3-2-32: RECOVERY OF TAXES, PENALTY AND INTEREST:
A. 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 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.
1. If any 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, 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 fifteen dollars ($15.00) for such failure or ten percent (10%) thereof, whichever is greater, and interest on such delinquent taxes at the rate imposed under section 3-2-38 of this chapter, plus one-half percent (½%) per month from the date when due, not exceeding eighteen percent (18%) in the aggregate.
2. Promptly thereafter, the finance director shall give to the delinquent taxpayer written notice of such estimated taxes, penalty, and interest, which notice 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 thirty (30) calendar days after the notice of deficiency is mailed, the taxpayer may petition the finance director for a hearing in the manner provided in section 3-2-41 of this chapter and either may appeal to the district court as provided in section 3-2-42 of this chapter or to the Department of Revenue as provided in section 3-2-43 of this chapter.
C.
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 (5) days after the same are due, then the finance director may issue a notice, setting forth the name of the taxpayer, the amount of the tax, penalties and interest, the date of the accrual thereof, and that the town claims a first and prior lien therefor on the real and personal property of the taxpayer, including, without limitation, the goods, inventory (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 finance director or any duly qualified agent of 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 to the sheriff of the county, commanding him to levy upon, seize, and sell sufficient of the real and personal property of the tax debtor found within his county to satisfy the amount due together with interest, penalties, and collection costs, as may be provided by law. Any such sales shall be made free and clear of all liens and encumbrances.
D. 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 his retail business, and said property so levied upon shall be sold in all respects with like effect and in the same manner as 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. 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. The finance director may also treat any such taxes, penalties, and interest due and unpaid as a debt due to the town from the vendor. The return of the taxpayer of the assessment made by the finance director, as provided in this chapter, shall be prima facie proof of the amount due. Such debt may be collected by civil action brought against the vendor in a court of competent jurisdiction, and in such action the town shall be entitled to recover from the vendor, in addition to the tax, penalties and interest, its reasonable attorney fees incurred in the prosecution of such action.
G. 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, the service of summons upon the finance director or any person in charge of the office of the finance director shall be sufficient service and shall be binding upon the town.
H. The finance director is authorized to waive, for good cause shown, any penalty assessed as provided in this chapter, and any interest imposed in excess of the rate determined pursuant to subsection B of this section shall be deemed a penalty. (Ord. 30, Series 2021)