National City Municipal Code Art. VIII Collection, Enforcement and Penalties

A. Except as provided in Section 6.04.370(D) or (E), the collector, upon failure to pay a tax when due, shall add a penalty of twenty percent of the tax due on the first day of March and each first day of each month thereafter, provided that the amount of penalty added shall not exceed one hundred percent of the tax due for each year or portion thereof that the tax was unpaid.

B. 1.

No business tax license shall be issued or reissued to any person who, at the time of application, is indebted to the city for delinquent business taxes, fees or sewer charges, unless that person enters into a written agreement with the collector to pay all delinquent taxes or charges, and interest and penalties due in monthly installments, or more often, over a period not to exceed one year.

2. The agreement shall acknowledge the obligation is a debt owed to the city. Upon failure to make timely payment of any installment, the entire amount unpaid, including penalties and interest, shall become immediately due and payable. If legal action is brought by the city to enforce collection of any amount included in the agreement, that person shall pay all costs of suit incurred by the city or its assignee, including reasonable attorney's fees. The execution of an agreement shall not exonerate previously accrued penalties, but no further penalties or interest shall accrue on amounts included in the agreement during such time as the person is not in breach of the agreement. If, however, a default in payment occurs, then additional penalties and interest shall reattach back to the date of execution of the agreement and become due and payable.

C. Notwithstanding any other provision of this code, any person who misstates or falsifies gross receipts for taxation purposes or the nature of the business for classification purposes shall pay a penalty of one hundred percent of the balance of tax due for each year of misstatement, in addition to the balance of the actual taxes due. Payment of the penalty shall not discharge the taxpayer from liability from civil or criminal proceedings, if applicable.

D. Any person who fails to apply to the collector for the issuance of an initial business tax license and pay the prescribed tax within thirty calendar days from first beginning business is subject to a penalty of fifty percent plus twenty percent per month after the first thirty days has elapsed, not to exceed one hundred percent of the total tax due for the first year. The total tax will be computed on the basis of the gross receipts for the calendar year. Until payment is made in full, that person remains subject to the provisions of Section 6.04.380 regarding the involuntary cessation of business. Nothing contained herein shall constitute authorization to conduct business without a valid business tax license or before regulatory compliance approval.

E. Neither a penalty nor the provisions of Section 6.04.300 will be applicable to: (1) any licensed professional, such as an architect, engineer, consultant, or attorney who does not maintain an office in National City but is called upon to provide a single project service within National City, or to (2) any swap meet vendor or occasional contractor or vendor who is no longer exempted by Section 6.04.070(E)(5) or (7) or by Section 6.04.320(C), provided that that person pays the business tax within the first thirty days following the commencement of business in the city for that calendar year. If the tax is not paid within thirty days, a penalty will accrue from the date of commencement of business pursuant to Section 6.04.370(D). After payment of taxes due for the applicable calendar year, should the project continue into the next calendar year and be completed within the first two months of that following year, the collector is authorized to waive collection of tax for that following year.

(Ord. 2247 § 1 (part), 2004; Ord. 2224 § 2 (part), 2003)

A. The amount of any tax and any fees, charges or penalty imposed by the provisions of this chapter is a debt owed to the city. An action may be commenced in the name of the city in any court of competent jurisdiction for the amount due. The collector, with the concurrence of the city attorney, is authorized to compromise or adjust claims for back taxes that extend beyond the current year plus three prior years when it is in the best interests of the city; provided, however, that such authority shall not include compromising claims for any taxes due for continuing in business following the failure to renew a previously issued business tax license.

B. The collector shall set off any refunds, payments or credits owing to the taxpayer by the city against unpaid taxes and charges, and may require a business to cease business or remove equipment through which the business is conducted if the tax is not fully paid. Payments shall be applied first to satisfy the payment of the oldest tax and any penalties outstanding before being applied to satisfaction of later or current taxes. Upon notification by the collector, city departments shall withhold progress payments or payments for goods or services when the vendor or supplier has failed to pay taxes or penalties, or both, required under this chapter until the debt is satisfied.

C. Upon notification by the collector, other departments shall withhold development and building permits, except those permits necessary to correct code violations, until all delinquent taxes are paid. Administering departments will withhold related permits until notified otherwise by the collector.

D. The collector may request the city attorney to obtain a civil injunction or issue a criminal complaint if the business refuses to comply with this chapter or pay taxes. The collector is authorized to issue a stop order pursuant to Section 1.12.030 to require a noncompliant business to cease and desist from conducting business until compliance is obtained.

E. The conviction of a person for conducting any business without first paying the tax due does not exonerate that person from the payment of any tax due or still unpaid at the time of conviction. Late payment shall not prevent a criminal prosecution of any violation of the provisions of this chapter. All civil, administrative and criminal remedies prescribed are cumulative and the use of one or more remedies by the city shall not bar the use of any other remedy for enforcing the provisions of this chapter.

F. Neither the adoption of the ordinance codified in this chapter nor the superseding of any portion of any other ordinance of the city or the code shall in any manner be construed to affect prosecution for violations committed prior to the date of adoption, nor be construed as a waiver of any license required for or any penal provisions applicable to any such violation, nor shall it affect the validity of any bond or cash deposit required by any prior ordinance to be posted, filed, or deposited, and all rights and obligations thereby conferred shall continue in full force and effect.

(Ord. 2247 § 1 (part), 2004; Ord. 2224 § 2 (part), 2003)

Any mistake by the collector in computing or collecting any tax prescribed in this chapter shall not preclude collection by the city of the amount actually due, together with costs of collection, including reasonable attorney's fees fixed by the court, nor shall mistake preclude the prosecution of any person for violation of any provision of this chapter.

(Ord. 2224 § 2 (part), 2003)

A. The collector and each code compliance officer, public officer or police officer shall have the power and authority to enter any place of business free of charge at any reasonable time to demand production of its business tax license. It shall be the duty of any code compliance officer or building inspector conducting an inspection of any business premises to also require the owner or proprietor of an inspected property to produce proof of business license and to report violations to the collector. The collector will be responsible for any follow-up investigation and enforcement and shall notify the appropriate enforcement officer of any apparent code violation observed during inspections by the collector.

B. The collector may require the production of any records of the taxpayer necessary to verify the accuracy of any business tax license issued or business tax paid, upon at least twenty-four hours' prior notice. Records shall be made available at the taxpayer's place of business, or be delivered to the collector's office upon mutual agreement. In addition to any other remedies, the collector is authorized to assess a five-hundred-dollar administrative penalty against any taxpayer who refuses to produce such records following reasonable request by the collector. Procedures for appeal are as set forth in Section 6.04.160.

C. Each department of the city issuing development or building permits, public contracts or purchases shall require the production of a valid business tax license prior to the issuance of any contract to a vendor or a development permit to a licensed contractor, and upon notification by the collector shall not issue any development permit or building permit—except those reasonably necessary to correct code violations—until all outstanding tax delinquencies are satisfied.

D. As an aid in enforcement of the provisions of this chapter with respect to construction contractors and subcontractors, any person applying for any building or engineering permit or requesting final inspection of any construction project shall furnish the collector with a written list of the names and addresses of all contractors, subcontractors and material supply people engaged in working on the project.

E. The collector is authorized to require the owner or operator of a commercial or industrial property (other than a residential rental property) in National City to provide a current tenant list or mailbox rental list and information regarding the commencement of each tenancy or mailbox rental. It is unlawful for an owner or operator to refuse or fail to provide this information upon the reasonable request of the collector.

F. As a condition of a temporary use permit issued under Chapter 15.60, an itinerant business operating in National City shall provide information and records to the collector on sales transactions for which sales taxes are collected, and shall verify its gross receipts upon which the business tax is based.

G. The collector and designees with the duty to enforce this chapter are authorized to arrest persons without a warrant pursuant to Penal Code Section 836.5 whenever the person to be arrested has committed a violation of the provisions of this chapter in the collector's or designee's presence. When the person arrested does not demand to be taken before a magistrate, a written notice to appear shall be prepared and the person released on his or her promise to appear as prescribed by the Penal Code of the State of California (commencing with Section 853.6).

H. The collector is authorized to issue administrative citations pursuant to Chapter 1.44 of this code without prior notification in the enforcement of this chapter, and to impose administrative penalties for violations of this chapter. When appropriate, stop orders pursuant to Section 1.12.030 may be issued ordering a business in violation of this chapter to cease and desist from conducting business until the violation is corrected.

(Ord. 2247 § 1 (part), 2004; Ord. 2224 § 2 (part), 2003)