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<br />Powers and duties of Commissioner when dealer fails to make report
<br />or files fraudulent report; assessment when invoice does not
<br />show correct price; assessment when actual consideration not
<br />shown.
<br />Section 18. (a) In the event any dealer fails to make a report as
<br />provided by this Ordinance, or makes a grossly incorrect report, or
<br />a report that is false or fraudulent, it shall be the duty of the Com-
<br />missioner to make an estimate for the taxable period of retail sales
<br />of such dealer in the City, or of the gross proceeds from rentals or
<br />leases of tangible personal property by the dealer in the City, and an
<br />estimate of the cost price of all articles of tangible personal prop-
<br />erty imported by the dealer for use, consumption or distribution in
<br />the City, or storage to be used, consumed or distributed in the City,
<br />and assess the tax, plus interest and penalties. The Commissioner
<br />shall give such dealer ten days' notice, in writing, requiring such
<br />dealer to appear before him or an assistant with such books, records
<br />and papers as he may require relating to the business of such dealer
<br />for such taxable period; and the Commissioner may require such
<br />dealer or the agents and employees of such dealer to give testimony
<br />or to answer interrogatories under oath administered by the Com-
<br />missioner or his assistants respecting the sale at retail in the City,
<br />the rental or lease in the City, the use, consumption or distribution
<br />in the City, or the storage for use, consumption or distribution in
<br />the City of tangible personal property or taxable services, or the
<br />failure to make report thereof as provided in this Ordinance. If any
<br />dealer fails to make any such report or refuses to permit an exami-
<br />nation of his books, records or papers, or to appear and answer ques-
<br />tions within the Jscope of such investigation relating to the sale,
<br />lease, rental, use, consumption, distribution or storage of tangible
<br />personal property or taxable services, the Commissioner is hereby
<br />authorized to make the assessment based upon such information as
<br />may be available to him and to issue a warrant for the collection of
<br />any such taxes, interest or penalties so found to be due. The assess-
<br />ment so made shall be deemed prima facie correct.
<br />(b) If the dealer has imported the tangible personal property and
<br />fails to produce an invoice showing the cost price of the articles, or
<br />the invoice does not reflect the true or actual cost price as defined in
<br />this Ordinance, then the Commissioner shall ascertain, in any man-
<br />ner feasible, the true cost price and assess the tax with penalties and
<br />interest, to the extent such have accrued, on the true cost price as
<br />ascertained by him. The assessment so made shall be deemed prima
<br />facie correct.
<br />(c) In the case of the lease or rental of tangible personal property,
<br />if the consideration given or reported by the dealer, in the judgment
<br />of the Commissioner, does not represent the true or actual considera-
<br />tion, then the Commissioner is authorized to fix the same and assess
<br />the tax thereon in the same manner as above provided, with penalties
<br />and interest to the extent such have accrued. The assessment so made
<br />shall be deemed prima facie correct.
<br />Records of sales or purchases to be kept by dealers; preservation of
<br />records; examination of records by commissioners.
<br />Section 19. (a) Every dealer required to make a report and pay any
<br />tax under this Ordinance shall keep and preserve suitable records of
<br />the sales or purchases, as the case may be, taxable under this Ordi-
<br />nance, and such other books of account as may be necessary to de-
<br />termine the amount of tax due hereunder, and such other pertinent
<br />information as may be required by the Commissioner; and every
<br />such dealer shall keep and preserve for a period of two years all in-
<br />voices and other records of goods, wares and merchandise, or other
<br />subjects of taxation under this Ordinance; and all such books, in-
<br />voices and other records shall be open to examination at all reason-
<br />able hours by the Commissioner or any of his duly authorized agents.
<br />(b) In order to aid in the administration and enforcement of the
<br />provisions of this Ordinance, all wholesalers and jobbers in the City
<br />are hereby required to keep a record of all sales of tangible personal
<br />property, whether such sales be for cash or on terms of credit. The
<br />record required to be kept by all wholesalers and jobbers shall include
<br />the name and address of the purchaser, the date of the purchase,
<br />the article purchased and the price at which the article is sold to the
<br />purchaser. These records shall be kept for a period of two years and
<br />shall be open to the inspection of the Commissioner or his duly au-
<br />thorized agents at all reasonable hours during the day.
<br />(c) For the purpose of enforcing the collection of the tax levied
<br />by this Ordinance, the Commissioner is hereby specifically empowered,
<br />through his authorized agents, to examine, at all reasonable hours
<br />during the day, the books, records and other documents of all trans-
<br />portation companies, agencies, firms or persons as defined herein that
<br />conduct their business by truck, rail, water, airplane or otherwise,
<br />in order to determine what dealers are importing or are otherwise
<br />shipping articles of tangible personal property which are liable for
<br />the said tax. In the event such transportation company, agency, firm
<br />or person as defined herein shall refuse to permit such examination
<br />of its or his books, records and other documents by the Commis -
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<br />sioner, it or he shall be deemed guilty of a misdemeanor and the
<br />missioner may proceed by citing said transportation company, agency,
<br />firm or person to show cause before any court of record as to why
<br />such books, records and other documents should not be examined pur-
<br />suant to the injunction of the court, and as to why a bond should not
<br />be required with proper security in the penalty of not more than ..
<br />two thousand dollars, conditioned upon compliance with the provi-
<br />sions hereof for a period of not more than one year.
<br />Demand for immediate payment of taxes; bond may be required of
<br />taxpayers. a
<br />Section 20. (a) If the Commissioner is of the opinion that the col-
<br />lection of any tax or any amount of tax required to be collected and
<br />paid to the City under this Ordinance will be jeopardized by delay,
<br />he shall make an assessment of the tax and shall mail or issue a no-
<br />tice of such assessment to the taxpayer, together with a demand for
<br />immediate payment of the tax or of the deficiency in tax declared to
<br />be in jeopardy, including interest and penalties. In the case of a tax
<br />for a current period, the Commissioner may declare the taxable pe-
<br />riod of the taxpayer immediately terminated and shall cause notice
<br />of such finding and declaration to be mailed or issued to the tax-
<br />payer, together with a demand for immediate payment of the tax
<br />based on the period declared terminated, and such tax shall im-
<br />mediately be due and payable, whether or not the time otherwise al-
<br />lowed by law for filing a report or remitting the tax has expired. If
<br />any such tax, penalty or interest is not paid upon such demand, the
<br />Commissioner shall issue a warrant and proceed to collect the same
<br />by legal process, or, in his discretion, he may require the taxpayer to
<br />file such bond as in the judgment of the Commissioner may be suffi-
<br />cient to protect the interest of the City.
<br />(b) The Commissioner, when in his judgment it is necessary or
<br />advisable so to do in order to secure the collection of the tax levied
<br />by this Ordinance, may require any person subject to such tax to file
<br />with him a bond with a surety company authorized to do business in
<br />the State as surety, in such reasonable amount as the Commissioner
<br />may fix to secure the payment of any tax, penalty or interest due or
<br />which may become due from such person. In lieu of such bond, securi-
<br />ties approved by the Commissioner may be deposited with him, which
<br />securities shall be kept in his custody, and shall be sold by him at
<br />public or private sale without notice to the depositor thereof, if it
<br />becomes necessary so to do in order to recover any tax, penalty or
<br />interest due the City under this Ordinance. Upon any such sale, _the
<br />_AME
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<br />surplus, if any, above the amounts due under this Ordinance shall be
<br />returned to the person who deposited the securities.
<br />Permit for direct payment of tax by user of property. :.
<br />Section 21. (a) Notwithstanding any other provisions of this Ordi-
<br />nance, the Commissioner may authorize a manufacturer, mine oper-
<br />ator or public service corporation who is a user, consumer, distributor
<br />or lessee to whom sales or leases of tangible personal property or
<br />sales of taxable services are made under circumstances which nor-
<br />mally make it impossible at the time of sale or lease to determine the
<br />manner in which such property will be used by such purchaser, con-
<br />sumer or lessee, to pay the tax levied by this Ordinance directly to
<br />the City, and waive the collection of the tax by the dealer; but no
<br />such authority shall be granted or exercised except upon application
<br />to the Commissioner and the issuance by the Commissioner of a direct
<br />` payment permit. If a direct payment permit is granted, then payment
<br />of the tax on all sales and leases, including sales and leases of tangible
<br />personal property and sales of taxable services the manner of the
<br />use of which is known at the time of the sale or lease, shall be made to
<br />the City Treasurer by the permit holder.
<br />(b) On or before the twentieth day of each month, each permit
<br />holder shall make and file with the Commissioner a return for the
<br />preceding month on such form as is prescribed by the Commissioner
<br />showing the total value of the tangible personal property and tax-
<br />able services so used, the amount of tax due from the permit holder
<br />(which amount shall be paid to the City Treasurer with such return)
<br />and such other information as the Commissioner deems necessary.
<br />(c) It shall be the duty of every permit holder required to make a
<br />return and pay any tax under this Section to keep and preserve suit-
<br />able records of purchases, together with invoices of purchases, bills
<br />of lading and such other pertinent records and documents in such
<br />form as the Commissioner requires by regulation. All such records
<br />and other documents shall be open during business hours to the in-
<br />spection of the Commissioner or his duly authorized agents and shall
<br />be preserved for a period of two years, unless the Commissioner, in
<br />writing, has authorized their destruction or disposal at all earlier
<br />date.
<br />(d) A permit granted pursuant to this Section shall continue to be
<br />valid until surrendered by the holder or cancelled for cause by the
<br />Commissioner.
<br />(e) Persons who hold a direct payment permit which has not been
<br />cancelled shall not be required to pay the tax to the dealer as other-
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