§ 3-256. Collection.

(a)

Security. Whenever the city clerk deems it necessary to ensure compliance with sections 3-251—3-256, he may require any person subject to such sections to deposit with him such security as the city clerk may determine. The amount of the security shall be fixed by the city clerk, but shall not be greater than twice the person's estimated average liability for the period for which he files returns, determined in such a manner as the city clerk deems proper, or ten thousand dollars ($10,000.00), whichever amount is the lesser. The amount of the security may be increased by the city clerk subject to the limitations provided in this section. The city clerk may sell the security at public auction, with the approval of the city 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 service is by mail, it shall be made in the manner prescribed for service of a notice of determined deficiency and shall be addressed to the person at his address as it appears in the records of the city clerk. Upon any sale, any surplus above the amounts due shall be returned to the person who deposited the security.

(b)

Notice of delinquency to persons holding credits or property of delinquent; duty of persons so notified. If any person is delinquent in the payment of the amount required to be paid by him, or if a delinquency determination has been made against him which remains unpaid, the city clerk may, not later than three (3) years after the payment became delinquent, give notice thereof by registered mail to all persons in the city having in their possession or under their control any credits or other personal property belonging to the delinquent, or owing any debts to the delinquent. After receiving the notice, the persons so notified shall neither transfer nor make any other disposition of the credits, other personal property or debts in their possession or under their control at the time they receive the notice until the city clerk consents to a transfer or disposition, or until twenty (20) days elapse after the receipt of the notice. All persons so notified shall, within five (5) days after receipt of the notice, advise the city clerk of all of the credits, other personal property or debts in their possession, under their control or owing by them.

(c)

Action for tax collection. At any time within three (3) years after any tax or any amount of tax required to be collected under this article becomes due and payable, and at any time within three (3) years after the delinquency of any tax or any amount of tax required to be collected under this article, the city clerk may bring an action in the courts of this state, any other state or of the United States in the name of city to collect the amount delinquent, together with penalties and interest, court fees, filing fees, attorney's fees and other legal fees incident thereto.

(d)

Duty of successors or assignees of licensee to withhold tax from purchase money. If any licensee liable for any amount under sections 3-251—3-256 sells out his business or quits the business, his successors or assigns shall withhold a sufficient amount of the purchase price to cover such amount until the former owner produces a receipt from the city clerk showing that he has been paid or a certificate stating that no amount is due.

(e)

Liability for failure to withhold; certificate of notice of amount due; time to enforce successor's liability. If the purchaser of a business fails to withhold the purchase price as required, he becomes personally liable for the payment of the amount required to be withheld by him to the extent of the purchase price valued in money. Within thirty (30) days after receiving a written request from the purchaser for a certificate, the city clerk shall either issue the certificate or mail notice to the purchaser at his address, as it appears on the records of the city clerk, of the amount that must be paid as a condition of issuing the certificate. The time within which the obligation of the successor may be enforced shall begin at the time the licensee sells out his business or at the time that the determination against the licensee becomes final, whichever occurs later.

(f)

Refund of tax, penalty or interest paid more than once or illegally collected. Whenever the amount of any tax, penalty or interest has been paid more than once, or has been erroneously or illegally collected or received by the city under sections 3-251—3-256, it may be offset as provided in section 3-254(c) or it may be refunded provided a verified claim in writing therefor, stating the specific grounds upon which the claim is founded, is filed with the city clerk within three (3) years from the date of payment. The claim shall be audited and shall be made on forms provided by the city clerk. If the claim is approved by the city clerk and the city council, the excess amount collected or paid may be refunded or may be credited on any amounts then due and payable from the person from whom it was collected or by whom paid, and the balance may be refunded to such person, his administrators or executors.

(g)

The city council or its designated committee may decline to issue a license under this article when any person having any ownership interest in or control over the land or building in which the establishment to be operated pursuant to the license will be located does not meet the same character requirements as set forth in this section for the licensee.

(h)

If a person in whose name a license under this article is issued is not a county resident, such person must appoint and continuously maintain in the county a registered agent upon whom any process, notice or demand required or permitted by law or under this article may be served. The registered agent must be a resident of the county. If the licensee is not a natural person, it will be required to appoint and maintain a registered agent in the county if it does not have in the county any agent upon whom process can legally be served for such entity under the laws of the state. The licensee shall file the name of such registered agent, along with the written consent to serve of such agent, with the city clerk.

(i)

An application for a license under this article may be denied where it appears to the city council or its designated committee that the applicant does not have adequate financial strength, adequate financial participation in the proposed business to direct and manage its affairs, or where it appears that the applicant is intended or is likely to be a surrogate for a person who would not otherwise qualify for a license under this article.

(j)

The city council or its designated committee, in its discretion, may consider any extenuating circumstances which may reflect favorably or unfavorably on the applicant, the application or the proposed location of the establishment. If, in the city council's or the committee's judgment, circumstances are such that issuing of a license under this article would not be in the best interest of the general public, such circumstances may be grounds for denying the application.

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