Gilroy Municipal Code Art. VIII Failure to Collect and Report Tax

If any service supplier or non-utility supplier shall fail to make, within the time provided in this chapter, any report and remittance of said tax or any portion thereof required by this chapter, the tax collector shall proceed in such manner as he may deem best to obtain facts and information on which to base his estimate of the tax due. As soon as the tax collector shall procure such facts and information as he is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by any service supplier or non-utility supplier who has failed or refused to make such report and remittance, he shall proceed to determine and assess against such service supplier or non-utility supplier the tax, interest and penalties provided for by this chapter. In case such determination is made, the tax collector shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, addressed to the service supplier or non-utility supplier so assessed at his last known place of address.

(Ord. No. 99-12, Exh. B, 9-7-1999)

The service supplier or non-utility supplier may within ten (10) days after the serving or mailing of the notice referred to in section 26B.33 make application in writing to the tax collector for a hearing on the amount assessed. If application by the service supplier or non-utility supplier for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the tax collector shall become final and conclusive and immediately due and payable. If such application is made, the tax collector shall give not less than ten (10) days’ written notice in the manner prescribed herein to the services supplier or non-utility supplier to show cause at a time and place fixed in said notice why said amount specified therein should not be fixed for such tax, interest and penalties. At such hearing, the service supplier or non-utility supplier may appear and offer evidence why such specified tax, interest and penalties should not be so fixed.

(Ord. No. 99-12, Exh. B, 9-7-1999)

After a hearing on the amount of tax assessed, the tax collector shall determine the proper tax to be remitted, and shall thereafter give written notice to the service supplier or nonutility supplier in the manner prescribed above of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after fifteen (15) days of the date of notice of determination unless an appeal is taken as provided in this chapter.

(Ord. No. 99-12, Exh. B, 9-7-1999)

Whenever the tax collector determines that a service user has deliberately withheld the amount of any tax imposed on him by the provisions of this chapter from the amounts remitted to a service supplier or non-utility supplier required to collect the tax, or that a service user has failed to pay the amount of the tax to such service supplier or non-utility supplier for a period of four (4) or more billing periods, or whenever the tax collector deems it in the best interest of the city, he may relieve such service supplier or non-utility supplier of the obligation to collect taxes due under this chapter from certain named service users for specified billing periods. The tax collector shall notify the service user that he has assumed responsibility to collect the taxes due for the stated periods and demand payment of such taxes, plus any penalty imposed and such interest as may be due pursuant to the provisions of article VIII of this chapter. The notice shall be given to the service user by depositing the notice in the united states mail, postage prepaid thereon, addressed to the service user at the address to which billing was made by the service supplier or non-utility supplier required to collect the tax; or, should the service user have changed his address, to his last known address.

(Ord. No. 99-12, Exh. B, 9-7-1999)