§ 6-78. Collection of excise tax; bond.

(a)

There is hereby imposed an excise tax upon all alcoholic beverages purchased by persons holding a retail package license or a consumption on the premises license, at a rate set by the mayor and council.

(b)

The excise tax shall be collected by all wholesale dealers selling alcoholic beverages to persons holding retail licenses, and shall be paid by the wholesale dealers to the city clerk by the tenth of each month, based upon the units of alcohol sold during the previous month. Interest shall accrue on late payments at the rate of ten percent per annum. The wholesale dealer shall keep true and correct records of all sales and shipments. The monthly remittance shall be accompanied by a sworn statement showing, but not limited to, the type and volume of alcoholic beverages sold to each retail licensee, on a form or in a format approved by the city clerk.

(c)

Each wholesale dealer, prior to commencement of business operation in the city, shall post a performance bond with the city clerk equal to 1½ times the estimated highest monthly payment made in a calendar year of the excise tax based on sales collected by the wholesale dealer from the retailers, to secure the payment of the tax imposed in this section. These bonds shall be secured by cash, which shall bear no interest, or a surety bond executed by a surety company licensed to do business in this state and approved by the mayor and council.

(d)

A wholesaler may be excused from posting the performance bond as provided in this section after demonstrating full and satisfactory compliance with the provisions of this section for a period of 12 months subsequent to the commencement of business operations within the city. Continued exemption from the requirement of posting the performance bond shall be conditioned upon continued compliance with the terms of this article and the payment of all sums required by the provisions of this article.

(Code 1982, § 9-2-182)