(a) In addition
to any remedy provided elsewhere in this City Code that may apply,
the Tax Collector may apply the provisions of subsections (b) through
(d) below concerning the collection of taxes when there is succession
in and/or cessation of business.
(b) The taxes
imposed by this Chapter are a lien on the property of any person subject
to this Chapter who sells his business or stock of goods, or quits
his business, if the person fails to make a final return and payment
of the tax within fifteen (15) days after selling or quitting his
business.
(c) Any person who purchases, or who acquires by foreclosure, by sale under trust deed or warranty
deed in lieu of foreclosure, or by any other method, improved real property or a portion of improved real property for which the Privilege Tax imposed by
this Chapter has not been paid shall be responsible for payment of such tax as a speculative builder or owner builder, as provided in Sections __-416 and
__-417.
(1) Any person who is a creditor or an affiliate of creditor, who acquires improved real
property directly or indirectly from the creditor's debtor by any means set forth in this subsection, shall pay the tax based on the amount
received by the creditor or its affiliate in a subsequent sale of such improved real property to a party unrelated to the creditor, regardless
of when such subsequent sale takes place. Such tax shall be due in the month following the month in which the sale of the improved real
property by the creditor or its affiliate occurs. Notwithstanding the foregoing, if the real property meets the definition of partially
improved residential real property in Section __-416(a)(4) and all of the requirements of Section __-416(b)(4) are met by the parties to the
subsequent sale transaction, then the tax shall not apply to the subsequent sale.
(2) In the event a creditor or its affiliate uses the acquired improved real property for any
business purpose, other than operating the property in the manner in which it was operated, or was intended to be operated, before the
acquisition or in any other manner unrelated to selling the property, the tax shall be due. The gross income upon which the tax shall be
determined pursuant to Sections __-416 and __-417 shall be the fair market value of the improved real property as of the date of acquisition.
The tax shall be due in the month following the month in which such first business use occurs. When applicable, the credit bid shall be deemed
to be the fair market value of the property as of the date of acquisition.
(3) Once the subsequent sale by the creditor or its affiliate has occurred and the creditor or
its affiliate has paid the tax due from it pursuant to this subsection, neither the creditor nor its affiliate, nor any future owner, shall be
liable for any outstanding tax, penalties or interest that may continue to be due from the debtor based on the transfer from the debtor to the
creditor or its affiliate.
(4) If the tax liability imposed by either Section __-416 or Section __-417 on the transfer of
the improved real property to the creditor or its affiliate, or any part thereof, is paid to the Tax Collector by the debtor subsequent to payment
of the tax by the creditor or its affiliate, the amount so paid may constitute a credit, as equitably determined by the Tax Collector in good faith,
against the tax imposed on the creditor or its affiliate by either paragraph 1 or paragraph 2 of this subsection.
(5) Notwithstanding anything in this Chapter to the contrary, if a creditor or its affiliate
is subject to tax as described in paragraph 1 or paragraph 2 of this subsection and such creditor or affiliate has not previously been required to
be licensed, such creditor or affiliate shall become licensed no later than the date on which the tax is due.
(d) A person's
successors or assignees shall withhold from the purchase money an
amount sufficient to cover the taxes required to be paid, and interest
or penalties due and payable, until the former owner produces a receipt
from the Tax Collector showing that all City tax has been paid or
a certificate stating that no amount is due as then shown by the records
of the Tax Collector. The Tax Collector shall respond to a request
from the seller for a certificate within fifteen (15) days by either
providing the certificate or a written notice stating why the certificate
cannot be issued.
(1) If a subsequent
audit shows a deficiency arising before the sale of the business,
the deficiency is an obligation of the seller and does not constitute
a liability against a buyer who has received a certificate from
the Tax Collector.
(2) If the purchaser
of a business or stock of goods fails to obtain a certificate as
provided by this Section, he is personally liable for payment of
the amount of taxes required to be paid by the former owner on account
of the business so purchased, with interest and penalties accrued
by the former owner or assignees.
