§ 26-58-119 — Procedure upon failure to file reports or pay tax, filing inaccurate reports - Penalties - Subpoenas

(a) (1) In the event any producer or purchaser of natural resources or any primary processor of timber fails within the time provided for in this subchapter to file the verified reports required of them respectively, or in the event that the Secretary of the Department of Finance and Administration is not satisfied of the correctness of the reports as filed with the secretary, or in the event any such producer or purchaser of natural resources or any primary processor of timber fails to pay all taxes due as provided in §§ 26-58-114 and 26-58-116 , it shall be the duty of the secretary to ascertain the true amount and value of the natural resources or timber severed and to assess the severance tax based thereon. (2) For the purposes thereof the secretary is authorized to require either the producer or purchaser or both of them, or the primary processor, to furnish the secretary with such information, or further information, as the secretary may deem necessary and to require the production, at such place as the secretary may designate, of the books, records, and files of the producer and the purchaser or primary processor and to examine them and to take testimony of witnesses. (3) (A) The secretary shall assess a penalty equal to fifty percent (50%) of the amount of the severance tax, including the cost and expense of assessing the penalty, and shall make demand for payment of the penalty upon both the producer of natural resources and the purchaser of natural resources to the extent liability for the tax may be imposed on the purchaser under § 26-58-116 or the primary processor of timber, as the case may be. (B) The penalty assessment under subdivision (a)(3)(A) of this section shall not apply to any estimated severance tax payment that is made in good faith by a producer of natural gas or a purchaser of natural gas. (b) (1) If the producer, purchaser, or primary processor or any other such witness willfully fails to appear or to produce such books, records, and files before the secretary, in obedience to the secretary's request, the secretary shall certify the name of the reluctant producer, purchaser, primary processor, or other witness, with a statement of the circumstances to the circuit court of the county having jurisdiction over the person. (2) The court shall thereupon issue a subpoena commanding the producer, purchaser, primary processor, or other witness to appear before the secretary, at a place designated, on a day fixed, to be continued as occasion may require, and to give such evidence, and to produce for inspection such books and papers as may be required by the secretary for a proper determination of the amount of taxes due. (3) The court may hear and punish any contempt of such subpoena brought to the court's attention by the secretary.

Legislative History

Amended by Act 2019, No. 910,§ 4253, eff. 7/1/2019. Acts 1947, No. 136, § 8; 1983, No. 254, § 7; A.S.A. 1947, § 84-2108; Acts 2009, No. 145, § 4; 2011, No. 278, § 6.