§ 11-2-5. COLLECTION PROCEDURE ON PURCHASE OF A HOTEL.

(A)

If a hotel owner sells a hotel, the purchaser or his assignee shall withhold an amount of the purchase price sufficient to pay the amount of tax due until the seller provides:

(1)

a receipt issued by the department showing that the amount of tax due has been paid; or

(2)

a certificate issued by the department showing that no tax is due.

(B)

A purchaser of a hotel who fails to withhold the amount of the purchase price as required by this section is liable for the unpaid tax required to be withheld to the extent of the value of the purchase price.

(C)

The purchaser of a hotel may file a written request with the department for the issuance of a certificate stating that no tax is due or for a statement of the amount required to be paid before a certificate may be issued. The department shall issue the certificate or statement not later than the 60th day after the date that the department receives the request.

(D)

If the department fails to issue the certificate or statement within the period provided by Subsection (C), the purchaser is released from the obligation to withhold the amount of tax from the purchase price or pay the amount of tax due.

Source: 1992 Code Section 5-3-3(B); Ord. 031204-10; Ord. 031211-11.