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Whenever the Tax Collector deems it necessary to ensure compliance with the Business and Tax Regulations Code, the Tax Collector may require any person subject thereto to deposit with the Tax Collector such security as the Tax Collector may determine. The amount of the security shall be fixed by the Tax Collector, but shall not be greater than twice the person’s estimated average liability for the period for which said person files returns, determined in such manner as the Tax Collector deems proper. The amount of the security may be increased or decreased by the Tax Collector subject to the limitations herein provided. The Tax Collector may sell the security at public auction if it becomes necessary to do so in order to recover any tax or any amount required to be collected and remitted to the City, including any interest or penalty due. Notice of the sale shall be served upon the person who deposited the security and upon the taxpayer, if different, personally or by mail; if by mail, service shall be made in the manner prescribed for service of a notice of a deficiency determination as set out in Section 6.11-2, and shall be addressed to the person at said person’s address as it appears in the records of the Tax Collector. Upon any sale, any surplus above the amounts due shall be returned to the person who deposited the security. The return of a cash security shall include interest at a rate equal to the annual fiscal year interest rate earned by the City and County of San Francisco’s “Pooled Interest Account” invested and managed by the Treasurer.
(Added by Ord. 18-98, App. 1/16/98; amended by Ord. 26-04, File No. 031990, App. 2/19/2004; Ord. 291-10, File No. 101099, App. 11/18/2010; Ord. 152-21, File No. 210828, App. 9/29/2021, Eff. 10/30/2021)
If any person is delinquent in the payment of the amount required to be paid by said person, or in the event a determination has been made against any person which remains unpaid, the Tax Collector may, not later than three years after the payment became delinquent, give notice thereof by mail or by personal service to any persons in the State of California having in their possession or under their control any credits or other personal property belonging to the delinquent person, or owing any debts to the delinquent person. After receiving such notice, the persons so notified shall, within five days of the receipt of the notice, advise the Tax Collector by sworn writing of all such credits, personal property, or debts. Further, the persons so notified shall neither transfer nor make any other disposition of the credits, other personal property, or debts in their possession or under their control at the time they receive the notice until the Tax Collector consents to a transfer or disposition or until 30 days elapse after the person has advised the Tax Collector in a sworn writing of all such credits, personal property, or debts. Unless otherwise required by law, if persons so notified transfer such assets in violation of the provisions of this Section 6.10-2, they shall become indebted to the Tax Collector for the value of the property transferred, or the amount owed to the City by the delinquent, whichever is less.
(Added by Ord. 18-98, App. 1/16/98; amended by Ord. 26-04, File No. 031990, App. 2/19/2004; Ord. 291-10, File No. 101099, App. 11/18/2010; Ord. 152-21, File No. 210828, App. 9/29/2021, Eff. 10/30/2021)
(a) (1) The Tax Collector may bring an action in the courts of this State, or any other state, or of the District of Columbia, or of the United States and its territories or possessions, or any other forum where permitted by law to recover in the name of the City any amount of taxes due and payable under the Business and Tax Regulations Code and remaining unpaid, together with penalties, interest, and costs, including reasonable attorneys' fees.
(2) In any action filed pursuant to this Section 6.10-3, the Complaint shall attach a certificate executed by the Tax Collector or the Tax Collector’s representative that contains the following information:
(A) the name of the operator, taxpayer, or other person determined to be liable for the tax;
(B) the description of the operator’s, taxpayer’s, or other person’s business or activity against which the tax has been assessed;
(C) the location and/or address of the business or activity;
(D) the amount of the tax, penalty, and interest remaining unpaid as of the last day of the month prior to the month in which the Complaint is filed; and
(E) the fact that the City has complied with all provisions of the Business and Tax Regulations Code in the computation and the levy of the tax, penalty, or interest.
(3) In prosecuting such actions, the Tax Collector shall be entitled to all of the provisional remedies provided by law. Any such action shall be commenced within three years from the date any amount of taxes became due and payable, or from the date the return is required to be filed or actually filed, whichever period expires later; except in the case of any deficiency determination pursuant to Sections 6.11-1 et seq. or 6.11-1.1 et seq., as applicable, 6.12-1 et seq., or 6.13-1 et seq., in which case any such action shall be commenced within three years after such determination became final. However, there shall be no limitation on the time in which such actions may be commenced in cases of fraud, intent to evade the Business and Tax Regulations Code, or failure to file a return.
(b) When the amount of any tax, penalty or interest which has become due and payable remains unpaid for 15 days, the Tax Collector may record a tax lien with the Assessor-Recorder, thereby creating a tax lien on all of the assessee's property and rights to property, including realty, personalty, or intangibles. The Tax Collector may record or file such tax lien in the office of the Recorder of any California county, with the California Secretary of State, and with any other California public entity that is otherwise authorized by law to record liens. The Tax Collector may record or file such tax liens in any other office of any other jurisdiction as permitted by law. The tax lien shall identify the Tax Collector as the lienor, and the amount of the lien. Simultaneously with the recording, a copy of the tax lien shall be mailed to or personally served upon the taxpayer or other person determined to be liable for the tax at said person's last known address based upon the information, contained in the Tax Collector records. The tax lien after recordation has the force, effect and priority of a judgment lien and continues for 10 years from the date of recording, unless sooner released or otherwise discharged. This remedy and any other remedies for collection of any taxes, together with all administrative collection costs, interest, penalties and other costs and charges, including reasonable attorneys' fees, are cumulative and may be pursued alternatively and consecutively as the Tax Collector determines.
(Added by Ord. 18-98, App. 1/16/98; amended by Ord. 26-04, File No. 031990, App. 2/19/2004; Ord. 291-10, File No. 101099, App. 11/18/2010; Ord. 5-13
, File No. 121064, App. 1/24/2013, Eff. 2/23/2013; Ord. 207-20, File No. 200759, App. 10/9/2020, Eff. 11/9/2020; Ord. 152-21, File No. 210828, App. 9/29/2021, Eff. 10/30/2021; Ord. 224-23, File No. 230898, App. 11/3/2023, Eff. 12/4/2023)
(a) If the Tax Collector determines that a taxpayer has failed to pay or has underpaid a tax, that an operator has failed to collect and remit all of a third-party tax, or that a person other than the taxpayer is jointly and severally liable for any unpaid or underpaid tax, including third-party taxes, the Tax Collector may compute and determine any tax deficiency upon the basis of the return or returns or upon the basis of any other information within the Tax Collector's possession or that may come into the Tax Collector's possession. One or more deficiency determinations of the amount due may be made for one or for more than one period.
(b) The amount of the determination, exclusive of penalties, shall bear interest at the rate of 1 percent per month, or fraction thereof, from the 15th day after the close of the month or the monthly period for third-party taxes, or from the last day of February following the close of the annual period, for which the amount or any portion thereof should have been remitted until the date of payment in full, or, in the case of stadium operator admission taxes, from the due dates of said tax as set forth in Article 11, Section 804.
(c) In making a determination, the Tax Collector may offset overpayments for a period or periods together with interest on the overpayments, against underpayments for another period or periods, against penalties, and against the interest on the underpayments. The interest on underpayments and overpayments shall be computed in the manner set forth in Section 6.17-1 for underpayments and in Section 6.15-2 for overpayments.
(d) This Section 6.11-1 shall apply as follows:
(1) to all returns and payments for tax periods ending and taxable events occurring on or before December 31, 2020, except as provided in subsections (d)(2) and (d)(3) of this Section 6.11-1;
(2) to all returns and payments for registration years ending on or before June 30, 2021 with respect to the registration fee imposed under Section 855 of Article 12; and
(3) to all returns and payments for fiscal years ending on or before June 30, 2021 with respect to fees, assessments, and other charges subject to this Article 6 that are imposed on a fiscal year basis.
(a) If the Tax Collector determines that a taxpayer has failed to make a return or has failed to pay or has underpaid a tax, that an operator has failed to collect and remit all of a third-party tax, or that a person other than the taxpayer is jointly and severally liable for any unpaid or underpaid tax, including third-party taxes, the Tax Collector may compute and determine any tax deficiency based upon an estimate of the tax liability, upon the return or returns, or upon any other information within the Tax Collector’s possession or that may come into the Tax Collector’s possession. One or more deficiency determinations of the amount due may be made for one or for more than one period. Any such determination shall be prima facie evidence of the person’s liability in any subsequent administrative or judicial proceeding.
(b) In making a determination, the Tax Collector may offset overpayments for a period or periods together with interest on the overpayments, against underpayments for another period or periods, against penalties, and against the interest on the underpayments. The interest on underpayments and overpayments shall be computed under Section 6.17-1.1 for underpayments and Section 6.15-2 for overpayments.
(c) This Section 6.11-1.1 shall apply as follows:
(1) to all returns and payments for tax periods ending and taxable events occurring on or after January 1, 2021, except as provided in subsections (c)(2) and (c)(3) of this Section 6.11-1.1;
(2) to all returns and payments for registration years ending on or after July 1, 2021 with respect to the registration fee imposed under Section 855 of Article 12; and
(3) to all returns and payments for fiscal years ending on or after July 1, 2021 with respect to fees, assessments, and other charges subject to this Article 6 that are imposed on a fiscal year basis.
(Added by Ord. 207-20, File No. 200759, App. 10/9/2020, Eff. 11/9/2020)
(a) Upon making a determination pursuant to Section 6.11-1 or Section 6.11-1.1, as applicable, or upon making a determination pursuant to Section 6.6-1 that a certificate shall not be issued or to revoke a registration, the Tax Collector shall give to the taxpayer or other person affected written notice of the Tax Collector’s determination. Except in the case of fraud, intent to evade the Business and Tax Regulations Code or rules and regulations issued by the Tax Collector, or failure to file a return, in all of which cases there is no statute of limitations, every notice of a deficiency determination shall be served within three years after the date that a return was due for a tax for the reporting period or three years after the return was actually filed for that reporting period, whichever is later. The taxpayer may agree in writing to extend said period for service of a notice of a deficiency determination. For purposes of serving a notice of a deficiency determination under this Section 6.11-2, the date that a return was due shall be:
(1) For tax years and tax periods ending on or before December 31, 2021, and registration years ending on or before June 30, 2023, the due date of the return without regard to any extensions under Section 6.9-4;
(2) For tax years and tax periods beginning on or after January 1, 2022, and registration years beginning on or after July 1, 2023 and ending on or before March 31, 2026, except for the taxes for the years and periods subject to subsection (a)(3) of this Section 6.11-2, the due date of the return including any extensions; or
(3) For the Gross Receipts Tax (Article 12-A-1) (including the tax on administrative office business activities in Section 953.8 of Article 12-A-1), the Early Care and Education Commercial Rents Tax (Article 21), the Homelessness Gross Receipts Tax (Article 28) (including the tax on administrative office business activities in Section 2804(d) or Section 2804.9 of Article 28), the Cannabis Business Tax (Article 30), and the Overpaid Executive Gross Receipts Tax (Article 33) (including the tax on administrative office business activities in Section 3303(g)) for tax years beginning on or after January 1, 2025, and for the Business Registration Fee (Article 12) for registration years beginning on or after April 1, 2026, November 30 of the calendar year in which the return for such respective tax was originally due.
(b) The notice of any determination under this Section 6.11-2 may be served upon the taxpayer or other affected person personally or by mail; if by mail, service shall be:
(1) to the last known address that appears in the Tax Collector’s records, provided there is such an address in the Tax Collector’s records, or
(2) to an address that the Tax Collector concludes, in the Tax Collector’s discretion, is the last known address of the person(s).
(c) In case of service by mail of any notice required by this Article 6 to be served upon the taxpayer or other person, the service is complete at the time of deposit with the United States Postal Service.
(Added by Ord. 18-98, App. 1/16/98; amended by Ord. 26-04, File No. 031990, App. 2/19/2004; Ord. 291-10, File No. 101099, App. 11/18/2010; Ord. 206-13
, File No. 130784, App. 10/11/2013, Eff. 11/10/2013; Ord. 207-20, File No. 200759, App. 10/9/2020, Eff. 11/9/2020; Ord. 152-21, File No. 210828, App. 9/29/2021, Eff. 10/30/2021; Proposition M, 11/5/2024, Eff. 12/20/2024)
(a) If any taxpayer or person responsible for paying a tax or remitting a third-party tax fails to make a timely return or remittance, the Tax Collector may make a determination based upon an estimate of the amount of the total tax liability of the taxpayer. The estimate shall be made for the period or periods in respect to which the person failed to timely make a return, or failed to timely remit a tax, and may be based upon any information which is in the Tax Collector's possession or may come into his or her possession. Upon the basis of this estimate, the Tax Collector shall compute and determine the amount required to be paid to the City, adding to the sum thus computed a penalty equal to 20 percent thereof. One or more determinations may be made for one or more than one period. Any such determination shall be prima facie evidence of the person's liability in any subsequent administrative or judicial proceeding.
(b) In making a determination, the Tax Collector may offset overpayments for a period or periods, together with interest on the overpayments, against underpayments for another period or periods, against penalties, and against the interest on the underpayments. The interest on underpayments and overpayments shall be computed in the manner set forth in Sections 6.17-1 and 6.15-2, respectively. The amount of the determinations, exclusive of penalties, shall bear interest at the rate of one percent per month, or fraction thereof, from the date of delinquency until the date of payment.
(c) The Tax Collector shall serve the person or persons determined to be liable for the tax as determined under this Section 6.11-3 with written notice of the determination and penalty. The Tax Collector shall serve the notice upon such person(s) personally or by mail. Service by mail shall be:
(1) to the last known address as indicated in the Tax Collector’s records, provided there is such an address in the Tax Collector’s records, or
(2) to an address that the Tax Collector concludes, in the Tax Collector’s discretion, is the last known address of the person(s).
(d) This Section 6.11-3 shall apply as follows:
(1) to all returns and payments for tax periods ending and taxable events occurring on or before December 31, 2020, except as provided in subsections (d)(2) and (d)(3) of this Section 6.11-3;
(2) to all returns and payments for registration years ending on or before June 30, 2021 with respect to the registration fee imposed under Section 855 of Article 12; and
(3) to all returns and payments for fiscal years ending on or before June 30, 2021 with respect to fees, assessments, and other charges subject to this Article 6 that are imposed on a fiscal year basis.
(Added by Ord. 18-98, App. 1/16/98; amended by Ord. 26-04, File No. 031990, App. 2/19/2004; Ord. 291-10, File No. 101099, App. 11/18/2010; Ord. 206-13
, File No. 130784, App. 10/11/2013, Eff. 11/10/2013; Ord. 207-20, File No. 200759, App. 10/9/2020, Eff. 11/9/2020; Ord. 152-21, File No. 210828, App. 9/29/2021, Eff. 10/30/2021)
If the Tax Collector believes that the collection of any tax or any amount of any third-party tax required to be collected and paid to the City or of any determination will be jeopardized, in whole or in part, by delay, the Tax Collector shall serve notice upon the taxpayer or other person determined to be liable therefor of the Tax Collector’s determination of jeopardy and of the tax or amount of third-party tax required to be paid to the City, and demanding immediate payment thereof, together with any interest and penalty determined to be due. The Tax Collector 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 taxpayer 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 Tax Collector also may consider whether the taxpayer is insolvent or likely to become insolvent after the taxes at issue are assessed or collected; whether the taxpayer 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 Tax Collector; what taxable years are at issue; how many taxable years are at issue; and whether the taxes at issue are third-party taxes.
(Added by Ord. 18-98, App. 1/16/98; amended by Ord. 177-01, File No. 010826, App. 8/17/2001; Ord. 26-04, File No. 031990, App. 2/19/2004; Ord. 152-21, File No. 210828, App. 9/29/2021, Eff. 10/30/2021)
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