§ 3.20.380. Protest of tax and appeal by buyer.

A.

The seller shall determine whether a sale is taxable under this chapter. If the seller fails to collect the tax due on a sales transaction because of an incorrect determination of taxability by the seller, except when the seller has been misled by the buyer, or fails for any other reason to collect the tax due on the sale, the seller becomes liable to the city for the tax in the same manner as if the tax had been collected.

B.

If a buyer believes that a transaction is exempt or otherwise not subject to the tax imposed under this chapter, the buyer shall pay the tax to the seller under protest. A tax is paid under protest by stating to the seller that the tax is paid under protest and requesting the seller mark any receipts, invoices or other evidence of the sale to indicate that the tax is paid under protest. The buyer shall file with the finance director, a statement of protest on a form provided to the buyer by the finance director. Failure to file a complete statement of protest with the finance director within ten days of the date of the sale or to pay the tax at the time of the sale constitutes a waiver of the protest and of any other right of the buyer to challenge the tax in any other forum. The buyer shall clearly set out on the form the terms and conditions of the sale, the amount of the sale, the goods, rental or services involved, the location of the sale and all other information necessary to support the buyer's claim that the tax does not apply.

C.

The buyer shall file the completed form, including the copy of the receipt or invoice, with the finance director, within ten days of the date of the sale. The seller shall include a copy of the receipt protested with the seller's sales tax return for the tax reporting period in which the protested tax was paid. The protested tax shall be paid over to the city with all other sales tax amounts due for the reported period.

D.

The finance director shall issue a written ruling on the buyer's protest within thirty days of the timely filing by the buyer. The burden of proof is on the buyer. The finance director may make inquiry of any person who may have information regarding the facts relevant to the taxability of the protested tax and may seek the advice of the city attorney on any protest. The ruling will be in writing and must set forth the reason for the grant or denial of the protest. The ruling will be mailed to the buyer and the seller at the addresses given in the protest.

E.

If a protest is granted, the finance director shall determine whether the tax protested has been received by the city from the seller. If the tax has been received, the finance director shall refund directly to the buyer the amount of the tax to be refunded. If the tax has not been received by the city, the finance director shall pay the refund to the buyer upon receipt of the sales tax from the seller.

F.

In the event the protest is denied, the buyer may, within twenty days of the date of mailing of the notice of denial, file an appeal to the city manager. An appeal to the city manager shall be filed with the finance director, who shall immediately forward the appeal to the city manager.

(Ord. 04-10 § 2 (part), 2004).