounds:
(1) That the tax due has already been paid;
(2) That the tax collector miscalculated the amount of tax due;
(3) That the tax collector based his calculation on incorrect or insufficient information concerning either the nature or the amount of business conducted; or
(4) That the tax collector based the determination on an erroneous interpretation of a section of this chapter that establishes a category of business subject to a particular tax.
(H) Deficiency to become final. If the taxpayer fails to request a conference under division (G) of this section, the deficiency becomes final and the tax collector shall proceed to collect the deficiency.
(I) Conference held. If the taxpayer requests a conference, the tax collector shall not proceed to collect the deficiency until hearing the taxpayer's objections and determining that the deficiency should become final. The tax collector shall maintain a record of each conference held for three years in accordance with division (G) of this section. The record shall contain the name of the taxpayer, the date of the conference, a brief statement of the issues discussed, and the results of the discussion. After three years, the tax collector shall dispose of the record in compliance with G.S. 121-5.
(J) Collection of deficiency.
(1) The tax collector may use any of the following methods to collect a deficiency:
(a) Criminal prosecution in accordance with division (K)(1) of this section;
(b) Equitable relief in accordance with division (K)(2) of this section;
(c) The remedies of levy, sale, attachment and garnishment in accordance with G.S. 160A-207; or
(d) The remedies of levy and sale of real and personal property of the taxpayer within the city in accordance with the provisions of G.S. 105-109.
(2) Any person who commences or continues to conduct a business taxed under this chapter without payment of the tax is liable for the additional tax of 5% every 30 days as imposed by G.S. 105-109. No license shall be granted until the tax plus the percentage penalty has been paid.
(K) Enforcement of chapter.
(1) Criminal remedies. Conducting business within the city without having paid the privilege license tax imposed by the chapter, or without a valid license issued in accordance with this chapter, or without posting a license in compliance with division (E) of this section is a misdemeanor, punishable as provided in G.S. 105-109. Each day that a person conducts business in violation of this chapter is a separate offense. Payment of a fine imposed in criminal proceedings in accordance with this section does not relieve a person of the liability for taxes imposed under this section.
(2) Equitable remedies. In addition to the criminal remedies set forth in subsection (1) of this division and in compliance with G.S. 160A-175(d), the city may seek an injunction against any person who conducts a business in violation of this chapter.
(Ord. O-1998-29, passed 6-16-98)