SEC. 21.18. DELINQUENT TAXES – INSTALLMENT PAYMENT.

(a) No registration certificate shall be issued, nor shall a suspended certificate be reinstated, to any person who, at the time of applying therefor, is indebted to the City of Los Angeles for any delinquent business, sales or use taxes, unless such person, with the consent of the Director of Finance, enters into an agreement with the City of Los Angeles, through the Director of Finance, to pay such delinquent taxes in monthly installments, or oftener, extending over a period of not to exceed one year. (Amended by Ord. No. 160,389, Eff. 10/21/85.)

(b) Persons indebted to the City of Los Angeles for delinquent business, sales or use taxes may, with the consent of the Director of Finance enter into an agreement with the City of Los Angeles, through the Director of Finance, to pay such delinquent taxes in monthly installments, or oftener, extending over a period of not to exceed one year.

(c) In any agreement so entered into, the person shall acknowledge the obligation owed to the City and agree that in the event of failure to make timely payment of any installment, the whole amount unpaid, together with accrued interest, shall become immediately due and payable; and that in the event legal action is brought by the City to enforce collection of any amount included in the agreement, the person will pay all costs of suit incurred by the City of Los Angeles, including a reasonable attorney’s fee. The execution of such a contract shall not prevent the accrual of interest on unpaid balances at the rate provided in Sec. 21.05. No penalties shall accrue on account of delinquency for taxes owed during the period covered by the contract after the execution of the contract and the payment of the first installment.

(d) Notwithstanding the provisions of Section 21.05, in any agreement entered between the effective date of this ordinance and September 30, 2021, no interest or penalty shall accrue, provided the person makes timely payments of all installments. Should the person fail to make a timely payment, interest and penalty shall accrue and be due under 21.05 as if no installment agreement had been entered. This subsection shall apply only to installment agreements entered under the authority of this section and shall not apply to any other installment agreement or payment agreement. (Added by Ord. No. 187,119, Eff. 8/7/21.)