§ 8-2.616. Security for Collection of Tax.

(a)

The Tax Administrator, whenever the Tax Administrator deems it necessary to insure compliance with this article, may require any person subject thereto to deposit with the Tax Administrator such security in the form of cash, bond, or other security as the Tax Administrator may determine. The amount of the security shall be fixed by the Tax Administrator but shall not be greater than twice the person's estimated average liability for the period for which he/she files returns, determined in such manner as the Tax Administrator deems proper, or ten thousand dollars ($10,000.00), whichever amount is the lesser. The amount of the security may be increased or decreased by the Tax Administrator subject to the limitations herein provided.

(b)

If any operator liable for any amount under this article sells out or quits his/her business or a substantial portion thereof, his/her successors or assigns shall withhold sufficient of the purchase price to cover any transient occupancy tax which is due against any portion of the business unless the former operator produces a receipt from the Tax Administrator showing that he/she has been paid or a certificate stating that no amount is due. If the successors or assigns of a business fail to withhold the tax from the purchase price as required, they shall be personally liable for the payment of the amount required to be withheld by them to the extent of the purchase price, valued in money. Said tax shall be a lien against the purchase price for any portion of the business. The successors or assigns may request in writing a certificate of no tax due. Within thirty (30) days after receiving a written request from the successors or assigns for a certificate, the Tax Administrator shall either issue the certificate or mail notice to them at the address given in the request of the amount that must be paid as a condition of issuing the certificate. Failure of the Tax Administrator to mail the notice will release the successors and assigns from any further obligation to withhold the purchase price as above provided. The time within which the obligation of the successors and assigns may be enforced shall start to run at the time the operator sells out his/her business or at the time that the determination against the operator becomes final, whichever event occurs later.

(Added by Ord. 1402-C.S., Ord. 1403-C.S., amended by Ord. 3079-C.S. § 1, effective 3-19-98)