(a) Any person, firm or corporation contracting with any person, firm or corporation engaged in a business or service licensed and/or taxed under this article, or taxed under Article 745, shall withhold payment, in sufficient amount, to cover the two percent (2%) Town business and occupation taxes due or any other business and occupation taxes due, under the contract, and withhold an additional amount to cover unpaid license fees, as part of the final settlement of any contract until the receipt of a certificate from the Town Recorder certifying that Town business and occupation taxes and license fees levied and accrued under the Town's Business and Taxation Code against the general contractor or subcontractor have teen paid in full. If the Town, through the Town Recorder, is unable to collect the taxes and license fees due from any contractor, the person contracting for the work shall be required to forfeit to the Town the unpaid amount of Town taxes and license fees due, from money being withheld from the final payment, upon demand and order of the Town Recorder.
(b) If any person, firm or corporation contracting with any person fails to withhold a sufficient amount as provided herein, he shall be personally liable for the payment of all unpaid Town taxes. The same shall be recoverable by the Town Recorder by appropriate legal proceedings.
(c) The Town Recorder may also require every person engaging or continuing within the Town in the business of contracting, who is a nonresident of the State, to pay in advance, or guarantee the payment of the amount of business and occupation tax within the Town. Such payment of such tax is to be based upon the amount of the building permit issued by the Town for the work to be performed by such person, or based on the estimated contract amount between any person and the contractor, a copy of which may be requested by the Town Recorder. In lieu of such advance payment of Town business and occupation tax by delivering to the Town Recorder a bond, with good and adequate surety, payable to the Town, and conditioned to pay such tax on or before the estimated date of completion of the work to be performed by such person within the Town.
(d) A general contractor shall insure that all subcontractors that may be employed by the general contractor are properly licensed, prior to beginning work as a subcontractor.
(e) The Town Recorder shall give notice to any contractor, subcontractor or person applying for a permit of the requirement of this section and the personal liability of all parties for payment of Town taxes and license fees.
(f) Each general contractor for any project, with a contract amount or building permit amount in excess of twenty-five thousand dollars ($25,000) shall be required to furnish the Town Treasurer, in writing, on forms he may prescribe, a list of each and every subcontractor to be employed during the term of the project, and the contract amount of each subcontractor, updated periodically as requested by the Town Recorder and submitted along with other information, as he may require. The general contractor shall also provide evidence of his contract amount and shall also periodically provide any changes to its original contract amount upon request by the Town Recorder, and in all cases, prior to making final payment of taxes to the Town in settlement of any contract.
(g) The general contractor shall be required to show and report separately on the Town business and occupation tax return, any income derived from a project where the amount of the contract exceeds twenty-five thousand dollars ($25,000). (Passed 2-8-94)