Sec. 34.68. - Debts, deficiencies and assessments.

(a)

The amount of any tax, fee, penalties, and interest imposed by this article shall be deemed a debt to the city and any person operating a cannabis business without first having procured a business license and paid all requisite business license taxes, as provided in this article, shall be liable in an action in the name of the city in any court of competent jurisdiction for the amount due.

(b)

If no return or statement is timely filed, or if the tax administrator is not satisfied that any return or other statement filed under this article is correct, or that the amount due is correctly computed, the tax administrator may determine that amount and make a deficiency determination upon available information. The tax administrator may make one (1) or more deficiency determinations for a period or periods. When a person discontinues engaging in a business, the tax administrator may make a deficiency determination at any time within three (3) years thereafter as to any liability arising from engaging in such business whether or not a deficiency determination is issued before the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned as are notices of assessment under section 34.68(c).

(c)

Under any of the following circumstances, the tax administrator may make and give notice of an assessment of taxes, fees, penalties and interest owed under this article:

(1)

If the person has not filed any statement or return required by this article;

(2)

If the person has not paid any tax, fee, penalty or interest due under this article;

(3)

If the person has not, after demand by the city filed a corrected statement or return, or adequate substantiation of the information contained in a statement or return previously filed, or paid any additional amount due under this article;

(4)

If the tax administrator determines nonpayment of any amount due under this article is due to fraud, a penalty of twenty-five (25) percent of the amount of otherwise due shall be added thereto in addition to penalties and interest otherwise stated in this article.

(5)

The notice of assessment shall separately set forth any amount the tax administrator knows or estimates to be due under this article, including any penalties or interest accrued to the date of the notice.

(6)

A notice of assessment shall be served upon the tax- or fee-payer either by personal service or by a deposit in the United States mail, postage prepaid, addressed to the address appearing on the local license issued under chapter 7, article XIII of this Code or such other address as a tax- or fee-payer may provide the tax administrator in writing for notices under this article; or, should the person have no business tax certificate issued and no address provided to the tax administrator for such purpose, then to such person's last known address. Service by mail is complete upon deposit in the United States mail as provided in this paragraph. If no address is known, notice may be given by posting at or near the location of the business.

(d)

Within ten (10) days after service of a notice of assessment, the tax- or fee-payer may apply in writing to the tax administrator for a hearing on the assessment. If no timely application for a hearing is made, the amount assessed shall be final and conclusive. Within thirty (30) days of the receipt of an application for hearing, the tax administrator shall cause the matter to be set for an administrative hearing using the procedures set forth in section 1.14.4 of this Code. The tax administrator shall give notice of such hearing to the person requesting it not later than five (5) business days before the hearing. At such hearing, the applicant may appear and offer why the assessment should not be confirmed. After such hearing, the hearing officer shall determine the amount due under this article and shall give written notice to the person as prescribed in this article for giving notice of assessment. That decision is final as to the city, but either the city or the appellant may seek judicial review as provided by California Code of Civil Procedure section 1094.6.

(Ord. No. 20-OR0502-1, § 1, 8-19-2020)