(A) Retailer collects, holds tax monies. All sums of money paid by the purchaser to the retailer as taxes imposed by this chapter shall be and remain public money, the property of the town, in the hands of such retailer, and he or she shall hold the same in trust for the sole use and benefit of the town until paid to the Finance Director, and for failure to so pay to the Finance Director, such retailer shall be punished as provided herein.
(B) Failure to make return; penalty.
(1) If a person neglects or refuses to make a return in payment of the sales tax or to pay any sales tax as required by this chapter within five business days after the same are due, then the Finance Director shall make an estimate, based upon such information as may be available, of the amount of taxes due for the period for which the taxpayer is delinquent and shall add thereto a penalty equal to the sum of $15 for such failure or 10% thereof, whichever is greater, and interest on such delinquent taxes at the rate of 1% per month from the time the return was due. If any part of the deficiency is due to fraud with the intent to evade the tax, then there shall be added 100% of the total amount deficiency and in such case, the whole amount of the tax unpaid, including the additions, shall become due and payable ten days after written notice and demand by the Finance Director, and an additional 3% per month on said amount shall be added from the date that the return was due until paid.
(2) Promptly thereafter, the Finance Director shall give to the delinquent taxpayer written notice of such estimated taxes, penalty and interest, which notice of assessment shall be sent by first class mail directed to the last address of such person on file with the Finance Department. Such estimate shall thereupon become a notice of deficiency. Within 30 days after the notice of deficiency is mailed, the taxpayer may petition the Finance Director for a hearing in the manner provided in § 4-3-6-1 of this chapter and either may appeal to the District Court as provided in § 4-3-6-2 of this chapter or to the Department of Revenue as provided in § 4-3-6-3 of this chapter.
(C) Delinquent tax a lien.
(1) If any taxes, penalty or interest imposed by this chapter and shown due by returns filed by the taxpayer or as shown by assessments duly made as provided in this section are not paid within five days after the same are due, then the Finance Director shall issue a notice, setting forth the name of the taxpayer, the amount of the tax, penalties and interest, and the date of the accrual thereof, and the town claims a first and prior lien therefor on the real and tangible personal property of the taxpayer except as to preexisting claims or liens of a bona fide mortgagee, pledgee, judgment creditor or purchaser whose rights have attached prior to the filing of the notice as provided in this section on property of the taxpayer, other than the goods, stock in trade, and business fixtures of such taxpayer.
(2) Said notice shall be on forms furnished by the Finance Department and shall be verified by the Town Manager or by the Finance Director or any duly qualified agent of the Town Manager or the Finance Director, whose duties are the collection of such tax, and may be filed in the office of the County Clerk and Recorder in which the taxpayer owns real or tangible personal property, and the filing of such notice shall create a lien on such property in that county and constitute notice thereof. After said notice has been filed, or concurrently therewith, or at any time when taxes due are unpaid, whether such notice shall have been filed or not, the Finance Director may issue a warrant directed to any duly authorized revenue collector, or the sheriff of the county commanding him or her to levy upon, seize, and sell sufficient of the real and personal property of the amount due together with interests, penalties and costs, as may be provided by law, subject to valid preexisting claims or liens.
(D) Recovery of costs by county. Such revenue collector or the sheriff shall forthwith levy upon sufficient of the property of the taxpayer or any property used by such taxpayer in conducting such taxpayer’s retail business, and said property so levied upon shall be sold in all aspects to with like effect and in the same manner as is prescribed by law with respect to executions against property upon judgment of a court of record, and the remedies of garnishment shall apply. The sheriff shall be entitled to such fee in executing such warrants as are allowed by law for similar services.
(E) Lien released by county. Any lien for taxes as shown on the records of the County Clerks and Recorders as provided in this section, upon payment of all taxes, penalties and interest covered thereby shall be released by the Finance Director in the same manner as mortgages and judgments are released.
(F) Costs recovered by town.
(1) The Finance Director may also treat any such taxes, penalties or interest due and unpaid as debt due to the town from the vendor. The return of the taxpayer or the assessment made by the Finance Director, as provided in this chapter, shall be prima facie proof of the amount due.
(2) To recover such taxes, penalties or interest due, the Finance Director may bring an action in attachment, and a writ of attachment may be issued to the sheriff. In any such proceedings, no bond shall be required of the Finance Director, nor shall any sheriff require of the Finance Director an indemnifying bond for executing the writ of attachment or writ of execution upon any judgment entered in such proceedings. The Finance Director may prosecute appeals in such cases without the necessity of providing bond thereof. It is the duty of the Town Attorney, when requested by the Finance Director, to commence action for the recovery of taxes due under this chapter, and this remedy shall be in addition to all other existing remedies or remedies provided in this chapter.
(G) Town is defendant. In any action affecting the title to real estate or the ownership or rights to possession of personal property, the town may be made a party defendant for the purpose of obtaining an adjudication or determination of its lien upon the property involved therein. In any such action, service of summons upon the Finance Director or any person of the office of the Finance Director shall be sufficient service and shall be binding upon the town.
(H) Waiver. The Finance Director is authorized to waive, for good cause shown, any penalty and interest assessed as provided in this chapter.
(I) Payment by insufficient funds check. If a taxpayer pays for any tax imposed pursuant to this chapter by check for which there are insufficient funds to cover such check, then the Finance Director may assess a penalty against such taxpayer as follows:
(1) Fifteen dollars for the first violation;
(2) Thirty dollars for the second violation; and
(3) Seventy five dollars for each additional violation. If a penalty of $35 or more has been assessed against a taxpayer by the Finance Director, then the Finance Director may require such taxpayer to pay all tax payments, whether due or to be due in the future by certified funds, cashier’s check or cash. The penalty imposed by this subsection is in addition to all other penalties imposed pursuant to this chapter.
(J) Enforce collection. If any person, firm or corporation liable for the payment of any tax covered by this chapter has repeatedly failed, neglected or refused to pay the same within the time specified for such payment, and the town has been required to issue distraint warrants to enforce the collection of any taxes due from such taxpayer, the Finance Director is hereby authorized to assess and collect the amount of such taxes due, together with all interest and penalties provided therefor by law, and also, the following additional penalties for recurring distraint warrants:
(1) Three, four or five consecutive distraint warrants issued: 15% of the delinquent taxes, interest and penalties due or the sum of $25, whichever is greater; and
(2) Six or more consecutive distraint warrants: 30% of the delinquent taxes, interest, and penalties due or the sum of $50, whichever is greater.
(Ord. 45(1991) § 1; Ord. 13(2010) § 3)