5.42.040 Deficiencies – redeterminations.
A. Every person who collects any amount under MMC 5.42.030 shall hold the same in trust for the city of McMinnville and for the payment thereof to the finance department in the manner and at the time provided in MMC 5.42.030.
B. If the finance director determines that a return is incorrect, the finance director may compute and determine or estimate the amount required to be paid based on the facts contained in the return or returns or any other information within the finance director’s possession. One or more deficiency determinations may be made on the amounts due for one or more periods.
1. In making a deficiency determination, the finance director may offset overpayments, if any, which may have been previously made for a period or periods against any deficiency for a subsequent period or periods, or against penalties, and interest on the deficiency.
2. Once a deficiency determination is made, the finance director shall serve a written deficiency notice on the marijuana retailer. The notice may be given personally or sent by United States mail. If sent by mail, the notice shall be addressed to the marijuana retailer at his/her address as it appears on the records of the city or as the city can best determine.
3. Any deficiency is due and payable 10 days after the finance director serves the written deficiency notice. If not paid by the tenth day after service of a deficiency notice, the amount shall be delinquent and penalties and interest shall be applied as established in this chapter.
4. The marijuana retailer may petition for a redetermination provided that the petition is filed within 10 days of service of the deficiency notice. Nothing prohibits the finance director from extending the time for petition beyond 10 days at his/her discretion.
5. Except as provided in this chapter, every deficiency determination shall be made and notice mailed within three years after a return was originally filed or subsequently amended, whichever period expires later. In the case of the filing of a false or fraudulent return with the intent to evade this chapter, a failure to file a required return, or a willful refusal to collect and remit the tax, a deficiency determination may be made, or a proceeding for the collection of the deficiency may be commenced at any time.
6. If the finance director believes that the collection of any tax required to be collected and paid to the city will be jeopardized by delay, or if any determination will be jeopardized by delay, the finance director may make a determination of the tax or amount of tax required to be collected. The finance director will serve a written deficiency notice and demand for immediate payment on the marijuana retailer. The amount shall be immediately due and payable, and the marijuana retailer shall immediately pay such determination to the city after service of the notice, provided, however, the marijuana retailer may petition, after payment has been made, for a redetermination of the finance director’s assessment, provided that the petition is filed within 10 days of service of the deficiency notice.
C. If a petition for redetermination, and refund is filed within the requisite time period, the finance director shall reconsider the determination, and, if the person has so requested in his/her petition shall grant the person an oral hearing and shall give him/her 10 days’ notice of the time and place of the hearing. The finance director may continue the hearing from time to time as necessary. (Ord. 5004, 2016).