(1) The tax administrator may assess the service user for taxes not paid to the service supplier.

(2) Whenever the tax administrator determines that a service user has deliberately withheld the amount of the tax owed from the amounts remitted to a service supplier, or that a service user has refused to pay the amount of tax to a service supplier, or whenever the tax administrator deems it in the best interest of the city, he or she may relieve a service supplier of the obligation to collect taxes due under this chapter from certain named service users for specified billing periods.

(3) Service suppliers shall inform the city of amounts which service users have failed to pay, along with the names, service and mailing addresses, and any reasons of the service users refusing to pay the tax imposed under this chapter of which the service supplier has knowledge. Whenever a service user has failed to pay tax for two or more consecutive billing periods, the tax administrator may relieve the service supplier of the obligation to collect taxes due pursuant to subsection (2) of this section.

(4) The tax administrator shall notify the service user that he or she has assumed responsibility to collect the taxes due for stated periods and shall demand payment of such taxes. The notice shall be served on the service user by personal delivery or by deposit in the United States mail, postage prepaid, addressed to the service user at the address to which billing was made by the service supplier or to his or her last known address. If a service user fails to remit the tax to the tax administrator within 15 days from the date of the service of the notice, which shall be deemed to be the date of mailing if personal service is not accomplished, a penalty of 25 percent of the amount of the tax set forth in the notice shall be imposed, but shall in no event be less than $5.00. The penalty shall become part of the tax herein required to be paid. (Ord. 593-P § 1, 2004; Ord. 441 § 1. 2002 Code § 7-5.15).