§337.33. Failure to pay tax; rule to cease business
A.
(1)On motion in a court of competent jurisdiction, the collector may take a rule
on a taxpayer, to show cause in not less than two or more than ten days, exclusive of
holidays, why the taxpayer should not be ordered to cease from further pursuit of his business
for failure to pay to the taxing authority amounts collected from others by his business as
sales and use tax, along with any interest, penalty, and costs related to such tax. Such rule
may be taken only for amounts due as a result of assessments or judgments which have
become final and nonappealable or for amounts shown to have been actually collected from
others and not remitted to the collector.
(2)This rule may be tried out of term and in chambers, and shall always be tried
Free access — add to your briefcase to read the full text and ask questions with AI
§337.33. Failure to pay tax; rule to cease business
A.(1) On motion in a court of competent jurisdiction, the collector may take a rule
on a taxpayer, to show cause in not less than two or more than ten days, exclusive of
holidays, why the taxpayer should not be ordered to cease from further pursuit of his business
for failure to pay to the taxing authority amounts collected from others by his business as
sales and use tax, along with any interest, penalty, and costs related to such tax. Such rule
may be taken only for amounts due as a result of assessments or judgments which have
become final and nonappealable or for amounts shown to have been actually collected from
others and not remitted to the collector.
(2) This rule may be tried out of term and in chambers, and shall always be tried by
preference.
(3)(a) If the rule is made absolute, the order rendered thereon shall be considered a
judgment in favor of the taxing authority, and the court shall enjoin and prohibit the taxpayer
from the further pursuit of his business until such time as he has paid the delinquent tax,
interest, penalties, and all costs or has entered into an agreement with the collector to do so.
(b) If the collector files a subsequent motion with the court alleging a violation of
the injunction, the court shall hold a hearing in not less than two days or more than ten days,
exclusive of holidays, to determine whether such violation has occurred. Upon a showing
by the collector that there has been a violation of the injunction, the court shall consider the
violation to be a contempt of the court and shall punish the violator in accordance with law,
and every violation of the injunction shall be considered as a contempt of court.
(4) Whenever the pleadings filed on behalf of the collector shall be accompanied by
an affidavit of the collector or of one of his assistants or representatives or of the attorney
filing the same, that the facts as alleged are true to the best of the affiant's knowledge or
belief, all of the facts alleged in the pleadings shall be accepted as prima facie true and as
constituting a prima facie case, and the burden of proof to establish anything to the contrary
shall rest wholly on the taxpayer.
(5) The collection procedure provided for in this Subsection shall be in addition to
any other collection procedure provided by law. When issuing an order pursuant to this
Subsection, the Board of Tax Appeals or any court of competent jurisdiction, upon proper
showing, may also render a money judgment against the taxpayer and in favor of the
collector in the amount of any final and nonappealable assessment or other amount shown
to have been actually collected from others and not remitted to the collector, together with
all penalties, interest, attorney fees and costs due.
B. Failure to pay any tax due as provided in the local ordinance shall, without
demand or putting in default, cause the tax, interest, penalties, and costs to become
immediately delinquent and the collector has the authority, on motion in a court of competent
jurisdiction, to take a rule on such person, to show cause in not less than two or more than
ten days, exclusive of holidays, why such person should not be ordered to cease from further
pursuit of business. This rule may be tried out of term and in chambers and shall always be
tried by preference. If the rule is made absolute, the order rendered thereon shall be
considered a judgment in favor of the taxing authority, prohibiting the person from the
further pursuit of said business until he has paid the delinquent tax, interest, penalties, and
costs, and every violation of the injunction shall be considered as a contempt of court and
punished according to law.
C. For the purpose of the enforcement of the local ordinance and the collection of
the tax levied therein, it is presumed that all tangible personal property imported or held in
the taxing jurisdiction by any dealer is to be sold at retail, used or consumed, or stored for
use or consumption in the taxing jurisdiction, or leased or rented within the taxing
jurisdiction, and is subject to the tax herein levied. This presumption shall be prima facie
only, and subject to proof furnished to the collector.
D. The provisions of this Section shall not apply if the person has entered into an
installment agreement for the payment of delinquent taxes with the collector and is in
compliance with the terms of the agreement.
E. Neither the collector's consent to a continuance request nor the collector's failure
to object to the date that any court or the Board of Tax Appeals sets for the hearing date of
a rule brought pursuant to the provisions of this Section shall be considered a waiver of the
collector's right to proceed pursuant to the provisions of this Section nor be deemed to
convert a summary proceeding into an ordinary proceeding.