Types of Notices
The City Tax Division issues notices that usually require action on the part of the receiver. At any time, if you believe that a notice has been issued in error, please contact us.
Licensing Letter or Postcard
Any business activity in the City must be licensed. Through various means, the City becomes aware of unlicensed business activity and sends a letter or postcard explaining the law and how to apply for the license. The receiver must respond within ten days to avoid further action by the City.
Failure to File
Even when no tax is owed for a reporting period, the sales and use tax return must be filed. If no return is received within the grace period, a notice is generated with an arbitrarily estimated tax, penalty and interest due. Do NOT pay this amount. Instead, complete a return with the correct figures and submit it with any payment, including penalty and interest, that may be due. Remember, the vendor fee (commission) is not allowed on late returns.
If you don't know your filing schedule, please contact us for assistance.
Desk Citation or Citation to Appear
When the Tax Division receives no response regarding a notice of failure to file or a second notice to license, a citation to appear in person at the Tax Division to file tax on or before a specific date is issued. It is important to respond to a desk citation to avoid a summons to court. If it is not practical to appear personally, please contact us regarding other options.
In response to unresolved tax or licensing problems, the Tax Division issues a summons to municipal court. In addition to tax, penalty, interest and fees already assessed, a summons fee of $50 is added. A court appearance is mandatory and incurs court fees, but may be dismissed if the issue is resolved in advance. For further information please contact us.
Notice of Deficiency
A notice of deficiency is issued as a result of a sales, use or construction use tax audit; when it is found that tax was collected in the City but not remitted; or when a deduction on a return is disallowed. The process follows the same steps mentioned above, so please respond to any notice of deficiency that you receive. Any questions may be directed to audit staff.
Notice of Tax Lien
Under section 22-46 of the City code, the City has the option to place a priority tax lien on all personal and real property owned or leased by business owners when it is believed that collection of related tax revenues is compromised. As well as continued or continuous non-payment of taxes due, non-compliance with licensing may also be deemed a hazard to collection of tax revenues. The City is required to notify the business owner of the lien at the address on record with the City. Certified mail may be used but is not required. Contact us immediately to resolve a lien. An unresolved lien may result in a distraint warrant and seizure and sale of property.
Release of Lien
When the reason for a lien has been satisfactorily resolved, the lien will be released. Notification will be sent within a week to ten days. No action is required, but it is recommended that the release be permanently retained. If you have resolved a lien and do not receive notification please contact us.