§ 146-89. Collection.

(a)

Security. The chief financial officer, whenever deemed necessary to ensure compliance with this article, may require any person subject to this article to deposit with the chief financial officer such security as the chief financial officer may determine. The amount of the security shall be fixed by the chief financial officer but shall not be greater than twice the person's estimated average liability for the period for which the person files returns, determined in such a manner as the chief financial officer deems proper or $10,000.00 whichever amount is the lesser. The amount of the security may be increased by the chief financial officer subject to the limitations provided in this subsection. The chief financial officer may sell the security at public auction, with the approval of the mayor and council, if it becomes necessary to do so in order to recover any tax or any amount required to be collected, interest or penalty due. Notice of the sale may be served upon the person who deposited the security personally or by mail; if by mail, service shall be made in the manner prescribed for service of a notice of a deficiency determination in section 146-86(f) and shall be addressed to the person at the person's address as it appears in the records of the chief financial officer. Upon any sale, any surplus above the amounts due shall be returned to the person who deposited the security.

(b)

Action for collection. At any time within three years after any tax or any amount of tax required to be collected becomes due and payable and at any time within three years after the delinquency of any tax or any amount of tax required to be collected, the chief financial officer may bring an action in the courts of this state, of any other state or of the United States in the name of the city to collect the amount delinquent, together with penalties and interest, court fees, filing fees, attorney's fees and other legal fees incident thereto.

(c)

Duty of successor of operator to withhold. If the purchaser of a business fails to withhold purchase price as required, the purchaser becomes personally liable for the payment of the amount required to be withheld by the purchaser to the extent of the purchase price, valued in money. Within 30 days after receiving a written request from the purchaser for a certificate, the chief financial officer shall either issue the certificate or mail notice to the purchaser at the purchaser's address as it appears on the records of the chief financial officer of the amount that must be paid as a condition of issuing the certificate. The time within which the obligation of a successor may be enforced shall start to run at the time the operator sells out the business or at the time that the determination against the operator becomes final, whichever event occurs later.

(d)

Credit for tax, penalty or interest paid more than once or erroneously collected. Whenever the amount of any tax, penalty or interest has been paid more than once or has been erroneously or unlawfully collected or received by the city under this article, it may be offset as provided in section 146-86(c). If the operator or person determines that the operator or person has overpaid or paid more than once, which fact has not been determined by the chief financial officer, the operator or person will have three years from the date of payment to file claim in writing stating the specific ground upon which claim is founded. The claim shall be audited. If the claim is approved by the chief financial officer, the excess amount paid the city may be credited on any amounts then due and payable from the person by whom it was paid or the operator's or person's administrators or executors.

(Code 1977, § 14-6188)