§ 3.20.340. Estimated tax.

A.

In the event that the city is unable to ascertain the tax due to be remitted by a seller by reason of seller's failure to keep accurate books, to allow inspection, or to file a return or seller's falsification of records, the city may make an estimate of the tax due based on any information available to it. Notice of the estimate of tax due shall be furnished the seller, and the amount therein stated shall become final twenty days thereafter for the purposes of determining liability of seller to the city, unless the seller earlier files an accurate return, supported by satisfactory records, indicating a lesser liability, or unless the city proves a greater liability within six years from the date the final estimate is established.

B.

On or after the fifth day of delinquency in the filing of the required sales tax return or the failure to pay all taxes, interest and penalties due, or upon a determination of a delinquency based upon an audit, the finance director shall assess against the delinquent seller a sales tax for the delinquent period or periods based on a reasonable estimate of the gross taxable sales computed from an audit or the tax returns submitted by the delinquent seller. If the finance director determines that information from prior tax returns is not adequate for computing a reasonable estimate of the gross taxable sales, other sources of information, including, but not limited to, information derived from similar businesses, may be used. Notice of the estimated assessment shall be provided to the seller by certified mail. Such assessment shall be due and owing retroactively from the first day of delinquency and shall be subject to the interest, penalties and other costs and charges as provided in this chapter.

C.

The estimated assessment of sales tax and other amounts due and owing, as provided in subsection B. of this section, shall be deemed to be admitted to be the amount due and owing to the city unless the finance director receives, within twenty days of the date of the certified mailing of notice of the estimated assessment, an accurate and complete sales tax return for the delinquent periods together with full payment of all taxes, interest, penalties, costs and other charges due, or the seller pays the amount due under protest.

D.

A seller shall immediately notify the city of any fire, theft or other casualty which would prevent his compliance with this chapter. Such casualty constitutes a defense to any penalty provided in this chapter, but does not excuse the seller from liability for taxes due. Accidental or careless loss of funds or records is not a defense under this section.

E.

Nothing in this section shall prevent the city from filing and maintaining an action to collect any taxes collected or which should have been collected in addition to any penalty assessed. In such action, the estimated tax due established by the city shall be final, prima facie evidence of the amount payable.

(Ord. 04-10 § 2 (part), 2004).