§ 64-16.610. Audit, assessment, and deficiency determination.

(a)

The treasurer-tax collector or designee is authorized to audit and examine all books and records of commercial cannabis activities and of persons having ownership or control of commercial cannabis activities, including state and federal income tax returns, state sales tax returns, bank records, permits, accounting records, employment records, evidence documenting the gross receipts of the cannabis business, and goods and equipment used in the commercial cannabis activity, for the purpose of ascertaining the amount of gross receipts and the amount of cannabis business tax due and for the purpose of verifying the accuracy of any forms submitted to the treasurer-tax collector. If the commercial cannabis activity refuses or fails to make available all requested materials, the treasurer-tax collector may, after full consideration of all information within his or her knowledge concerning the commercial cannabis activity, issue a notice assessment of cannabis business tax due. The treasurer-tax collector may collect a fee adopted by the board of supervisors to pay for the cost of an audit if the books and records provided were insufficient to allow the treasurer-tax collector to accurately determine the amount of cannabis business tax due.

(b)

The treasurer-tax collector may issue a notice of assessment of the amount of cannabis business tax, penalties and interest owed by a person at any time within three years after the due date if the person:

(1)

Has not correctly computed the amount of cannabis tax due;

(2)

Has not filed a complete cannabis business tax statement;

(3)

Has not paid the cannabis business tax, penalties, and interest due;

(4)

Has not filed a corrected cannabis business tax statement after demand by the treasurer-tax collector; or

(5)

Has not provided adequate substantiation of the information contained in the cannabis business tax statement after demand by the treasurer-tax collector.

(c)

If the treasurer-tax collector determines that the nonpayment of any cannabis business tax is due to fraud, a penalty shall be imposed that is equal to twenty-five percent of the amount of the cannabis business tax owed for the period in which the amount of tax due was underreported. This penalty is in addition to interest and penalties assessed for delinquent taxes.

(d)

A person who disputes the amount of cannabis business tax, penalties, and interest assessed may request a hearing pursuant to section 64-16.612 by filing a written request for hearing with the treasurer-tax collector within fifteen days after the notice of assessment.

(Ord. No. 2018-22, § I, 11-6-18)