§ 21-101. City tax code; adopted.

(a)

That certain document known as "The City Tax Code of the City of Glendale, Arizona," three (3) copies of which are on file in the office of the city clerk of the City of Glendale, Arizona, is hereby referred to, adopted and made a part hereof as if fully set out in this article, the provisions thereof to become effective the first day of April, 1987.

(b)

Violators shall be subject to civil and criminal penalties contained in the following sections of the tax code:

Sec. 21.1-330. Operating without a license.

It shall be unlawful for any person who is required by this chapter to obtain a privilege license to engage in or continue in business within the city without a license. The tax collector shall assess any delinquencies in tax, interest, and penalties which may apply against such person upon any transactions subject to the taxes imposed by this chapter.

Sec. 21.1-540. Interest and civil penalties.

(a)

Any taxpayer who failed to pay any of the taxes imposed by this chapter which were due or found to be due before the delinquency date shall be subject to and shall pay interest upon such tax at the rate of one percent (1%) per month, until paid. Fractions of a month shall be considered to constitute a full month for the purpose of computing interest. Said interest may be neither waived by the tax collector nor abated by the hearing officer except as it might relate to a tax abated as provided by Section 21.1-570.

(b)

In addition to any interest assessed under subsection (a) above, any taxpayer who failed to pay any of the taxes imposed by this chapter which were due or found to be due before the delinquency date shall be subject to and shall pay any or all of the following civil penalties, in addition to any other penalties prescribed by this chapter:

(1)

A taxpayer who fails to file a return for a tax imposed by this chapter shall pay a penalty of five percent (5%) of the tax for each month or fraction of a month elapsing between the delinquency date of the return and the date on which it is filed, unless the taxpayer shows that the failure is due to reasonable cause and not due to willful neglect. This penalty shall not exceed twenty-five percent (25%) of the tax due.

(2)

A taxpayer who fails to pay the tax within the time prescribed shall pay a penalty of ten percent (10%) of the unpaid tax, unless the taxpayer shows that the failure is due to reasonable cause and not due to willful neglect. If the taxpayer is also subject to a penalty under subsection (b)(1) above for the same tax period, the total penalties under subsection (b)(1) and this subsection shall not exceed twenty-five percent (25%).

(3)

A taxpayer who fails or refuses to file a return on notice and demand by the tax collector shall pay a penalty of twenty-five percent (25%) of the tax, unless the taxpayer shows that the failure is due to reasonable cause and not due to willful neglect.

(4)

If the cause of a tax deficiency is determined by the tax collector to be due to negligence, but without regard for intent to defraud, the taxpayer shall pay a penalty of ten percent (10%) of the amount of the deficiency.

(5)

If the cause of a tax deficiency is determined by the tax collector to be due to civil fraud or evasion of the tax, the taxpayer shall pay a penalty of fifty percent (50%) of the amount of deficiency.

(c)

Penalties and interest imposed by this section are due and payable upon notice by the tax collector.

(d)

The assessment of the penalties prescribed by subsections (b)(3) through (b)(5) above must be approved on a case-by-case basis by the tax collector prior to such assessment.

(e)

The tax collector may waive or adjust penalties imposed by subsections (b)(1) and (b)(2) above upon a finding that:

(1)

In the past, the taxpayer has consistently filed and paid the taxes imposed by this chapter in a timely manner; or

(2)

The amount of the penalty is greatly disproportionate to the amount of the tax; or

(3)

The failure of a taxpayer to file a return and/or pay any tax by the delinquency date was caused by any of the following circumstances which must occur prior to the delinquency date of the return in question:

(A)

The return was timely filed but was inadvertently forwarded to another taxing jurisdiction.

(B)

Erroneous or insufficient information was furnished the taxpayer by the tax collector or his employee or agent.

(C)

Death or serious illness of the taxpayer, member of his immediately family, or the preparer of the reports immediately prior to the due date.

(D)

Unavoidable absence of the taxpayer immediately prior to the due date.

(E)

Destruction, by fire for other casualty, of the taxpayer's place of business or records.

(F)

Prior to the due date, the taxpayer made application for proper forms which could not be furnished in sufficient time to permit a timely filing.

A taxpayer may also request a waiver or adjustment of penalty for a reason thought to be equally substantive to those reasons itemized above. All requests for waiver or adjustment of penalty must be in writing and shall contain all pertinent facts and other reliable and substantive evidence to support the request. In all cases, the burden of proof is upon the taxpayer.

(f)

No request for waiver of penalty under subsection (e) above may be granted unless written request for waiver is received by the tax collector within forty-five (45) days following the imposition of penalty. Any taxpayer aggrieved by the refusal to grant a waiver under subsection (e) above may appeal under the provisions of Section 21.1-570 provided that such petition of appeal is received by the tax collector within forty-five (45) days of the taxpayer's receipt of notice by the city that waiver has been denied.

(g)

For the purpose of this section, "reasonable cause" shall mean a reasonable basis for the taxpayer to believe that the tax did not apply to the business activity or the storage or use of the taxpayer's tangible personal property in this city.

Sec. 21.1-580. Criminal Penalties.

(a)

It is unlawful for any person to knowingly or willfully:

(1)

Fail or refuse to make any return required by this chapter.

(2)

Fail to remit as and when due the full amount of any tax or additional tax or penalty and interest thereon.

(3)

Make or cause to be made a false or fraudulent return.

(4)

Make or cause to be made a false or fraudulent statement in a return, in written support of a return, or to demonstrate or support entitlement to a deduction, exclusion, or credit or to entitle the person to an allocation or apportionment or receipts subject to tax.

(5)

Fail or refuse to permit any lawful examination of any book, account, record, or other memorandum by the tax collector.

(6)

Fail or refuse to remit any tax collected by such person from his customer to the tax collector before the delinquency date next following such collection.

(7)

Advertise or hold out to the public in any manner, directly or indirectly, that any tax imposed by this chapter, as provided in this chapter, is not considered as an element in the price to the consumer.

(8)

Fail or refuse to obtain a privilege license or to aid or abet another in any attempt to intentionally refuse to obtain such a license or evade the license fee.

(9)

Reproduce, forge, falsify, fraudulently obtain or secure, or aid or abet another in any attempt to reproduce, forge, falsify, or fraudulently obtain or secure, an exemption from taxes imposed by this chapter.

(b)

The violation of any provision of subsection (a) above shall constitute a class one misdemeanor.

(c)

In addition to the foregoing penalties, any person who shall knowingly swear to or verify any false or fraudulent statement, with the intent aforesaid, shall be guilty of the offense of perjury and on conviction thereof shall be punished in the manner provided by law.

(Ord. No. 1724, § 1, 6-2-92; Ord. No. 1746, § 1, 12-22-92)