CHAPTER 23
EXAMINATIONS, RECORDS PRESERVATION, SUCCESSOR LIABILITY, AND PUBLIC DISCLOSURE
SECTION:
5-23-3: Examination Of Claims By City Officials
5-23-5: Taxpayer Quitting Business – Liability Of Successor
5-23-6: Public Disclosure – Confidentiality – Information Sharing
5-23-1 APPLICABILITY:
This Chapter applies to every Chapter in Title V of the Renton Municipal Code. In the event of a conflict between this Chapter and the specific requirements contained in some other portion of Title V, the requirements enunciated in that other portion of Title V shall prevail. (Ord. 5662, 6-4-12)
5-23-2 DEFINITIONS:
A. EXAMINATION is defined as any inspection, audit, review or evaluation of records, bills, invoices or related items for tax or fee payments, refunds, or budget concerns.
B. RECORD is defined as broadly as possible, including but not limited to files and notations, books, papers, invoices, vendor lists, inventories, stocks of merchandise, and other data including federal and state tax returns and/or regulatory reports, in electronic and other accessible, readable formats. (Ord. 5662, 6-4-12)
5-23-3 EXAMINATION OF CLAIMS BY CITY OFFICIALS:
All claims, demands, or requests for money, payment, reimbursement or refunds of any bill, tax, or invoice presented to the City shall first be examined by the appropriate administrative official. If the official determines a claim to be just, due and unpaid he or she shall so indicate to the Finance Administrator or his/her designee, and shall further indicate the fund from which payment is to be made and whether the appropriate funds are available. (Ord. 5662, 6-4-12)
5-23-4 RECORDS TO BE PRESERVED – EXAMINATION – ESTOPPEL IF RECORDS OR BUSINESS PREMISES ARE NOT PRESERVED OR MADE AVAILABLE:
A. Every tax- or fee-payer under this Title shall keep, maintain and preserve all records for eight (8) years after filing a tax return, as such records may be necessary to determine the amount of any fee or tax for which the person may be liable.
B. All records identified in subsection A of this section shall be open for examination by the Finance Administrator or his/her designee with reasonable notice. Every tax- or fee-payer’s business premises shall be open for inspection or examination by the Finance Administrator or his/her designee with reasonable notice.
C. If a tax- or fee-payer does not keep the necessary records within the City, it shall be sufficient if such tax- or fee-payer:
1. Produces within the City such records as may be required by the Finance Administrator; or
2. Bears the cost of examination by the Finance Administrator or his/her designee at the place where such records are kept; provided, that the tax- or fee-payer electing to bear such cost shall pay in advance to the City of Renton the estimated amount thereof including round-trip fare, lodging, meals and incidental expenses, subject to adjustment upon completion of the examination.
D. Any tax- or fee-payer who fails, or refuses the City’s request, to provide or make available any or all records, or to allow examination of any or all of the tax- or fee-payer’s business premises, shall be estopped from questioning in any appeal or legal proceeding the correctness of any assessment of taxes made by the City for any period for which such records have not been provided, made available or kept and preserved, or in respect of which examination of the business premises has been denied. The Finance Administrator or his/her designee is authorized to determine the amount of the tax or fees payable by obtaining facts and information upon which to base the estimate of the tax or fees due.
1. Such fee or tax assessment shall be deemed prima facie correct and shall be the amount of tax owing the City by the taxpayer; and
2. The Finance Administrator shall notify the tax- or fee-payer by mail the amount of tax so determined, together with any penalty, interest, and fees due; the total of such amounts shall thereupon become immediately due and payable. (Ord. 5662, 6-4-12)
5-23-5 TAXPAYER QUITTING BUSINESS – LIABILITY OF SUCCESSOR:
A. Whenever any taxpayer quits his or her business, sells out, exchanges, or otherwise disposes of his or her business or stock of goods, any tax payable hereunder shall become immediately due and payable. Such taxpayer shall, within ten (10) days thereafter, make a return and pay the tax due.
B. Any person who becomes a successor shall become liable for the full amount of any tax owing. The successor shall withhold from the purchase price a sum sufficient to pay any tax due to the City from the taxpayer until such time as:
1. The taxpayer shall produce a receipt from the City showing payment in full of any tax due or a certificate that no tax is due; or
2. More than six (6) months have passed since the successor notified the Finance Administrator of the acquisition and the Finance Administrator has not issued and notified the successor of an assessment.
C. Payment of the tax by the successor shall, to the extent thereof, be deemed a payment upon the purchase price. If such payment is greater in amount than the purchase price, the amount of the difference shall become a debt due such successor from the taxpayer.
D. Notwithstanding the above, if a successor gives written notice to the Finance Administrator of the acquisition, and the department does not within six (6) months of the date it received the notice issue an assessment against the taxpayer and mail a copy of that assessment to the successor, the successor shall not be liable for the tax. (Ord. 5662, 6-4-12)
5-23-6 PUBLIC DISCLOSURE – CONFIDENTIALITY – INFORMATION SHARING:
Except as hereinafter provided, it shall be unlawful for the City or any official, employee, agent, or representative to disclose any facts, information, or record contained in any return filed by any taxpayer or disclosed in any examination of the taxpayer’s records; except where such disclosure or examination is authorized or required by the Public Records Act, Chapter 42.56 RCW, as it now exists or is hereafter amended, or other state or federal law. The foregoing, however, shall not be construed to prohibit the City or any official, employee, agent or representative from:
A. Providing such facts or information as evidence in any appeal or hearing before the Hearing Examiner or in any court action involving any tax, interest or penalty imposed pursuant to this Title or involving a violation of the provisions of this Title.
B. Giving such facts and information to the taxpayer or his duly authorized agent.
C. Publishing statistics so classified as to prevent the identification of particular taxpayers or their returns or reports or items.
D. Giving such facts or information to any employee of the City, the Mayor and/or City Council, or to any City Council committee or subcommittee dealing with matters of taxation, revenue, trade, commerce, and examinations.
E. Permitting the taxpayer’s records to be examined by a City officer, agent or employee.
F. Giving such facts, information, or records to the Federal Internal Revenue Service, State Department of Revenue, and tax or law enforcement officials of any federal or state agency or municipal subdivision of this state, but only if substantially similar privileges are granted to the proper offices of the City. (Ord. 5662, 6-4-12)
5-23-7 LIMITATION ON ACTIONS:
A. An action to assess, correct an assessment, or recover monies owed or unpaid, taxes, penalties or interest shall be commenced within six (6) years.
B. Six (6) years shall mean six (6) complete calendar years prior to the commencement of an audit as signified by the written notice of audit.
C. The City may commence an action beyond the six (6) year period against any person who:
1. Has committed fraud or a material misrepresentation related to the business or profession, its operation, its employees, its revenue, its inventory or in any other material way;
2. Has waived the six (6) year limitation in writing; or
3. Has not or is not registered to operate a business in the City of Renton or has not filed a tax return as required in Title V. (Ord. 5662, 6-4-12; Ord. 5667, 6-25-12)