(A) The City may agree to enter into a repayment plan with a delinquent distributor. No repayment plan shall be valid unless agreed to by both parties in writing.
(B) A distributor shall not be eligible to enter into a repayment plan with the City if the distributor has defaulted on a repayment plan in the previous two calendar years.
(C) The repayment plan shall include a secured promissory note that substantially complies with the following terms:
(1) The distributor agrees to pay a minimum of 10% down payment on the tax, interest and penalty amount due. The down payment shall be applied first to penalty, then to accumulated interest, and then to the tax owed.
(2) The distributor agrees to pay the balance of the tax, penalty and interest owed in monthly installments over a period not to exceed two years.
(3) Interest at a rate of 15% per annum shall accrue on the principal sum due. Interest shall not apply to penalties owed or to interest accrued at the time the repayment plan is executed or accruing during the term of the repayment plan.
(4) If the distributor is a corporation or a limited liability entity, the distributor agrees to provide a personal guarantee of the obligations under the repayment plan.
(5) The distributor agrees to pay all future tax bills in accordance with the provisions of this Chapter.
(6) The distributor agrees to provide a security interest in the form of a tobacco products tax lien for the entire unpaid balance of the promissory note to be recorded by the City at the time the repayment plan is signed. The distributor shall be responsible for the cost of recording the tax lien.
(D) If a distributor fails to pay two or more payments as required by the repayment plan agreement, the distributor shall be in default and the entire amount owed at the time of default shall become immediately due. The City will send the distributor a notice of default. The City may immediately foreclose on the tobacco products tax lien or take any other remedy available under the law.
(Ord. 2021-02, passed 3-30-21)