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ORDINANCE NO. 18,529
4 AN ORDINANCE TO AMEND LITTLE ROCK, ARK., REV. CODE §§ 17-
5 97 and -98 (1988), TO PROVIDE FOR THE ENFORCEMENT AND
6 COLLECTION OF THE TWO (2 %) PERCENT TAX UPON THE GROSS
7 RECEIPTS DERIVED FROM RENTING, LEASING OR OTHERWISE
8 FURNISHING HOTEL OR MOTEL ACCOMMODATIONS FOR PROFIT
9 WITHIN THE CITY, AND UPON THE GROSS RECEIPTS RECEIVED BY
10 RESTAURANTS, CAFES AND CAFETERIAS, AND ALL OTHER
11 ESTABLISHMENTS ENGAGED IN THE SELLING OF PREPARED
12 FOOD FOR CONSUMPTION ON THE PREMISES; TO PRESCRIBE
13 OTHER MATTERS; TO DECLARE AN EMERGENCY; AND FOR OTHER
14 PURPOSES.
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16 WHEREAS, pursuant to Act 185 of 1965, as amended, the City of Little Rock,
17 Arkansas (the "City") passed Little Rock, Ark., Ordinance No. 12,353 (May 4, 1970)( "LRO
18 _ "), and levied, effective July 1, 1970, a tax of one percent (1 %) upon the gross receipts
19 from the renting, leasing or otherwise furnishing of hotel or motel accommodations for
20 profit within the City, and upon the gross receipts of restaurants, cafes, cafeterias and all
21 other establishments engaged in the business of selling prepared food for consumption on
22 the premises of such establishments in the City and providing for other matters, and
23 WHEREAS, the City passed LRO 13,527 (November 7, 1978), and levied an
24 additional one per cent (1 %) tax upon the gross receipts from the renting, leasing or
25 otherwise furnishing of hotel or motel accommodations for profit in the City and upon the
26 gross receipts of restaurants, cafes, cafeterias and all other establishments engaged in the
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business of selling prepared food for consumption on the premises of such establishments
in the City and providing for other matters, and
WHEREAS, the City desires to establish the procedure for the collection and
enforcement of the tax levied by LRO 12,353 and LRO 13,527 as authorized and prescribed
by State Law.
NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF
THE CITY OF LITTLE ROCK, ARKANSAS:
Section 1. Little Rock, Ark., Rev. Code §§ 17 -97 and —98 (1988) be amended to
read as follows:
Section 1. Title, Purpose.
(a) This Ordinance shall be known and may be cited as the "Little
Rock A &P Gross Receipts Tax Collection and Enforcement Ordinance."
(b) The purpose of this Ordinance is to provide the procedures for the
enforcement and collection of the tax levied by the City pursuant to
Ordinance No. 12,353 and Ordinance No. 13,527, as amended from time to
time.
Section 2. Application of Ordinance and Construction with other Laws.
The provisions of this Ordinance shall be cumulative to the Arkansas Gross
Receipts Act of 1941, A.C.A. §26 -52 -101, et. seq., and the Arkansas Tax
Procedure Act, §26 -18 -101, et. seq., the provisions of which, so far as is
practicable, shall be deemed incorporated herein as applicable with respect
to the enforcement and collection of the A &P Tax.
Section 3. Definitions. The following words and phrases, except where the
context clearly indicates the application of a different meaning, when used in
this ordinance shall have the following meanings:
(a) "A &P Tax" means the gross receipts tax levied by Ordinance No.
12,353 and Ordinance No. 13,527, as amended from time to time.
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1 (b) "assessment" means a tax is assessed when it is recorded as the
2 liability of a taxpayer on the Commissions records. The assessment becomes
3 a first assessment following the decision of the Commission or a hearing
4 officer, if the assessment is protested.
5 (c) "business entity" means a corporation, association, partnership,
6 joint venture, limited liability company, limited liability partnership, trust or
7 other legal business entity.
8 (d) "Commission" means the City Advertising and Promotion
v Commission of Little Rock, Arkansas and any agent or representative
10 designated by the Commission to perform any function hereunder.
11 (e) "City" means the City of Little Rock, Arkansas.
12 (f) "delinquency date" means the A &P Tax is delinquent and subject
13 to penalty on the first day of the month following the month it was due.
14 (g) "due date" means the A &P Tax is due no later than the 201h
15 calendar day of the month following the month the tax is imposed on gross
16 receipts.
17 (h) "person" means any natural person, firm, corporation or other
18 business entity.
19 (i) "taxpayer" means any person liable to remit the A &P.
20 Section 4. Administration and Regulations. The administration of this
21 Ordinance is vested in the Commission and the Commission shall
22 promulgate rules and regulations and prescribe all forms as are necessary or
23 required for the enforcement and collection of the A &P Tax.
24 Section 5. Permits.
25 (a) It shall be unlawful for any person subject to the A &P Tax to
26 transact business within the City prior to the issuance and receipt of an A &P
27 Tax Permit from the Commission.
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(b) A separate A &P Tax Permit must be obtained from the
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Commission for each location whereat the person conducts a business which
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is subject to the A &P Tax.
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(c) An A &P Tax Permit shall have no stated term.
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Section 6. Application for Permit. Any person subject to the A &P Tax
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transacting business in the City shall file with the Commission an application
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for an A &P Tax Permit to conduct that business, the form and contents of
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which application shall be as prescribed by the Commission from time to
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time.
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Section 7. Permits not assignable, display required and expiration.
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(a) The A &P Tax Permit shall not be assignable and shall be valid only
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for the person in whose name it is issued and for the location thereon
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designated.
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(b) The A &P Tax Permit shall at all times be conspicuously displayed
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at the location thereon designated.
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(c) The A &P Tax Permit shall expire at the time of cessation of the
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business of the person at the location designated thereon.
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Section 8. Discontinuance of business - Unpaid Taxes.
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(a) (1) Any person operating under an A &P Tax Permit, upon
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discontinuance of the business at the location designated thereon, shall
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return the A &P Tax Permit to the Commission for cancellation together with
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remittance of any unpaid and accrued A &P Taxes.
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(2) Failure to surrender the A &P Tax Permit and pay any and
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all accrued A &P Taxes shall be sufficient cause for the Commission,
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through its designated representative, to refuse the issuance of any
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A &P Tax Permit in the future to the person.
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1 (3) In the case of the sale of any business which is subject to the
2 A &P Tax, the A &P Tax shall be deemed to be due and payable at the
3 time of the sale of fixtures and equipment incident to business and
4 shall constitute a lien against the said fixtures and equipment in the
5 hands of the purchaser of the business until all A &P Taxes have been
6 paid.
7 Section 9. Revocation or suspension - Renewal.
8 (a) Whenever a person to whom an A &P Tax Permit has been issued
9 fails to comply with any provision of this Ordinance, including any rule or
10 regulation prescribed by the Commission from time to time, the
11 Commission, through its designated representative, shall give notice to the
12 person of an intention to revoke the A &P Permit.
13 (b) ( 1) The person may, within ten (10) days after receipt of the
14 Notice of Intent to Revoke the A &P Tax Permit, apply to the
15 Commission for a hearing.
16 (2) The hearing shall be conducted at a time and place to be
17 designated by the Commission before such person as is designated by
18 the Commission to conduct such hearing, and the person requesting
19 the hearing shall be entitled to introduce testimony and be
20 represented by counsel, and the designated representative of the
21 Commission shall determine at the hearing whether the person *s A &P
22 Tax Permit should be revoked.
23 (3) Failure of the person to appear at the hearing shall be
24 grounds for the Commission, acting through its designated
25 representative, to revoke the Taxpayer *s A &P Tax Permit.
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I (c) The person shall be entitled, within thirty (30) days from the date
2 of the revocation of the A &P Tax Permit, to appeal to the Circuit Court of
3 Pulaski County, Arkansas, where the action shall be tried de novo.
4 (d) An appeal shall lie from the Circuit Court to the Supreme Court of
5 Arkansas as in other cases provided by law.
6 (e) Any revoked or suspended permit may be renewed upon the filing
7 of proper returns and the payment of all A &P taxes due or removal of any
8 other cause of revocation or suspension.
9 Section 10.. Preparation of returns - Payment of A &P Tax.
10 (a) The A &P Tax shall be due and payable as of the first day of each
11 calendar month by the person liable for the payment of the A &P Tax
12 (taxpayer) and shall be delinquent if not paid on or before the first day of the
13 next calendar month.
14 (b) (1) It shall be the duty of the taxpayer on or before the
15 twentieth day of each calendar month to deliver to the Commission,
16 upon forms prescribed and furnished by the Commission, returns
17 under oath showing the total combined gross receipts which are
18 subject to the A &P Tax for the preceding calendar month and the
19 amount of tax due. The tax due shall be remitted with the return.
20 (2) The returns shall contain such further information as the
21 Commission may require and, once the taxpayer has become liable for
22 the payment of the A &P Tax, the taxpayer must continue to file a
23 return, even though no tax may be due, until such time has the
24 taxpayer surrenders the A &P Tax Permit.
25 (c) If not paid on or before the twentieth day of each calendar month,
26 the full amount of the A &P Tax shall be due from that date; provided,
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1 however, no penalty for delinquency shall be assessed if payment thereof is
2 made on or before the first day of the calendar month next following.
3 Section 11. Discount for prompt payment.
4 (a) If the return is delivered on or before the twentieth (20th) day of the
5 calendar month, the taxpayer may remit therewith to the Commission
6 ninety-eight (98 %) percent of the A &P Tax due on or before the twentieth
7 (20th) of that calendar month. A return is "delivered" on the date it is
8 postmarked if it is delivered by U.S. Postal Service.
9 (b) Failure of the taxpayer to remit the A &P Tax on or before the
10 twentieth of each calendar month shall cause the taxpayer to forfeit his claim
11 to the discount and the Taxpayer must remit to the Commission one
12 hundred (100 %) percent of the amount of the A &P Tax due, plus any penalty
13 and interest accrued thereon.
14 Section 12. Additional Penalties and Tax. If a taxpayer shall fail to comply
15 with certain provisions of this ordinance, then the following penalties and
16 additions to tax shall be applicable:
17 (1) In the case of a taxpayer *s failure to file the A &P Tax Return and
18 pay the tax due on or before the date prescribed, determined with regard to
19 any extension of time for filing thereof, unless it is shown that the failure is
20 due to reasonable cause and not to willful neglect, there shall be added to the
21 amount required to be shown as tax on the A &P Tax return five percent (5 %)
22 of the amount of the A &P Tax if the failure is not more than one (1) month,
23 with an additional five percent (5 %) for each additional month or fraction
24 thereof during which the failure continues, not to exceed thirty-five percent
25 (35 %) in the aggregate;
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(2) In addition to any penalty assessed hereunder, simple interest on
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any unpaid A &P Tax shall be assessed at the rate of (10 %) percent per
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annum from the delinquency date.
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Section 13. Examinations and investigations.
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(a) In the administration of this Ordinance, the Commission or its
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designated representatives, for the purpose of determining the accuracy of a
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return or fixing any liability hereunder, may make an examination or
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investigation of the place of business, the tangible personal property,
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equipment, and facilities, and the books, records, papers, vouchers, accounts,
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and documents of any taxpayer or other person. Every taxpayer or other
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person and his agents and employees shall exhibit to the Commission its
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designated representative these places of business and items and facilitate
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any examination or investigation.
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(b) No taxpayer shall be subjected to unnecessary examination or
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investigations, and only one (1) inspection of a taxpayer *s books of account
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may be made for each taxable year unless the taxpayer requests otherwise or
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unless the Commission or the Executive Director, after investigation, notifies
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the taxpayer in writing that an additional inspection is necessary.
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(c) (1) When conducting an investigation or an audit of any
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taxpayer, the Commission or its designated representatives may, in its
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discretion, examine the records and files of any person, except where
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privileged by law, any other business, institution, financial institution, the
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records of any state agency, agency of the United States Government, or
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agency of any other state where permitted by agreement or reciprocity.
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(2) The Commission or its designated representative may
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compel production of these records by summons. A summons may be
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served directly by the Commission or its designated representatives.
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1 (d) In the administration of this Ordinance, the Commission, the
2 Executive Director or his designated representatives may:
3 (1) Administer oaths, conduct hearings, and compel by
4 summons the attendance of witnesses, testimony, and the production
5 of any books, records, papers, or other data of any person or taxpayer;
6 or
7 (2) (A) Examine under oath any person regarding the
g business of any taxpayer concerning any matter incident to the
9 administration of this Ordinance.
10 (B) The fees of witnesses required by the Commission,
11 the Executive Director or his designated representatives to
12 attend any hearing shall be the same as those allowed to the
13 witnesses appearing before circuit courts of this state. The fees
14 shall be paid in the manner provided for the payment of other
15 expenses incident to the administration hereof.
16 (e) (1) The investigation may extend to any person that the
17 Commission or its designated representative determines has access to
1s information which may be relevant to the examination or
19 investigation.
20 (2) When any summons requiring the production of records as
21 described in subsection (c) of this section is served on a third -party
22 record keeper, written notice of the summons shall be mailed to the
23 taxpayer that his records are being summoned, at least fourteen (14)
24 days prior to the date fixed in the summons as the day for the
25 examination of the records.
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1 (3) Notice to the taxpayer required by this section is sufficient if
2 it is mailed by certified mail to the last address on record with the
3 Commission.
4 (f) When the Commission or its designated representatives have the
5 power to issue a summons for its own investigative or auditing
6 purposes, then the Commission shall honor any reasonable request by
7 any taxpayer to issue a summons on the taxpayer *s behalf.
g (g) (1) The Commission or the taxpayer may apply to a court of
9 competent jurisdiction in Pulaski County, Arkansas for an order
10 compelling the production of the summoned records.
11 (2) Failure to comply with the order of the court for the
12 production of records may be punished by the court as for contempt.
13 (h) (1) The cost of producing records of a third party required by a
14 summons shall be borne by the taxpayer if he requests the summons
15 to be issued.
16 (2) If the Commission or its designated representatives initiate
17 the summons for third -party records, the Commission shall bear the
18 reasonable cost of producing the records. The Commission or its
19 designated representatives may later assess the cost against any
20 delinquent or deficient taxpayer as determined by the records.
21 Section 14. Time limitations for assessments, collection, refunds, and
22 prosecution.
23 (a) Except as otherwise provided in this Ordinance, no assessment of
24 the A &P Tax shall be made after the expiration of three (3) years from the
25 date the return was required to be filed or the date the return was filed,
26 whichever period expires later. The Commission shall not begin court
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I proceedings after the expiration of the three -year period unless there has
2 been a previous assessment for the collection of the tax.
3 (b) Upon written agreement of the Commission and the taxpayer, the
4 time within which the Commission may make a final assessment, as
5 provided herein, may be extended to a date mutually agreed upon in the
6 written agreement.
7 (c) Where, before the expiration of the time prescribed for the
s assessment of the tax or of extensions thereof, both the Commission and the
9 taxpayer have consented in writing to an assessment after that time, then the
to A &P Tax may be assessed at any time prior to the expiration of time agreed
11 upon.
12 (d) In the case of a fraudulent return or failure to file a report or return
13 required hereunder, the Commission may compute, determine, and assess
14 the estimated amount of A &P Tax due from any information in its
15 possession or may begin an action in court for the collection of the tax
16 without assessment, at any time.
17 (e) Whenever a taxpayer requests an extension of time for filing any
18 return required hereunder, the limitation of time for assessing any tax shall
19 be extended for a like period.
20 (f) Where the assessment of the A &P Tax has been made within the
21 period of limitation properly applicable thereto, the A &P Tax may be
22 collected by levy or proceeding in court, but only if the levy is made or the
23 proceeding is begun within ten (10) years after the date of the assessment of
24 the tax.
25 (g) No person shall be prosecuted, tried, or punished for any of the
26 various criminal offenses arising under the provisions of this Ordinance
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I unless the indictment of the taxpayer is instituted within six (6) years after
2 the commission of the offense.
3 Section 15. Notice requirements.
4 (a) (1) The Commission shall give a taxpayer notice of any
5 assessment, demand, decision, or hearing before the Commission or
6 its designated representative which directly involves that taxpayer.
y (2) All notices required to be given by the Commission to a
g taxpayer shall be either served by personal service or sent by mail to
9 the taxpayer *s last address on record with the Commission. If this
10 mail is returned unclaimed or refused, then proper notice shall have
11 been served and given, and the Commission may take any action
12 permitted by this Ordinance or otherwise by law.
13 (3) All notices of final assessment hereunder shall be sent by
14 certified mail, return receipt requested.
15 (b) The taxpayer, when giving notice to the Commission, shall give
16 notice either by mail or by personal service on the Commission. The
17 notice the taxpayer gives shall be effective when postmarked or, in
18 case of personal service, when so served.
19 (c) The Commission and any taxpayer may, by written agreement,
20 provide for any other reasonable means of giving notice.
21 (d) All notices shall be in writing.
22 Section 16. Assessment and collection of taxes generally.
23 (a) ( 1) The Commission or its designated representatives are
24 authorized and required to make the inquiries, determinations, and
25 assessments of the A &P Tax, including interest, additions to taxes,
26 and assessable penalties, imposed hereby.
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1 (2) The assessment shall be made by recording the liability of
2 the taxpayer in the offices of the Commission in accordance with rules
3 or regulations prescribed by the Commission.
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(3) Upon request of the taxpayer, the Commission shall furnish
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the taxpayer a copy of the record of the assessment.
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(b) (1) The Commission shall collect all A &P Taxes imposed by
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law.
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(2) As soon as practicable after the making of assessment of the
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A &P Tax, the Commission shall give notice to each person liable for
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the unpaid tax, stating the amount and demanding payment within
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ten (10) days.
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(3) Upon receipt of notice and demand from the Commission,
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the person liable for the tax shall pay the stated amount including any
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interest, additions to tax, and assessable penalties at the place and
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time stated in the notice and demand.
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Section 17. Proposed assessments.
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(a) (1) If any taxpayer fails to file any return as required hereunder,
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the Commission, from any information in its possession or obtainable
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by it, may determine the correct amount of tax for the taxable period.
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If a return has been filed, the Commission or its designated
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representatives shall examine the return and make any audit or
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investigation that is considered necessary.
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(2) When no return has been filed and the Commission
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determines that there is an A &P Tax due for the taxable period or
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when a return has been filed and the Commission determines that the
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A &P Tax disclosed by the return is less than the tax disclosed by its
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examination, the Commission shall propose the assessment of
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1 additional tax plus penalties, as the case may be, and shall give notice
2 of the proposed assessment to the taxpayer. The notice shall explain
3 the basis for the proposed assessment and shall state that a final
4 assessment, as provided for herein, will be made if the taxpayer does
5 not protest such proposed assessment as provided hereby. The
6 taxpayer does not have to protest the proposed assessment to later be
7 entitled to exercise the right to seek a judicial review of the
8 assessment.
9 (b) Any demand for additional payment of the A &P Tax which is
10 made as the result of a verification of a mathematical error on the
11 return shall not be deemed to be a proposed assessment under the
12 provisions of this section and shall not be subject to the hearing or
13 appeal provisions of this Section.
14 Section 18. Taxpayer relief.
15 (a) Any taxpayer who wishes to seek administrative relief from any
16 proposed assessment of taxes or proposed notice of disallowance of a claim
17 for refund by the Commission shall follow the procedure provided by this
18 section.
19 (b) (1) A taxpayer may at his option either request the Commission
20 to consider his request for relief solely upon written documents
21 furnished by the taxpayer or upon the written documents and any
22 evidence produced by the taxpayer at a hearing.
23 (2) A taxpayer who requests the Commission to render its
24 decision based on written documents is not entitled by law to any
25 other administrative hearing prior to the Commission *s rendering of
26 its decision and, if necessary, the issuing of a final assessment and
27 demand for payment or issuing of a certificate of indebtedness.
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1 (c) Within thirty (30) days after service of notice of the proposed
2 assessment, the taxpayer may file with the Commission a written
3 protest under oath, signed by himself or his authorized agent, setting
4 forth the taxpayer *s reasons for opposing the proposed assessment.
s (d) The Commission may, in its discretion, extend the time for filing a
6 protest for any period of time not to exceed an additional ninety-day
7 period.
S Section 19. Hearing on proposed assessments.
9 (a) (1) The Executive Director or his designee shall serve as hearing
to officer to review all written protests submitted by taxpayers, hold all
11 hearings, and make written findings as to the applicability of the
12 proposed assessment.
13 (2) Decisions of the hearing officer shall be final unless revised
14 by the Commission.
is (3) The hearing on written and oral protests and determinations
16 made by the hearing officer shall not be subject to the provisions of
17 the Arkansas Administrative Procedure Act, § 25 -15 -201 et seq.
18 (b) The actual hearing on the written protest shall be held in the
19 Commission's offices.
20 (c) (1) The hearing officer shall set the time and place for hearing
21 on the written protest and shall give the taxpayer reasonable notice
22 thereof.
23 (2) At the hearing, the taxpayer may be represented by an
24 authorized representative and may present evidence in support of his
29 position.
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1 (3) After the hearing, the hearing officer shall render his
2 decision in writing and shall serve copies upon both the taxpayer and
3 the Commission.
4 (4) (a) If the proposed assessment is sustained, in whole or
5 part, the taxpayer may request in writing, within twenty (20)
6 days of the mailing of the decision, that the Commission revise
7 the decision of the hearing officer.
g (b) If the Commission refuses to make a revision or if the
9 taxpayer does not make a request for revision, then a final
10 assessment shall be made upon the final determination of the
11 hearing officer or the Commission.
12 (c) A taxpayer may seek relief from the final decision of
13 the hearing officer or the Commission on a final assessment of a
14 tax deficiency by following the procedure set forth in Section
15 19.
16 (d) (1) In addition to the hearing procedures set out
17 in subsections (a) -(c) of this ection, the Commission or the
18 hearing officer may hold administrative hearings by telephone,
19 video conference, or other electronic means if the Commission
20 or the hearing officer determines that conducting the hearing in
21 such a manner:
22 (i) Is in the best interest of the taxpayer and the
23 Commission;
24 (ii) Is agreed to by both parties;
Y5 (iii) Is not fiscally unsound or administratively
26 burdensome; and
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1 (iv) Adequately protects the confidentiality of the
2 taxpayer *s information.
3 (2) The Commission is authorized to contract with third
4 parties for all services necessary to conduct hearings by
5 telephone, video, or other electronic means.
6 (3) Any person who enters into a contract with the
7 Commission to provide services necessary to conduct hearings
8 by telephone, video, or other electronic means shall be subject
9 to the laws providing for the confidentiality of taxpayer
10 records.
11 Section 20. Judicial relief.
12 (a) Within thirty (30) days after the issuance and service on the
13 taxpayer of the notice and demand for payment of a deficiency in tax
14 established by (1) an audit determination that is not protested by the
15 taxpayer, or (2) a final determination of the hearing officer or the
16 Commission, a taxpayer may seek judicial relief from the final determination
17 by either:
18 (1) Within thirty (30) days of the date of the final assessment,
19 paying the entire amount of the A&P Tax due, including any interest
20 or penalties, for any taxable period or periods covered by the final
21 assessment and filing suit to recover that amount within one (1) year
22 of the date of payment. The Commission may proceed with collection
23 activities, including the filing of a certificate of indebtedness as
24 authorized hereunder, within thirty (30) days of the issuance of the
25 final assessment for any assessed but unpaid A &P Taxes, penalties, or
26 interest owed by the taxpayer for other taxable periods covered by the
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I final assessment, while the suit for refund is being pursued by the
2 taxpayer for other taxable periods covered by the final assessment; or
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(2) (A) Within thirty (30) days of the issuance and service on
the taxpayer of the notice and demand for payment, filing with
the Commission a bond in double the amount of the tax
deficiency due and by filing suit within thirty (30) days
thereafter to stay the effect of the Commission *s determination.
(B) The bond shall be subject to the condition that the
taxpayer shall file suit within thirty (30) days after filing the
bond, shall faithfully and diligently prosecute the suit to a final
determination, and shall pay any deficiency found by the court
to be due and any court cost assessed against him.
(C) A taxpayer *s failure to file suit, diligently prosecute
the suit, or pay any tax deficiency and court costs, as required
by subsection (a) of this section, shall result in the forfeiture of
the bond in the amount of the assessment and assessed court
costs.
18 (b) Jurisdiction for a suit to contest a determination of the Commission
19 under this section shall be in a circuit court in Pulaski County, where the
20 matter shall be tried de novo.
21 (c) The methods provided in this section shall be the sole alternative
22 methods for seeking relief from a written decision of the Commission or the
23 hearing officer establishing a deficiency in the A &P Tax. No injunction shall
24 issue to stay proceedings for assessment or collection of any A &P Taxes.
25 (d) In any court proceeding under this section, the prevailing party
26 may be awarded a judgment for court costs.
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I Section 21. Issuance of certificates of indebtedness and execution.
2 (a) (1) (A) If a taxpayer does not timely and properly pursue
3 his remedies seeking relief from a decision of the Commission
4 or hearing officer and a final assessment is made against the
5 taxpayer, or if the taxpayer fails to pay the deficiency assessed
6 upon notice and demand, then the Commission through its
7 authorized representatives shall, as soon as practicable
g thereafter, issue to the circuit clerk of any county of the state in
9 which the taxpayer *s business is located a certificate of
10 indebtedness certifying that the person named therein is
11 indebted to the Commission for the amount of the tax
12 established by the Commission as due.
13 (B) If a taxpayer has a delinquent A &P Tax liability to
14 the Commission of less than one thousand dollars ($1,000), the
15 Commission or its hearing officer may enter into an agreement
16 with the taxpayer to allow the taxpayer to pay the delinquency
17 in installments. The Commission or its hearing officer may
18 choose not to issue a certificate of indebtedness during the
19 period of the installment agreement if it determines that it is in
20 the best interest of the Commission.
21 (2) The circuit clerk shall enter immediately upon the circuit court
22 judgment docket:
23 (A) The name of the delinquent taxpayer;
24 (B) The amount certified as being due;
25 (C) The name of the tax; and
26 (D) The date of entry upon the judgment docket.
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1 (3) (A) The entry of the certificate of indebtedness shall have the
2 same force and effect as the entry of a judgment rendered by
3 the circuit court. This entry shall constitute the Commission *s
4 lien upon the title of any real and personal property of the
5 taxpayer in the county where the certificate of indebtedness is
6 recorded.
7 (B) This lien is in addition to any other lien existing in favor of
g the Commission to secure payment of taxes, applicable interest,
9 penalties, and costs. The lien is superior to other liens of any
10 type or character attaching to the property after the date of
11 entry of the certificate of indebtedness on the judgment docket.
12 This lien is superior to all claims of unsecured creditors.
13 (C) The certificate of indebtedness authorized by this
14 subsection shall continue in force for ten (10) years from the
is date of recording and shall automatically expire after the ten-
16 year period has run. Actions on the lien on the certificate of
17 indebtedness shall be commenced within ten (10) years after
18 the date of recording of the certificate, and not afterward.
19 (b) (1) After entry of the certificate, the circuit clerk shall issue a
20 writ of execution directed to the Commission, authorizing the
21 Commission to levy upon and against all real and personal property
22 of the taxpayer.
23 (2) The Commission shall have all remedies and may take all
24 proceedings for the collection of the tax which may be taken for the
25 recovery of a judgment at law.
26 (3) The writ shall be issued, served, and executed in the same
27 manner as provided for in the issuance and service of executions
[PACE 20 OF 25]
I rendered by the circuit courts of this state, except the Commission
2 shall act in the place of the county sheriffs.
3 (c) (1) Nothing in this chapter shall preclude the Commission from
4 resorting to any other means provided by law for collecting
5 delinquent taxes.
6 (2) The issuance of a certificate of indebtedness, entry by the
7 clerk, and levy of execution as provided in this section shall not
g constitute an election of remedies with respect to the collection of the
9 tax.
10 (3) The taxes, fees, interest, and penalties imposed or levied
11 hereby may be collected in the same way as a personal debt of the
12 taxpayer.
13 (4) The Commission may sue to the same effect and extent as
14 for the enforcement of a right of action for debt.
15 (5) All provisional remedies available in these actions are
16 available to the Commission in the enforcement of the payment of the
17 A &P Tax.
18 (d) (1) In addition to the remedies provided in subsections (b) and
19 (c) of this section, the Commission may direct the circuit clerk to issue
20 a writ of execution directed to the sheriff of any county authorizing
21 the sheriff to levy upon and against all real and personal property of
22 the taxpayer. The writ shall be issued, served, and executed in the
23 same manner as provided for in the issuance and service of executions
24 rendered by the circuit courts of this state.
25 (2) The circuit clerks and sheriffs shall be entitled to receive the
26 same fees provided by law in these matters. These fees shall be
27 collected from the taxpayer by either the Commission or the sheriff in
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I 1 1. • 0
1 addition to the tax, penalties, and interest included in the certificate of
2 indebtedness. If the sheriff is unable, after diligent effort, to collect the
3 tax, interest, penalties, and costs, the Commission may pay such fees
4 as are properly shown to be due to the clerk and sheriff.
s (e) The Commission may contract with persons inside or outside the
6 state to help the Commission collect delinquencies of resident or
7 nonresident taxpayers.
s Section 22. Injunction Proceedings. When a return required hereunder has
9 not been filed or does not furnish all the information required by the Commission
10 or when the A &P Taxes imposed by law have not been paid or when any required
11 license or permit has not been secured, the Commission mayinstitute any necessary
12 action or proceeding in a court of competent jurisdiction in Pulaski County to enjoin
13 the person or taxpayer from continuing operations until the report or return has
14 been filed, required licenses or permits secured, or taxes paid as required. The
is injunction shall be issued without a bond being required from the Commission.
16 Section 23. Settlement or compromise of liability controversies
17 (a) The Commission may enter into an agreement to compound, settle,
18 or compromise any controversy relating to the A &P Tax when:
19 (1) The controversy is over the amount of tax due; or
20 (2) The inability to pay results from the insolvency of the
21 taxpayer.
22 (b) The Commission may waive or remit the interest or penalty, or any
23 portion thereof, ordinarily accruing because of a taxpayer *s failure to
24 pay the A &P Tax within the statutory period allowed for its payment
25 (1) If the taxpayer *s failure to pay the tax is satisfactorily
26 explained to the Commission; or
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0
1 (2) If the failure results from a mistake by the taxpayer of either
2 the law or the facts subjecting him to such tax; or
3 (3) If the inability to pay the interest or penalty results from the
4 insolvency or bankruptcy of the taxpayer.
5 (c) In settling or compromising any controversy relating to the
6 liability of a person for the A &P Tax for any taxable period, the
7 Commission is authorized to enter into a written closing agreement
g concerning the liability. When the closing agreement is signed by the
9 Commission, it shall be final and conclusive, and except upon a
10 showing of fraud or misrepresentation of a material fact, no additional
11 assessment or collection shall be made by the Commission, and the
12 taxpayer shall not institute any judicial proceeding to recover such
13 liabilities as agreed to in the closing agreement.
14 (d) The Commission shall promulgate rules and regulations
15 establishing guidelines for determining whether a proposed offer in
16 compromise is adequate and is acceptable to resolve a tax dispute.
17 Section 24. Release of Property from Lien
18 (a) Upon written application by any person, the Commission may
19 release any property from the lien imposed by any assessment, order,
20 judgment, or certificate of indebtedness obtained by or from any levy
21 made by it if:
22 (1) Either full payment is made to the Commission of the sum it
23 considers adequate consideration for the release; or
24 (2) Adequate security deposit is made with the Commission to
25 secure the payment of the debt evidenced by the lien.
26 (b) When the Commission determines that its assessment,
27 certificate of indebtedness, or judgment is clouding the title of
[PACE 23 of 25]
I property because of an error in the description of properties or
2 similarity in names, the Commission may issue a release without the
3 payment of any consideration.
4 (c) The Commissions release shall be given under its seal and filed
5 in the office of the circuit clerk in the county in which the lien is filed,
6 or it shall be recorded in any office in which conveyances of real estate
7 may be recorded.
8 Section 25, Criminal Penalties. Sanctions for any taxpayer who willfully
9 attempts to evade or defeat the payment of the A &P Tax, or who assists a
10 taxpayer to evade or defeat the payment, or otherwise fails to file a report,
11 fails to pay the tax, or makes a false or fraudulent report, return, statement,
12 claim, application or other instrument required by the Commission in
13 connection with the A &P Tax, or knowingly makes a false answer to any
14 question from the Commission or its designated representative concerning
15 any A &P Tax, neglects to answer an subpoena to appear and answer
16 questions about records for the A &P Tax, or fails to obtain an A &P Tax
17 permit as required, or who acts, or fails to act, in conformance with the
18 provisions of the Arkansas Tax Procedure Act, as that Act applies to the A &P
19 Tax, shall be subject to the penalties set forth in Ark. Code Ann. §W 26 -18-
20 101 to —105; 26 -10 -201 to —212 (Michie Repl. 1997 and Supp. 1999), as they
21 exist on the date of the passage of this ordinance, or as they may be amended
22 by the General Assembly and are in effect on the date of any such violation.
23 Section 2. Severability. The provisions of this Ordinance are hereby declared to be
24 severable. If any provision shall be held to be invalid or to be inapplicable to any persons
25 or circumstances, such invalidity or inapplicability shall not affect the remainder of the
26 provisions of this Ordinance.
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i Section 3. Commencement of Enforcement. The effective date of this Ordinance
2 shall be governed by Section 5, below; however, enforcement of this Ordinance shall be
3 suspended until January 1, 2002.
4 Section 4. Repealer. All laws and parts of laws are hereby repealed to the extent of
5 such inconsistency with this ordinance.
6 Section 5. Emergency Clause. It has been found, and it is hereby declared, that the City
7 requires the revenues to be derived from the tax levied hereunder to be used by the Commission in
8 the discharge of its duties and responsibilities to the citizens of this City in accordance with state
9 law and the ordinances adopted by the City from time to time, which duties and responsibilities of
10 the Commission are essential to the continued development of the City and to the welfare of its
11 citizens. As to this Ordinance, therefore, being necessary for the preservation of the public peace,
12 health and safety, an emergency is declared to exist, and this Ordinance shall be in effect from and
13 after its passage and approval.
14 PASSED: August 7, 2001
15 ATTEST: APPROVED:
16
17
18 Na cy Woo , City Clerk Ji Dailey, Mayor
19 APPROVED AS TO LEGAL FORM:
20 A 21
22 Thomas M. Carpenter, Cit ttorney
23
24
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