5.09.100 Deficiency determinations – Fraud – Evasion – Delay.
A. Deficiency Determination. If the tax administrator determines that a tax return by this chapter is incorrect, the tax administrator may compute and determine the amount required to be paid upon the basis of the facts contained in the return, or upon the basis of any relevant and credible information. One or more deficiency determinations may be made of the amount due for one or more periods, and the amount so determined shall be due and payable immediately upon service of notice as herein provided, after which the amount due is delinquent. Penalties on deficiencies shall be applied as provided in HRMC 5.09.090.
l. In making a deficiency determination, the tax administrator may offset any overpayments that may have been made, against any underpayment for a subsequent period(s), or against penalties, and interest, on the underpayments. The interest on under payments shall be computed in the manner set forth in HRMC 5.09.090.
2. The tax administrator shall give to the operator or occupant a written notice of the deficiency. The notice may be served personally or by mail. If by mail, the notice shall be addressed to the lodging tax collector at their address as it appears in the records of the tax administrator. In case of service by mail of any notice required by this chapter, the service is complete at the time of deposit in the United States Post Office.
3. Except in the case of fraud, intent to evade this chapter or authorized rules and regulations, every deficiency determination shall be made and notice thereof mailed within three years after the last day of the month following the close of the monthly period for which the deficiency is proposed to be determined, or within three years after the return is filed, whichever period expires last.
4. Any deficiency determination shall become due and payable immediately upon service of notice and shall become final within 10 days after the tax administrator has given notice thereof; provided, however, the operator may petition for redemption and refund if the petition is filed before the determination becomes final as herein provided.
B. Fraud – Refusal to Collect – Evasion. If any lodging tax collector fails or refuses to collect the tax or to make, within the time provided in this chapter, any report or remittance of tax or any portion thereof required by this chapter, or makes a fraudulent return or otherwise willfully attempts to evade this chapter, the tax administrator shall proceed to obtain facts and information on which to base an estimate of the tax due. As soon as the tax administrator has determined the tax due that is imposed by this chapter from any lodging tax collector who has failed or refused to collect or report and remit the tax, the tax administrator shall proceed to determine and assess against such lodging tax collector the tax, interest and penalties provided for by this chapter. In case such determination is made, the tax administrator shall give notice of the amount due. The determination and notice shall be made and mailed within three years after discovery by the tax administrator of any fraud, intent to evade or failure or refusal to collect the tax, or failure to file a required return. Any determination shall become due and payable immediately upon delivery of notice and shall become final within 10 days after the tax administrator has given notice thereof. However, the lodging tax collector may petition for redemption and refund if the petition is filed before the determination becomes final as herein provided.
C. Lodging Tax Collector Delay. If the tax administrator determines that the collection of any tax or any amount of tax required to be collected and paid to the City will be jeopardized by delay, or if any determination will be jeopardized by delay, the tax administrator shall determine the tax amount required to be collected. The amount so determined shall be immediately due and payable, and the lodging tax collector shall immediately pay the determined amount to the tax administrator after service of notice thereof. The lodging tax collector may, however, petition, after payment is made, for redemption and refund of the determination, if the petition is filed within 10 days from the date of service of notice by the tax administrator. (Ord. 2055 Exh. A, 2020; Ord. 1500, 1981)