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to the collector that the successor was notified of the requirements of this Article regarding their
<br />responsibility for unpaid business license tax liabilities.
<br />(b) Remitting and reporting requirements. Each commercial cannabis business owner/operator upon the sale,
<br />assignment, or other transfer, or termination of business for any reason shall, on or before the last day of the
<br />month following the sale, assignment, transfer, or termination of business, file a final return to the collector
<br />on City approved forms, of the total gross receipts received, adjustments to gross receipts, the amount of
<br />business license tax collected for the reporting period, remittances made, if any, and the balance of the
<br />business license tax due, if any, shall be remitted to the collector.
<br />(c) Closeout audit. After filing the final return and remitting the balance due, the commercial cannabis business
<br />owner/operator shall make its records of account available for a closeout audit by the collector, his or her
<br />revenue officers, or duly authorized employees or agents of the City. The decision to perform a closeout
<br />audit shall be made solely at the discretion of the collector. If, upon closeout audit, or by means of other
<br />information available to them, the collector determines that the owner/operator selling, assigning, or
<br />otherwise transferring, or terminating their business is found to have satisfied all business license tax
<br />liabilities, the collector shall issue to such business owner/operator a certificate of nonliability.
<br />If, upon closeout audit, or by means of other information available to them, the collector determines that the
<br />owner/operator selling, assigning, or otherwise transferring, or terminating their business is deficient in either
<br />their return or remittance, or both, the collector shall immediately notify such owner/operator of the amount of
<br />the net deficiency, plus applicable penalties, interest, charges, fees, or costs. Upon such owner/operator's
<br />remittance of all business license tax liabilities owing, the collector shall issue a certificate of nonliability.
<br />(d) Successor's duty to notify. If a commercial cannabis business owner/operator decides to sell, assign, or
<br />otherwise transfer their business, their successor shall notify the collector of the date of the sale,
<br />assignment, or other transfer at least ninety (90) days before the date of the sale, assignment, or transfer. It
<br />shall be the duty of the successor to obtain written verification from the collector's office that the transferor
<br />does not have or is not liable for any outstanding business license taxes liabilities. After the successor seeks
<br />written verification from the collector's office, if the collector notifies the successor that the transferor has or
<br />is liable for any outstanding amount of business license tax liabilities, the successor shall withhold an amount
<br />equal to such outstanding business license tax liabilities until the transferor produces a certificate of
<br />nonliability stating the nonliability of the transferor for payment of business license tax liabilities. If the
<br />transferor does not present a certificate of nonliability within ninety (90) days after such sale, assignment, or
<br />other transfer, the successor shall deposit the withheld amount with the collector pending settlement of the
<br />account of the transferor.
<br />If the decision to sell, assign, or otherwise transfer was made within less than a ninety (90) day period prior to the
<br />date of the sale, assignment, or other transfer, the successor shall notify the collector of the sale, assignment, or
<br />transfer immediately and shall withhold an amount equal to the sum of the transferor's last three (3) months' of
<br />reported and remitted business license taxes until the transferor produces a certificate of nonliability stating the
<br />nonliability of the transferor for payment of business license tax liabilities. If the transferor does not present a
<br />certificate of nonliability within ninety (90) days after such sale, assignment or other transfer, the successor shall
<br />deposit the withheld amount with the collector pending settlement of the account of the transferor.
<br />(e) Joint and several liability. If the successor fails to withhold the applicable amount required under subsection
<br />(d) they shall become jointly and severally liable along with the transferor for the payment of the full amount
<br />of the transferor's business license tax liabilities and shall likewise become jointly and severally liable along
<br />with the transferor for future penalties and/or interest charges as may be applicable as set forth in sections
<br />21-83, 21-84, and 21-85 until all business license tax liabilities are satisfied.
<br />(f) Certificate of nonliability. Upon application of a commercial cannabis business owner/operator who is
<br />terminating their business, or a transferor, or a successor, for a certificate of nonliability, the collector, after
<br />conducting an audit therefore, as he or she may deem necessary, shall issue the certificate of nonliability if
<br />City of Santa Ana RFP No. 23-165 Page 152 of 196
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