71-10 Amend Chpt 128, Municipal Income Tax

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(b) Annual returns due for all or any part of the last effective year of this chapter shall be due on the date provided in Sections 128.1101 and 128.1302 as though the same were continuing. 128.2703 LIABILITY FOR NON-PAYMENT BY CONSTRUCTION CONTRACTORS, SUBCONTRACTORS, INDEPENDENT CONTRACTORS, AND OWNERS. (a) ,Any individual or entity that contracts or subcontracts, for any portion of work on a construction project in the City of Lakewood, (for purposes of this section, hereafter "the contractor', to another individual or entity for the performance of construction work ("the subcontractor', shall be liable for any failure of the subcontractor to pay or forward for payment all taxes required to be withheld or paid under provisions of this Chapter, together with applicable penalties and interest for nonpayment as provided in Section 128.1501 and 128.1502 above. It is the intention to impose liability for non-payment of taxes, and any applicable interest and penalties, upon the entire chain of construction employment and contracting, from wage worker or independent contractor up through each subcontractor, contractor, general contractor, and even to the owner, except as that owner may be exempt under subsection (b) herein, to ensure that income taxes on construction projects are paid as required. No good faith exception under Section 128.1503 shall be permitted to limit liability under this section. Issuance of an IRS Form 1099 is not a defense, but may be evidence of liability under this section. (b) Notwithstanding the foregoing, the owner or owners of residential premises and who also occupy those premises shall be exempt from liability under this section if the total cost of the project at the residence is fifty thousand dollars ($50,000)or less and the owner or owners have obtained written confirmation that the contractor employed for the project Is registered with the City of Lakewood prior to the commencement of work. (c) The City will not issue any type of building, occupancy or construction permit to any individual or entity unless first presented with documentation from the Administrator that all taxes required to be paid or withheld under this Chapter have been paid to the City. (d) The City will not release draws for work performed on any construction project undertaken by the City to any individual or entity working on such protect until presented with documentation from the Tax Administrator that all taxes required to be paid or withheld under this Chapter have been paid and forwarded to the City. Section 2. That this ordinance shall be effective January 1, 2011. Section 3. It is found and determined that all formal actions of this Council concerning and relating to the passage of this ordinance were adopted in an open