HomeMy WebLinkAboutCC ORD 2003-2234 Adds Ch. 4.06, administration and collection; § 4.24.180, sales and use tax; amends § 4.32.080, delinquency; § 6.04.150, audit (4.06, 4.24, 4.32, 6.04)ORDINANCE NO. 2003 — 2234
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY
AMENDING THE NATIONAL CITY MUNICIPAL CODE
BY ADDING CHAPTER 4.06 PERTAINING TO
ADMINISTRATION AND COLLECTION, AND AMENDING TITLE 4,
CHAPTER 4.24 PERTAINING TO SALES TAX, CHAPTER 4.32
PERTAINING TO TRANSIENT OCCUPANCY TAX, AND AMENDING
TITLE 6, CHAPTER 6.04 PERTAINING TO BUSINESS TAXES
BE IT ORDAINED by the City Council of the City of National City that the
National City Municipal Code is amended as follows:
Section 1. That Title 4 is amended by adding chapter 4.06 to read as follows:
CHAPTER 4.06
ADMINISTRATION AND COLLECTION
Sections:
4.06.020 Cost recovery for penalties and interest on certain indebtedness owed to
the city.
4.06.030 Cost recovery for audit services
4.06.040 Collection
4.06.020 Cost recovery for penalties and interest on certain indebtedness owed to
the city. A. Except as provided otherwise by ordinance, franchise or an agreement approved
by the city council, penalties or interest, or both, shall be charged against unpaid taxes, debts
and other revenues owed to the city as follows:
1. Interest. Interest shall be charged at the rate of one and one-half percent
(1.5%) per month or fraction thereof on the unpaid balance, exclusive of penalties, of all taxes or
debts owed to the city after the date the remittance first became delinquent until paid.
2. Penalty. Penalty shall be assessed on the unpaid balance after the due
date against unpaid taxes, revenues and other fees established by ordinance at the rate of ten
percent (10%), or at the rate of twenty-five percent (25%) for the intentional or fraudulent failure to
pay the amount due. The penalty shall be assessed on a one-time basis.
B. The finance director may authorize the execution of an agreement to pay the
delinquencies in subsection A and any interest and penalty due in monthly installments over a
period not to exceed one year. Execution of the agreement shall not exonerate previously accrued
interest and penalty against the account, but no further interest shall accrue on amounts included in
the agreement while the debtor is not in breach of the agreement. If, however, a default in
payment occurs, then the deferred interest on the unpaid balance shall reattach back to the date of
execution of the agreement and shall become due and payable.
C. The city manager or the finance director, upon the concurrence of the city attorney,
may waive penalties or interest, or both, in whole or in part, when it is determined that such waiver
is in the best public interest.
4.06.030 Cost recovery for audit services. The costs and related charges incurred by
the city in auditing tax and revenue accounts are subject to cost recovery when an underreporting
of tax or revenue is determined by audit. Recoverable costs shall include the costs paid to an
auditor or audit recovery service, or the salary and overhead of city staff auditors performing the
audit. Interest and penalties shall be due on the underreported revenue or tax deficiency from the
date the amount was due until it is paid in accordance with section 4.06.020. When appropriate,
collection costs shall also be subject to cost recovery pursuant to section 4.06 040.
4.06.040 Collection. A. Whenever charges are not paid within a reasonable time
following demand, the Director of Finance and the city attorney, as applicable, are authorized to
prosecute the claim to judgment in an appropriate court with jurisdiction and to take any other
action appropriate for collection without further direction from the city council after demand has
been refused. The Council shall be notified when litigation is initiated.
B. The city attorney is authorized to collect any amounts due by civil or administrative
action, or both, together with all costs incurred in the collection of that indebtedness after demand
for payment has been refused. Costs for legal services shall be based on actual billings for legal
services or, when performed by the city attorney, the charges for comparable and customary
hourly attorney fees charged in San Diego County.
Section 2. That Title 4, Chapter 4.24 is amended by adding Section 4.24.180 to read as
follows:
4.24.180 Furnishing of Board of Equalization Schedule C (BOE 530) and Schedule
F (BOE 531-F) by designated taxpayers. A. In order to ensure proper allocation of sales tax
revenue and avoidance of penalties and interest to affected businesses, the city council finds it
is important to the viability of both the city and the business economy that sales tax revenues be
tracked more efficiently. It is the intent of this section to develop a mechanism to allow timely
comparison of sales tax activity with receipts from the State Board of Equalization. Accordingly,
designated businesses within the city are required to furnish the city with current copies of
Board of Equalization (BOE) Schedule C (BOE 530 DETAILED ALLOCATION BY SUBOUTLET
OF UNIFORM LOCAL SALES AND USE TAX) and Schedule F (BOE 531-F DETAILED
ALLOCATION BY CITY OF 1% UNIFORM LOCAL SALES AND USE TAX) when filing their
quarterly sales and use tax returns with the BOE. The copy shall be provided to the finance
director no later than fifteen (15) days after the date the return is due at BOE.
B. The finance director is responsible for determining those businesses that rank
within the top 100 sales tax producers and notify those businesses of the requirement under this
section to provide copies of the schedules to the city finance department. No business shall be
informed of or be provided the identity of any other business on the list of designated
businesses.
C. BOE Schedules C and F shall be used by the finance director solely for the
purpose of ensuring that the city receives appropriate sales tax credit from the BOE, and for no
other purpose. Such verification may include discussion with the concerned business providing
the copy regarding sales tax allocation by that business. The copies of Schedules C and F are
not public records and shall not be released to any person or entity outside the city finance
office. The copies of schedules furnished to the finance director shall be treated as confidential
documents pursuant to Revenue and Taxation Code section 7056, and shall be destroyed upon
verification by the city that proper sales tax allocation has occurred and city revenues have been
credited accordingly. Any list of designated businesses shall also be treated as a confidential
document and shall not be publicly released. Data from individual copies of Schedules C or F
may be combined into a statistical or financial abstract, provided there is no identification of any
individual business.
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D. Violation of this section by any city official, officer or employee is subject to
penalty as prescribed by law.
Section 3. That Title 4, Chapter 4.32 is amended by amending Section 4.32.080 to read
as follows:
4.32.080 Delinquency —Penalties —Interest.
A through C — No change.
D. Interest. In addition to the penalties imposed, any operator who fails to remit any
tax imposed by this chapter shall pay interest at the rate of one and one-half percent (1.5%) per
month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on
which the remittance first became delinquent until paid.
E through F — No change.
Section 4. That Title 6, Chapter 6.04 is amended by amending Section 6.04.150 to
read as follows:
6.04.150 Audit. The collector has the authority to examine by audit and any other
accepted accounting process the records and practices of any place of business in the city to
ascertain whether the provisions of this chapter have been complied with. A business that
misstates its gross receipts or basis for tax liability may be liable for the city's actual costs of
audit when the understatement is greater than five -percent (5%) of the actual gross receipts or
basis for tax liability, irrespective of whether the understatement results in any change in the tax
due. Penalties and interest under Section 6.04.370C shall be collected on the balance of any
tax due.
PASSED AND ADOPTED this
ATTEST:
teA
Dalla ��t
Mich
M y Clerk
APPROVED AS TO FORM:
7
George H. Eiser, III
City Attorney
16TH da
CEMBER .2003.
Nick Inzu?r za' Mayor
3
Passed and adopted by the Council of the City of National City, California, on December 16,
2003, by the following vote, to -wit:
Ayes: Councilmembers Inzunza, Morrison, Natividad, Parra, Ungab.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY:
By:
NICK INZUNZA
Mayor of the City of National City, California
lerk of the ity National City, California
Deputy
I HEREBY CERTIFY that the foregoing ordinance was not finally adopted until seven calendar
days had elapsed between the day of its introduction and the day of its final passage, to wit, on
December 2, 2003, and on December 16, 2003.
I FURTHER CERTIFY THAT said ordinance was read in full prior to its final passage or that
the reading of said ordinance in full was dispensed with by a vote of not less than a majority of
the members elected to the Council and that there was available for the consideration of each
member of the Council and the public prior to the day of its passage a written or printed copy of
said ordinance.
I FURTHER CERTIFY that the above and foregoing is a full, true and correct copy of
ORDINANCE NO. 2003-2234 of the City Council of the City of National City, passed and
adopted by the Council of said City on December 16, 2003.
City Clerk of the City of National City, California
By:
Deputy