§ 3-254. Deficiency determination.

(a)

Recomputation of tax; authority to make; basis of recomputation. If the city clerk is not satisfied with the return of the tax or the amount of the tax to be paid to the city by any person, the city clerk may cause an audit of the books and records of the licensee to be performed and may compute and determine the amount required to be paid upon the basis of any information within the city clerk's possession or that may come into the city clerk's possession. One (1) or more deficiency determinations may be made of the amount due for one (1) or more monthly periods. It shall be the duty of each licensee subject to the collection or payment of any of the excise taxes set forth in this article to keep and preserve his records relative to the collection and payment of such taxes for three (3) years.

(b)

Interest. The amount of the deficiency determination, exclusive of penalties, shall bear interest at the rate of one (1) percent per month, or fraction thereof, from the tenth day after the close of the monthly period in which the amount or any portion thereof should have been returned until the date of payment thereof.

(c)

Offsetting of overpayments. In making a deficiency determination, the city clerk may offset overpayments for a period against underpayments for another period, penalties and the interest on underpayments.

(d)

Penalty for negligence or disregard of rules and regulations. If any part of the deficiency for which a deficiency determination has been made is due to negligence or disregard of rules and regulations, a penalty of fifteen (15) percent of the amount of such deficiency shall be added to the tax.

(e)

Penalty for fraud or intent to evade. If any part of the deficiency for which a deficiency determination is made is due to fraud or an intent to evade any provision of sections 3-251—3-256, or other authorized rules and regulations, a penalty of twenty-five (25) percent of the deficiency shall be added to such tax.

(f)

Notice of city clerk's determination; service of. The city clerk or his designated representative shall give to the licensee written notice of a deficiency determination. The notice may be served personally or by mail. If such service is made by mail, such service shall be made pursuant to section 3-163

(g)

Time within which notice is to be mailed. Except in the case of fraud, intent to evade the provisions of this article or authorized rules and regulations, or failure to make a return, every notice of a deficiency determination shall be mailed within three (3) years after the tenth day of every month following the monthly period for which the amount is proposed to be determined, or within three years after the return is filed, whichever period should last expire.

(Ord. No. 147, 11-11-02)