§ 21-111. Collection; liability to seller, discontinuance of service.

(a)

It shall be the duty of every seller of telecommunications service in acting as the tax collecting medium or agency for the city to collect from the purchaser, for the use of said city, the tax hereby imposed and levied, at the time of collecting the purchase price charged for each transaction, and to report and pay over on or before the twentieth day of each calendar month, unto the director of finance of the city, all such taxes imposed, levied and collected during the preceding calendar month. In the event that the twentieth day falls on a Saturday, Sunday or holiday, the time shall be extended additionally to the next business day following the Saturday, Sunday or holiday. The date of receipt of such taxes by the city will be the date postmarked by the U.S. Postal Service, the day received by the city, or if by electronic transfer, the date received by the bank so designated to receive electronic transfers as indicated on the bank statement. The director of finance is hereby authorized to prescribe the forms on which such reports shall be made. It shall be unlawful for any seller of such telecommunications service to collect the price of any sale of such service without, at the same time, collecting the tax hereby imposed and levied in respect to such purchase and purchases. Any seller failing to collect such tax at the time of collecting the price of any purchase shall be liable to the city for the amount of such tax in like manner as if the same had been paid to the seller. When any seller shall fail to make such report or shall fail to pay such tax, within the time required hereunder, in addition to all other penalties provided herein, a specific penalty shall be added to the tax in the amount of five (5) percent if the failure is for not more than ten (10) days, with an additional five (5) for each additional ten (10) days, or fraction thereof, during the time which the failure continues, not to exceed, however, a total penalty of twenty-five (25) in the aggregate, which penalty shall be payable and collectible in the same manner as if it were a part of the tax imposed. The city shall cause to be brought all suits and actions and to take all proceedings in the name of the city as may be necessary for the recovery of such tax; provided, however, that the seller shall not be liable for the payment of such tax upon uncollected charges. If any purchaser shall fail, neglect or refuse to pay the seller the seller's charge for such purchase or purchases and the tax hereby imposed and levied and as hereby required on account of the purchase of which such charge is made or either, the seller shall have and is hereby vested with the right, power, and authority to immediately discontinue further service to such purchaser until the tax and the seller's bill shall have been paid in full.

(b)

For the purpose of compensating the seller of telecommunications service, the seller shall be allowed one (1) percent of the amount of the tax collected and due to the city in the form of a deduction from the amount collected for remittance. The deduction shall be allowed as compensation for keeping of records and collection of the tax and remitting the same.

(c)

Sellers remitting telecommunications service tax of ten thousand dollars ($10,000.00) or more, on average, per month over a period of three (3) consecutive months shall thereafter, beginning in the month immediately following the third consecutive month, make all telecommunications service tax remittances to the bank so designated to receive by electronic transfer using the ACH system or other electronic means as may be approved on a case by case basis. Those sellers meeting those criteria shall continue remittances by electronic transfer regardless of whether the seller's average collection fall below the ten-thousand-dollar threshold for any subsequent consecutive three-month period, unless approval is given by the director of finance to discontinue on a case by case basis.

All other sellers may remit by hand-delivery, U.S. Postal Service or electronic transfer. However, if a seller elects to remit by electronic transfer, that seller shall thereafter always remit by electronic transfer, unless approval is granted by the director of finance to discontinue on a case by case basis.

(Ord. No. 2000-03, 5-1-00)