Sec. 14-407.1. Advertising—Assignment of taxes.
a. For the purpose of effectuating the assignment provisions of Section 14-407, and in order for a person subject to the tax on local advertising to qualify for a suspension of tax liability upon such gross income from local advertising when the advertiser has failed to reimburse the taxpayer for taxes due, the taxpayer must submit to the Tax Collector all of the following:
1. Sufficient evidence to indicate that the advertiser has failed or refused to pay the separately stated and billed City privilege tax in question when paying for the advertisement in question; and
2. Evidence of the amount of tax unpaid; and
3. Either of the following:
A. A properly executed written contract for the advertisement in question obligating the advertiser to reimburse the media for the separately stated City privilege tax on local advertising.
B. A published rate card, schedule, proposal, availabilities sheet, or confirmation notice which was in effect and distributed by means recognized in the industry as establishing advertising rates applicable to advertisement in question which clearly states that all billings for advertising or that the billing in question will have City privilege tax added thereto.
b. Examples of sufficient evidence to establish the amount of unpaid City tax as a deduction for this section:
1. A rate card for the advertising in question stating that City tax will be added to all billings, plus an invoice showing the City tax as a separately itemized charge to the principal amount, plus a copy of the remittance of the taxpayer paying only the principal amount and not the tax.
2. An invoice showing the City tax as a separately itemized charge to the principal amount, plus correspondence from the advertiser to the media indicating that as a matter of policy it refuses to pay any added tax on advertising.
c. Reporting requirements.
1. All taxpayers shall report "assigned taxes" as a deduction in the reporting period occurring ninety days after payment of advertising income (with nonpayment) of taxes occurs; and
2. The amount of gross income form [from] local advertising to which such to-be-assigned taxes relate must be included and reported as part of the gross receipts of the taxpayer and itemized as "assigned taxes—advertising" as a deduction from such receipts on the taxpayer’s return; and
3. The documentation required by Section 14-407 to support the claim of assignment of taxes must accompany the return claiming such assignment as a deduction. (Ord. No. G-3192, §§ 7, 8)