3.38.090 Actions to collect.
(1) Debt Owed to City. Any tax required to be paid by a service user under the provisions of this chapter shall be deemed a debt owed by the service user to the city. Any such tax collected from a service user which has not been remitted to the tax administrator shall be deemed a debt owed to the city by the person required to collect and remit and shall no longer be a debt of the service user. Any person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the city for the recovery of such amount, including penalties and interest as provided for in this chapter, along with any collection costs incurred by the city as a result of the person’s noncompliance with this chapter, including, but not limited to, reasonable attorneys’ fees.
(2) Bankruptcies. Any tax required to be collected by a service supplier or owed by a service user is an unsecured priority excise tax obligation under 11 U.S.C.A. Section 507(a)(8)(C). Service suppliers who seek to collect charges for service in bankruptcy proceedings shall also include in any such claim the amount of taxes due city for those services, unless the tax administrator determines that such duty is in conflict with any federal or state law, rule, or regulation or that such action would be administratively impractical.
(a) A service supplier not required to collect taxes in connection with pursuit of claims for service charges in bankruptcy proceedings pursuant to subsection (2) of this section shall notify the tax administrator in writing within 45 days after receipt of notice that a service user has initiated bankruptcy proceedings.
(b) A service supplier who does not seek to collect charges for service in bankruptcy proceedings shall notify the tax administrator in writing within 45 days after receipt of notice that a service user has initiated bankruptcy proceedings.
(c) A service supplier who receives notice of a service user’s refusal to pay shall notify the tax administrator in writing within 45 days after receipt of such notice.
(d) A service supplier who notifies the tax administrator of an initiation of a bankruptcy proceeding or a refusal to pay under subsections (2)(a), (b), and (c) of this section shall be relieved of the duty to collect and remit any tax owed by the service user. (Ord. 608 § 1, 2009. 2002 Code § 7-7.9).