(a) Deficiency Determinations. Whenever the County Recorder has reason to believe that a person has failed to pay or has underpaid the tax imposed by this Article 12-C, the County Recorder may compute and determine any tax, penalty, or interest deficiency upon the basis of any information within the County Recorder’s possession or that may come into the County Recorder’s possession. The County Recorder may make one or more deficiency determinations for the same deed, instrument or writing by which any lands, tenements, or other realty sold within the City and County of San Francisco is granted, assigned, transferred, or otherwise conveyed.
(b) Deficiency Determinations; Notice. Upon making a determination pursuant to this Section 1115, the County Recorder shall record the notice of deficiency determination, and shall give to the person or persons liable for the tax, and to the owner or owners of the real property described in the notice, as said owners are shown on the records of the County Assessor, written notice of the County Recorder’s determination. Except in the case of fraud, intent to evade the tax imposed by this Article 12-C
, or the failure to either record the deed, instrument or writing effecting a transfer subject to the tax or file the affidavit required under Section 1111(d), in which case there is no statute of limitations, and unless the person liable for the tax has agreed in writing to extend the period for service of a notice of deficiency determination prior to such period expiring, every notice of a deficiency determination shall be served, in the manner provided by Section 1115.3, within three years after the later of:
(1) The date the tax became delinquent;
(2) The date the person liable for the tax recorded the deed, instrument or writing effecting a transfer subject to the tax with the County Recorder’s Office, if such document was recorded; or
(3) The date the person liable for the tax furnished to the County Recorder the affidavit required under Section 1111(d), if the deed, instrument or writing effecting a transfer subject to the tax was not recorded with the County Recorder’s Office.
(c) Deficiency Determinations; Content. The County Recorder’s notice of deficiency determination shall include the following information:
(1) The amount of delinquent tax;
(2) The interest that has accrued and shall continue to accrue on the delinquent tax;
(3) The delinquency penalty then due;
(4) The additional penalty that shall accrue if the tax is not paid by the date the deficiency determination is due and payable;
(5) A description of the lands, property, or other realty sold that was transferred without full payment of tax; and
(6) A notice that if the tax, penalties, and interest are not paid within 30 days after service of the notice of deficiency determination upon the person liable for the tax, the County Recorder may commence collection actions for the tax, including, but not limited to, the lien proceedings under Section 1115.1.
(d) Deficiency Determinations; Due and Payable. The County Recorder’s deficiency determination shall be due and payable 30 days after service of the notice of deficiency determination upon the person liable for the tax.
(e) Jeopardy Determinations.
(1) Duty of County Recorder. If the County Recorder believes that the collection of any tax imposed by this Article 12-C will be jeopardized, in whole or in part, by delay, the County Recorder shall serve notice upon the person determined to be liable therefor of his or her determination of jeopardy and of the tax required to be paid to the City, and demanding immediate payment thereof, together with any interest and penalty determined to be due. The County Recorder may consider all facts and circumstances relevant to determining whether the collection of any tax will be jeopardized by delay, including but not limited to indications that the person liable for the tax intends or is taking action to discontinue business activities in the City, dissipate or otherwise remove assets from the City, or sell, exchange, assign, or otherwise dispose of personal or business income or property. The County Recorder also may consider whether the person liable for the tax is insolvent or likely to become insolvent after the taxes at issue are assessed or collected; and whether the person liable for the tax is or has been uncooperative or unresponsive in connection with any investigation, examination, audit, deficiency determination, assessment, or collection action or procedure undertaken by the County Recorder or Tax Collector.
(2) When Due and Payable. A jeopardy determination of tax, interest, or penalty is immediately due and payable upon the service of the notice of jeopardy determination on the person determined to be liable therefor. Prior to service of such notice, the County Recorder or Tax Collector may, notwithstanding the provisions of Section 1115.4, record a lien in the amount due as set forth in the notice of jeopardy determination. Immediately upon service of such notice, the Tax Collector may, notwithstanding the provisions of Section 1115.4, commence lien proceedings under Section 1115.1, seek summary judgment pursuant to Section 1115.5, and/or may commence a collection action in any court having jurisdiction over the matter.
(3) Service of Notice. Service of notice of a jeopardy determination shall be provided in the manner set forth in Section 1115.3.
(4) Effect of Non-Payment. If the amount specified in the jeopardy determination is not paid within 15 days after service of notice thereof upon the person against whom the determination is made, the additional 10% penalty provided in 1115.2(a)(1) shall attach to the tax or the amount of the tax required to be collected, regardless of the number of days that have passed since the date of the original delinquency.
(f) Effect of County Recorder’s Determination. The County Recorder’s issuance of a notice of deficiency determination or a notice of jeopardy determination with respect to any document or transaction, or the County Recorder’s failure to issue such a notice, may not be treated as precedent for the treatment of any future document or transaction. The County Recorder’s issuance of a deficiency determination or a jeopardy determination to a person for a document or transaction shall not bar the County Recorder from making further determinations regarding the liability of the person for that document or transaction.