§ 40-226.7. Suspension of payment of disputed amount of tax due upon taxpayer's notice of intent to initiate judicial review.

(a)

On receipt of a notice of intent to file an application for judicial review, pursuant to section 40-227, of a determination of the tax commissioner pursuant to section 40-226.3, and upon payment of the amount of the tax that is not in dispute together with any penalty and interest then due with respect to such undisputed portion of the tax, the treasurer or other collection official shall further suspend collection activity while the court retains jurisdiction unless the court, upon appropriate motion after notice and an opportunity to be heard, determines that (i) the taxpayer's application for judicial review is frivolous, as defined in this section; (ii) collection would be jeopardized by delay, as defined in this section; or (iii) suspension of collection would cause substantial economic hardship to the locality. For purposes of determining whether substantial economic hardship to the locality would arise from a suspension of collection activity, the court shall consider the cumulative effect of then-pending appeals filed within the locality by different taxpayers that allege common claims or theories of relief.

(b)

Upon a determination that the appeal is frivolous, that collection may be jeopardized by delay, or that suspension of collection would result in substantial economic hardship to the locality, the court may require the taxpayer to pay the amount in dispute or a portion thereof, or to provide surety for payment of the amount in dispute in a form acceptable to the court.

(c)

No suspension of collection activity shall be required if the application for judicial review fails to identify with particularity the amount in dispute.

(d)

The requirement that collection activity be suspended shall cease unless an application for judicial review pursuant to section 40-227 is filed and served on the necessary parties within thirty (30) days of the service of the notice of intent to file such application.

(e)

The suspension of collection activity authorized by this subdivision shall not be applicable to any appeal of a local business tax or local mobile property tax that is initiated by the direct filing of an action pursuant to section 40-227 without prior exhaustion of the appeals provided by sections 40-226.1 and 40-226.3.

(Ord. No. 6254-06, § 1)

(Ord. No. 6254-06, § 1)