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Sec. 3.20.425 Assessment of taxes. <br />A. If any taxpayer fails, neglects or refuses to collect the tax, or to make <br />a return, or to pay in full the tax required by this chapter, then the finance director, <br />based on such information as is available, shall make an estimate of the tax due. <br />In addition to the estimated tax, there shall be added penalties and interest a <br />provided in this chapter. <br />A. For the purpose of ascertaining the correct total tax liability from any <br />person engaged in business in the city, the finance director may conduct an audit <br />by examining all books, accounts and records of such person. <br />B. Any tax deficiency or overpayment ascertained through audit shall be <br />computed by one or more of the following methods as the finance director deems <br />appropriate: <br />1. By identifying transactions on which the tax was not properly or <br />accurately collected or paid; <br />2. By identifying irregularities in the calculation of tax due; or <br />3. By estimating taxes due based on the results of testing taxpayer's <br />records on a sample or other reasonable basis. <br />C. If the finance director determines that any taxpayer has neglected <br />or refused to provide adequate books, accounts and records requested for audit, or <br />that any taxpayer has failed, neglected or refused to collect the tax, to make a <br />return, or to pay in full the tax required by this chapter, the finance director shall <br />estimate the total tax liability. Such estimate shall be based upon such <br />information as may be available, with or without employing the investigative <br />powers vested in the finance director by this chapter, and a notice of <br />determination, assessment and demand for payment shall be issued. In addition to <br />the estimated tax, there shall be added penalties and interest as provided in this <br />chapter. <br />D. An estimated notice of determination, assessment and demand for <br />payment issued pursuant to this section shall be prima facie correct, and the <br />burden of proof that the items, services, privileges, occupations, or other <br />transactions, for which modifications or cancellations of such assessment are <br />sought, are exempt from or not subject to taxation shall be on the taxpayer and <br />such proof shall be by a preponderance of evidence. <br />E. If the city ascertains through an audit of the taxpayer's records that <br />the tax due has not been fully reported or paid by the applicable due date, a notice <br />of determination, assessment and demand for payment shall be issued. <br />4 <br />14 <br />