3.01.260 Recovery of taxes, penalty and interest
A. All sums of money paid by the purchaser to the retailer as taxes imposed by this chapter shall be and remain public money, the property of the city, in the hands of such retailer, and such retailer shall hold the same in trust for the sole use and benefit of the city until paid to the Finance Director, and for failure to so pay to the Finance Director, such retailer shall be punished as provided herein.
B. 1. If a person neglects or refuses to make a return in payment of the sales or use tax or to pay any sales or use tax as required by this chapter, the Finance Director shall make an estimate, based upon such information as may be available, of the amount of taxes due for the period for which the taxpayer is delinquent and shall add thereto an administrative fee of fifteen dollars ($15.00) or a penalty equal to ten percent (10%) of the delinquent taxes, whichever is greater, and interest on such delinquent taxes at the rate established by the State Commissioner of Banking pursuant to C.R.S. § 39-21-110.5 plus one-half percent (0.5%) per month, not exceeding eighteen percent (18%) in the aggregate, from the date when due.
2. Promptly thereafter, the Finance Director shall give to the delinquent taxpayer written notice of deficiency in the amount of such estimated taxes, penalty, and interest, which notice of deficiency shall be sent by first-class mail directed to the last address of such person on file with the Finance Department. Within thirty (30) days after the notice of deficiency is mailed, the taxpayer may petition the Finance Director for a hearing in the manner provided in Section 3.01.330(A) and either may appeal to the District Court as provided in Section 3.01.340 or to the Department of Revenue as provided in Section 3.01.350.
C. 1. If any taxes, penalty, or interest imposed by this chapter and shown due by returns filed by the taxpayer or as shown by assessments duly made as provided in this section are not paid within five days after the same are due, then the Finance Director shall issue a notice, setting forth the name of the taxpayer, the amount of the tax, penalties and interest, the date of the accrual thereof, and that the city claims a first and prior lien therefor on the real and tangible personal property of the taxpayer except as to preexisting claims or liens of a bona fide mortgagee, pledgee, judgment creditor, or purchaser whose rights have attached prior to the filing of the notice as provided in this section on property of the taxpayer, other than the goods, stock in trade, and business fixtures of such taxpayer.
2. Said notice shall be on forms furnished by the Finance Department and shall be verified by the City Manager or by the Finance Director or any duly qualified agent of the City Manager or the Finance Director, whose duties are the collection of such tax, and may be filed in the office of the county clerk and recorder in which the taxpayer owns real or tangible personal property, and the filing of such notice shall create a lien on such property in that county and constitute notice thereof. After said notice has been filed, or concurrently therewith, or at any time when taxes due are unpaid, whether such notice shall have been filed or not, the Finance Director may issue a warrant directed to any duly authorized revenue collector, or to the sheriff of the county, commanding him to levy upon, seize, and sell sufficient of the real and personal property of the amount due together with interest, penalties, and costs, as may be provided by law, subject to valid preexisting claims or liens.
D. Such revenue collector or the sheriff shall forthwith levy upon sufficient of the property of the taxpayer or any property used by such taxpayer in conducting his retail business, except property made exempt from the tax lien pursuant to the provisions of Section 3.01.270(A)(2), and said property so levied upon shall be sold in all respects with like effect and in the same manner as is prescribed by law with respect to executions against property upon judgment of a court of record, and the remedies of garnishment shall apply. The sheriff shall be entitled to such fee in executing such warrants as are allowed by law for similar services.
E. Any lien for taxes as shown on the records of the county clerks and recorders as provided in this section, upon payment of all taxes, penalties, and interest covered thereby shall be released by the Finance Director in the same manner as mortgages and judgments are released.
F. 1. The Finance Director may also treat any such taxes, penalties, or interest due and unpaid as a debt due the city from the vendor. The return of the taxpayer or the assessment made by the Finance Director, as provided in this chapter, shall be prima facie proof of the amount due.
2. To recover such taxes, penalties or interest due, the Finance Director may bring an action in attachment, and a writ of attachment may be issued to the sheriff. In any such proceedings, no bond shall be required of the Finance Director, nor shall any sheriff require of the Finance Director an indemnifying bond for executing the writ of attachment or writ of execution upon any judgment entered in such proceedings. The Finance Director may prosecute appeals in such cases without the necessity of providing bond thereof. It is the duty of the City Attorney, when requested by the Finance Director, to commence action for the recovery of taxes due under this chapter, and this remedy shall be in addition to all other existing remedies or remedies provided in this chapter.
G. In any action affecting the title to real estate or the ownership or rights to possession of personal property, the city may be made a party defendant for the purpose of obtaining an adjudication or determination of its lien upon the property involved therein. In any such action, service of summons upon the Finance Director or any person in charge of the office of the Finance Director shall be sufficient service and shall be binding upon the city.
H. The Finance Director is authorized to waive, for good cause shown, any penalty assessed as provided in this chapter, and any interest imposed in excess of the rate determined pursuant to subsection (B) of this section shall be deemed a penalty.
I. If a taxpayer pays for any tax imposed pursuant to this chapter by check for which there are insufficient funds to cover such check, then the Finance Director may assess a penalty against such taxpayer. The Finance Director may require such taxpayer to pay all tax payments, whether due or to be due in the future, by certified funds, cashier’s check or cash. The penalty imposed by this subsection is in addition to all other penalties imposed pursuant to this chapter.
J. The city is a participant in the intergovernmental agreement with other cities in Colorado concerning intercity claims for the recovery of sales and use taxes paid to the wrong taxing jurisdiction as authorized by city resolution 90-134. The intent and procedure for filing a "Claim for Recovery" is set forth in the city sales and use tax rules and regulations set out in this section.
K. The Finance Director may issue summons and complaints for violations of this chapter as set forth in the Lakewood Municipal Code. (Ord. O-2015-3 § 8, 2015;Ord. O-2011-1 § 4 & 5, 2011; Ord. O-91-61 § 66 & 68, 1991; Ord. O-86-104 § 22, 1986; Ord. O-85-137 § 1 (part), 1985).