4.25.070 Exemptions from sales tax – Incorrect determination.
(a) The payor of sales tax shall make an initial determination of whether a sale is exempt from sales tax imposed under this chapter. In the event the City later determines the sale was not exempt, then the payor of sales tax is liable to the City for payment of the sales tax on the sale as if it had been collected.
(b) In the event the payor of sales tax determines a sale is not exempt, but the other party believes the transaction is exempt from sales tax, then:
(1) The party seeking exemption from sales tax shall submit payment of the sales tax to the seller; and
(2) The payment shall be accompanied by a statement of protest on a form provided by the City together with any relevant information or documentation to resolve the protest to the City no later than 30 days after the date of sale.
(c) The City Manager shall rule on each protest after consultation with the Advisory Committee composed of the City Clerk, the City Finance Director and one member of the City Council, chosen by the City Manager, and will send a notice of allowance or denial of the protest to the parties involved within 30 days of the City’s receipt of a statement of protest. If the protest is allowed, a refund will be remitted to the party who paid the tax along with that party’s copy of the notice of allowance. Interest will not be paid on refunds. A refund under a claim of exemption is not available unless the protesting party has complied with this section. The City Manager’s decision shall be final, subject to judicial review where applicable. [Ord. 19-06 § 2, 2019.]