§1574.1. Failure to pay tax collected from others; rule to cease business

            A. On motion in a court of competent jurisdiction, the secretary may take a rule on a taxpayer, to show cause in not less than two or more than ten days, exclusive of holidays, why the taxpayer should not be ordered to cease from further pursuit of his business for failure to pay to the state amounts collected from others by his business as sales and use tax or as withholding income tax, along with any interest, penalty, and costs related to such taxes. Such rule may be taken only for amounts due as a result of assessments or judgments which have become final and non-appealable.

            B. This rule may be tried out of term and in chambers, and shall always be tried by preference.

            C.(1) If the rule is made absolute, the order rendered thereon shall be considered a judgment in favor of the state, and the court shall enjoin and prohibit the taxpayer from the further pursuit of his business until such time as he has paid the delinquent tax, interest, penalties, and all costs or has entered into an agreement with the secretary to do so.

            (2) If the secretary files a subsequent motion with the court alleging a violation of the injunction, the court shall hold a hearing in not less than two days or more than ten days, exclusive of holidays, to determine whether such violation has occurred. Upon a showing by the secretary that there has been a violation of the injunction, the court shall consider the violation to be a contempt of the court and shall punish the violator in accordance with law, and every violation of the injunction shall be considered as a contempt of court.

            D. Whenever the pleadings filed on behalf of the secretary shall be accompanied by an affidavit of the secretary or of one of his assistants or representatives or of the attorney filing the same, that the facts as alleged are true to the best of the affiant's knowledge or belief, all of the facts alleged in the pleadings shall be accepted as prima facie true and as constituting a prima facie case, and the burden of proof to establish anything to the contrary shall rest wholly on the taxpayer.

            E. The collection procedure provided for in this Section shall be in addition to any other collection procedure provided by law. When issuing an order pursuant to this Section, the Board of Tax Appeals or any other court of competent jurisdiction, upon proper showing, may render a money judgment against the taxpayer and in favor of the collector in the amount of any final and nonappealable assessment, together with all penalties, interest, attorney fees, and costs due.

            Acts 2001, No. 202, §1, eff. July 1, 2001; Acts 2019, No. 367, §1, eff. June 18, 2019.