4.16.360 Estimated tax.
A. In the event the finance director is unable to ascertain the tax due from a seller by reason of the failure of the seller to keep accurate books, allow inspection, or file a return, or by reason of the seller filing a false or inaccurate return, the finance director may make an estimate of the tax due based on any evidence in their possession.
B. Sales taxes may also be estimated, based on any information available, whenever the finance director has reasonable cause to believe that any information on a sales tax return is not accurate.
C. A seller’s tax liability under this chapter may be determined and assessed for a period of three (3) years after the date the return was filed or due to be filed with the city. No civil action for the collection of such tax may be commenced after the expiration of the three- (3-) year period except an action for taxes, penalties and interest due from those filing periods that are the subject of a written demand or assessment made within the three- (3-) year period, unless the seller waives the protection of this section.
D. The city shall notify the seller, in writing, that the city has estimated the amount of sales tax that is due from the seller, stating the estimated amount. The city shall serve the notice on the seller by delivering the notice to the seller’s place of business, or by mailing the notice by certified mail, return receipt requested, to the seller’s last known mailing address. A seller who refuses the certified mail will be considered to have accepted the certified mail for purposes of service.
E. The city’s estimate of the amount of sales tax that is due from a seller shall become a final determination of the amount that is due unless the seller, within fifteen (15) calendar days after service of notice of the estimated tax:
1. Files a complete and accurate sales tax return for the delinquent periods supported by satisfactory records and accompanied by a full remittance of all taxes, interest, penalties, costs and other charges due; or
2. Files a written notice with the finance director appealing the estimated tax amount in accordance with the appeal procedures set out in BMC 4.16.440.
3. Arguments or reasons for failure to timely file a return and remit taxes collected shall not be considered a valid basis or grounds for granting an appeal. The basis and grounds for granting an appeal of an assessment are:
a. The identity of the seller is in error;
b. The amount of the debt is erroneous due to a clerical error (and the nature and extent of the error is specified in the request for appeal); or
c. The seller disputes the denial of exemption(s) for certain sales.
F. The amount of sales tax finally determined to be due under this section shall bear interest and penalty as provided in BMC 4.16.270, from the date that the sales tax originally was due, plus an additional civil penalty of fifty dollars ($50) for each calendar month or partial month for which the amount of sales tax that is due has been determined. [Ord. 17-39 § 2.]