A. If any Person, while liable for any amount under this chapter, sells, assigns or otherwise transfers half or more of a taxed Cannabis Business, whether voluntarily or involuntarily, the Person’s successor, assignee or other transferee, or other Person or entity obtaining Ownership or control of the business (“transferee”) shall pay that amount when due. A transferee shall notify the Director of Finance of a transfer 30 days before the transfer date; or if the agreement to sell, transfer, or otherwise dispose of the business is made less than 30 days before the date of transfer, on the first day the City is open for business after the transfer.

B. A transferee shall be deemed to have satisfied an unpaid liability if the transferee complies with the requirements of California Revenue and Taxation Code Section 7283.5 and this section by withholding from the purchase price, for the benefit of the City, an amount sufficient to cover the liability, or by otherwise paying the liability and obtaining from the Director of Finance a “Tax Clearance Certificate” showing that all outstanding liability has been paid through the date of transfer.

C. Within 90 days of receiving a written request from a transferee, the Director of Finance may issue a “Tax Clearance Certificate” stating either the amount due as to the business under this chapter, or stating that there is no liability due for the business through a stated date. The Director of Finance may also request financial records from the transferor to audit the amount due under this chapter. The Director of Finance shall issue a tax clearance certificate within 30 days of completing the audit, stating any amount owed, unless the Director of Finance determines the records provided for audit are insufficient to determine whether taxes, fees, penalties and/or interest are due and in what amounts. If so, the Director of Finance may rely on available information to estimate any amount due and shall issue a tax clearance certificate stating that amount. A written application for an appeal hearing on the amount assessed on a tax clearance certificate must be made within 10 days after the Director of Finance serves or mails the certificate. The appeal provision of CVMC 5.19.050 shall apply. If a timely application for a hearing is not made, the tax clearance certificate shall serve as conclusive evidence of the liability under this chapter associated with the business through the date stated on the certificate. (Ord. 3434 § 1, 2018).