§ 12.45.120. Penalties.

A.

A rental agency who fails to file a tax return within seven calendar days following its due date shall automatically incur a civil penalty for each tax return not filed equal to ten percent of the taxes actually due the municipality for each violation of this subsection. A rental agency who fails to remit the full amount of taxes due within seven calendar days following its due date shall automatically incur a civil penalty equal to ten percent of the taxes actually due the municipality but remaining unpaid for each violation of this subsection. If a person fails to pay the full amount of taxes due or file a tax return required under this chapter within 16 calendar days after its due date, each of the aforementioned civil penalties shall be automatically increased from ten percent to twenty-five percent.

1.

The penalty shall be computed on the unpaid balance of the tax liability as determined by the department.

2.

Notice of the penalties incurred and to be incurred shall be given to the person responsible for payment of the taxes or filing the tax return when such tax payment or tax return is delinquent for seven calendar days after its due date.

3.

The penalties provided for in this subsection shall be in addition to all other penalties and interest provided for under this chapter.

B.

A rental agency that has failed to file a tax return or remit the taxes due to the municipality by the due date for three consecutive quarters may be required by the department to file tax returns and remit taxes due at the end of each month within 30 days after the end of the month being reported. If the rental agency subsequently files tax returns and remits taxes due for 12 consecutive months without incurring penalties and interest, the Department may allow the rental agency to resume filing tax returns and remitting taxes quarterly.

C.

A rental agency or responsible party who willfully fails to collect the tax levied by this chapter shall incur a civil penalty equal to twice the amount of the tax which should have been collected.

D.

If a rental agency fails to remit at least 95 percent of the taxes due under this chapter within 45 calendar days of the due date, the rental agency shall incur a civil penalty up to and including an amount equal to the unpaid delinquent taxes.

E.

A managing member, officer, director, owner and responsible party of an enterprise engaged in business as a rental agency without a certificate of registration issued under this chapter is personally liable for all taxes which should have been collected and remitted to the municipality plus a penalty equal to 25 percent of the tax which should have been collected in addition to all costs, taxes, interest and other penalties due under this chapter. The municipal attorney may petition the court for injunctive relief against a person engaged in business as a rental agency without a certificate of registration issued under this chapter.

F.

Civil and criminal penalties shall be cumulative remedies and shall not relieve a rental agency, responsible party, or person renting a motor vehicle of the duties imposed under this chapter.

G.

Any person who violates any provision of this chapter shall be liable for a civil penalty of up to $1,000.00 for each separate violation. Where multiple instances of the same violation occur, each instance shall constitute a separate violation. In addition to any other remedy or penalty provided by this chapter, a rental agency, responsible party or any person who violates a provision of this chapter, a valid order of the department or chief fiscal officer authorized under this chapter, or a municipal regulation promulgated under this chapter, shall be subject to a civil penalty, or injunctive relief to restrain the person from continuing the violation or threat of violation, or both such civil penalty and injunctive relief. Upon application by the municipality for injunctive relief and a finding that a person is violating or threatening to violate a provision of this chapter or a municipal regulation promulgated under this chapter, the Superior Court shall grant injunctive relief to restrain the violation.

H.

A person who owns or controls the real property where an unregistered rental agency is operating and who, after being notified by the department that the continued operation of the unregistered rental agency is in violation of this chapter, allows the unregistered rental agency to continue to operate on the property is complicit in a prohibited act under section 12.45.090 and shall be subject to penalties set forth in subsection G.

I.

A person who provides advertising, web hosting, or other marketing services to a rental agency in the municipality not having a certificate of registration under this chapter after receiving notice from the department to cease such services is complicit in a prohibited act under section 12.45.090 and shall be subject to penalties set forth in subsection G.

J.

A person who commits an act prohibited by this chapter is subject to prosecution pursuant to Title 8 of this Code.

(AO No. 2000-116(S), § 3, 7-18-00; AO No. 2003-107, §§ 8, 9, 7-1-03; AO No. 2015-48, § 13, 5-14-15 )