2.37.180 Constitutional apportionment.

   (a)   No tax imposed by this chapter shall be applied to a business operator so as to constitute an undue burden on interstate commerce or intercity commerce or be violative of the equal protection or due process clauses of the United States or California constitutions.

   (b)   A business operator who contends that the application of a tax imposed by this chapter on the business operator constitutes an undue burden on interstate commerce or intercity commerce or violates the equal protection or due process clauses of the United States or California constitutions may apply to the tax administrator for an apportionment of the tax imposed on the business operator that would remove the constitutional violation by filing a written request with the tax administrator that explains the factual and legal basis for the claimed constitutional violation and proposes a method of apportionment that would resolve the alleged constitutional violations. The application for apportionment shall be filed in advance or within one year of the date the quarterly return was due.

   (c)   The tax administrator, in consultation with city attorney, shall review the application and within sixty (60) days of the filing of the application, which deadline may be extended for an additional sixty (60) days, issue a decision on the application. The decision on the application shall be served on the business operator either personally or by U.S. mail to the most recent address for the challenger in the tax administrator’s records. The decision can be challenged under Section 2.37.160.

(Ord. 5581 § 1 (part), 2022: Ord. 5607 § 6, 2024)

2.37.190 Refunds.

   (a)   A business operator who believes that any tax, penalty, or interest has been illegally, erroneously, or mistakenly paid to, collected by, or otherwise received by the city may file a claim for a refund of the amount of tax, penalty, or interest claimed to have been improperly received by the city.

   (b)   The claim must be filed with the tax administrator and signed under penalty of perjury by the business operator. The claim must state:

      (1)   The legal and factual basis for the refund claim;

      (2)   The amount of tax, penalty, or interest allegedly improperly received by the city;

      (3)   The date or dates that the improper payments were made to the city; and

      (4)   The address of the claimant.

   (c)   The claim must be filed with the tax administrator within two (2) years of the date of the allegedly improper payment to the city.

   (d)   The tax administrator shall provide a written decision on the claim within thirty (30) days of the filing of the claim by serving the decision on the claimant either personally or by U.S. mail to the address provided in the claim. Service is effective upon deposit of the response in the U.S. mail.

   (e)   A claimant may challenge the tax administrator’s decision on a refund claim under Section 2.37.160.

   (f)   This section does not apply to:

      (1)   A claim for a refund arising out of a decision of the tax administrator, city manager, or city manager’s designee under Sections 2.37.150, 2.37.160, 2.37.170, or 2.37.190; or

      (2)   A claim that could have been asserted by the claimant, but was not, under Sections 2.37.150, 2.37.160, 2.37.170, or 2.37.180.

(Ord. 5581 § 1 (part), 2022; Ord. 5607 § 7, 2024)

2.37.200 Audits.

   (a)   The tax administrator may conduct an audit of any business operator to ensure proper compliance with the requirements of this chapter.

   (b)   To initiate an audit the tax administrator shall provide written notice to the business operator that is the subject of the audit of the initiation of the audit by serving the notice personally or by U.S. mail to the most recent address for the business operator in the tax administrator’s records. The notice shall state the period of time subject to the audit.

   (c)   Notice of the initiation of an audit for a quarter for which either a business tax filing for a new business or quarterly tax return was submitted under Section 2.37.100 or Section 2.37.110 must be served within three (3) years of the last day of the quarter to which the filing or return applied.

   (d)   Notice of the initiation of an audit for a quarter for which neither a business tax filing for a new business nor a quarterly tax return was submitted under Section 2.37.100 or Section 2.37.110, but for which the business was registered as a business under Section 4.60.030, must be served within five (5) years of the last day of the quarter for which the filing or return should have been filed.

   (e)   Notice of the initiation of an audit for a quarter for which neither a business tax filing for a new business nor a quarterly tax return was submitted under Section 2.37.100 or Section 2.37.110, and for which the business was not registered as a business under Section 4.60.030, must be served within seven (7) years of the last day of the quarter for which the filing or return should have been filed.

   (f)   Upon completion of an audit, the tax administrator may make an initial determination under subdivision (a) of Section 2.37.150 of any taxes, penalties, and interest determined to be owed and not paid for the audit period. The initial determination must be issued within ninety (90) days of the completion of the audit. If a business operator subject to audit is unable or unwilling to provide sufficient records to enable the tax administrator to verify compliance with this chapter, the tax administrator is authorized to make a reasonable estimate of the amount of tax due and the reasonable estimate shall be entitled to a rebuttable presumption of correctness.

(Ord. 5581 § 1 (part), 2022)

2.37.210 Maintenance and review of records.

   (a)   Business operators must maintain for six (6) years records of square footage and information necessary to calculate the tax. If the tax administrator serves notice of the initiation of an audit, the information pertinent for the quarters subject to the audit must be maintained until the conclusion of the audit.

   (b)   The tax administrator may with reasonable notice inspect the premises and records of the business operator.

   (c)   The tax administrator may request the city council to issue an administrative subpoena for records of a business operator or other persons with relevant information.

(Ord. 5581 § 1 (part), 2022)

2.37.220 Confidentiality of records.

   All documents submitted to the city by a business operator under this chapter and all documents of a business operator inspected by the tax administrator in the conduct of an audit are presumed to be confidential and will not be subject to public inspection to the fullest extent allowed by law and must be maintained so that the contents of the documents will not become known except to persons charged with the administration of this chapter. Confidential documents may be shared with consultants retained by the city to aid in the administration of this chapter, provided the consultants agree to maintain the confidentiality of the documents. However, nothing in this section precludes the city from aggregating information and releasing it in a manner that does not identify any particular business or connect any information with a particular business.

(Ord. 5581 § 1 (part), 2022)

2.37.230 Action to collect delinquent taxes.

   (a)   Any tax, penalty, and interest imposed on a business operator under this chapter is a debt owed by the business operator to the city, which may be recovered in an action filed by the city in a court of competent jurisdiction.

   (b)   An action under this section shall be filed within three (3) years of an initial determination becoming final under subdivision (b) of Section 2.37.150, the issuance of a final determination under subdivision (d) of Section 2.37.150 that is not appealed, the issuance of a final determination under subdivision (c) of Section 2.37.160 that is not appealed, or the issuance of a decision under subdivision (d) of Section 2.37.170.

   (c)   During the pendency of an action filed under this section, interest will continue to accrue under subdivision (b) of Section 2.37.140 until the entry of judgment.

   (d)   Before filing an action, the city may serve the business operator either personally or by U.S. mail at the most recent address for the business operator in the tax administrator’s records with notice of the pending action and give the business operator fifteen (15) days to pay all of the delinquent taxes, penalties, and fees. If all of the of the delinquent taxes, penalties, and fees are not paid within the fifteen-day period, then an additional penalty of 25% of the amount of the delinquent tax (including accrued penalties and interest) shall be added to the total delinquency and may be recovered in the action.

(Ord. 5581 § 1 (part), 2022)

2.37.240 Errors not binding on the city.

   No error by the tax administrator or any other officer, employee, or agent of the city in the application of this chapter shall prevent, prejudice, or estop the collection by or for the city of the full amount of tax owed by any person under this chapter.

(Ord. 5581 § 1 (part), 2022)

2.37.250 Dates.

   If the last day for the performance of any act under this chapter is a Saturday, Sunday, or holiday recognized by the city, then the date for the performance of that act is extended to the next day that is not a Saturday, Sunday, or holiday recognized by the city.

(Ord. 5581 § 1 (part), 2022)

2.37.260 Rules and regulations.

   (a)   The tax administrator may adopt rules and regulations that are not inconsistent with the provisions of this chapter as may be necessary to aid in the application and enforcement of this chapter.

   (b)   The tax administrator may adopt rules providing for the service or filing of any notices, filings, returns, or submittals required by this chapter. These rules may provide alternative means for serving or filing any notice, filing, return, or submittal, and may clarify the method of serving or filing any notice, filing, return, or submittal provided for in this chapter.

(Ord. 5581 § 1 (part), 2022)