A. The tax imposed by this chapter, together with the interest and penalties herein provided and the costs of collection which may be incurred, shall be and, until paid, remain a first and prior lien superior to all other liens upon the goods, merchandise, furniture and fixtures, tools and equipment of any taxpayer, or used by any taxpayer in conducting his business under lease, title retaining contract or other contract arrangement, within the town and shall take precedence on all such property over other liens or claims of whatsoever kind or nature and may be foreclosed by seizing under distraint warrant and selling so much of said goods, merchandise, furniture and fixtures, tools and equipment as may be necessary to discharge said lien.

B. The real or personal property of an owner who has made a bona fide lease to a taxpayer shall be exempt from the lien created in this section (1) if such property can reasonably be identified from the lease description and (2) if the lessee is given no right to become the owner of the property leased. This exemption shall be effective from the date of the execution of the lease until its termination if the lease is filed or recorded, within ten (10) days after the execution of the lease, with either the executive director of the state Department of Revenue or the clerk and recorder of the town. Where the lessor and lessee are blood relatives, relatives by law, or have twenty-five percent (25%) or more common ownership, a lease between them shall not be considered bona fide for the purpose of this section.

C. Any taxpayer who is in possession of property under the terms of a lease, which property is exempt from lien as provided in this section, may be required by the manager to make return of and pay over taxes collected at more frequent intervals than monthly, or may be required to furnish security for the proper payment of taxes whenever the collection of taxes appears to be in jeopardy. (Ord. 30, Series 2021)