§ 24-26. Penalties and audits.

(a)

If any person shall fail to file a report as required herein or shall fail to pay to the tax assessor-collector the tax as imposed herein when such report or payment is due, the person is liable to the municipality for:

(1)

The municipality's reasonable attorney's fees;

(2)

The costs of an audit, as determined by the municipality using a reasonable rate, but only if the tax has been delinquent for at least two (2) complete municipal fiscal quarters at the time the audit is conducted;

(3)

A penalty equal to fifteen (15) percent of the total amount of the tax owed; and

(4)

Delinquent taxes shall draw interest on a per annum basis beginning sixty (60) days from the due date at prime rate plus one (1) percent, as published in The Wall Street Journal on the first day of each calendar year that is not a Saturday, Sunday, or legal holiday.

(b)

If a person required to file a tax report under this article does not file the report as required by the municipality, the municipal attorney or other attorney acting for the municipality may determine the amount of tax due under this article by:

(1)

Conducting an audit of each hotel in relation to which the person did not file the report as required by the municipality; or

(2)

Using the tax report filed for the appropriate reporting period under Section 156.151 of the Tax Code in relation to that hotel.

(c)

If the person did not file a tax report under Section 156.151 of the Tax Code for that reporting period in relation to that hotel, the municipal attorney or other attorney acting for the municipality may estimate the amount of tax due by using the tax reports in relation to that hotel filed during the previous calendar year under this article or Section 156.151 of the Tax Code. An estimate made under this subsection is prima facie evidence of the amount of tax due for that period in relation to that hotel.

(d)

Any person violating any of the provisions of this article, including hotel operators who fail to collect the tax, fail to file a return, file a false return or who are delinquent in their tax payment, shall be guilty of a misdemeanor and shall, upon conviction, be fined in any sum not to exceed five hundred dollars ($500.00) and each twenty-four (24) hours of any such violation shall constitute a separate offense.

(Ord. No. 09-13, § 1, 12-8-2009)