Sec. 130-74. Unpaid tax a prior lien; exemption from lien.
(a) The tax imposed by this article, together with any interest and penalty provided for herein and any collection costs which may be incurred, shall be and, until paid, remain a first lien on all the real and tangible personal property and business fixtures of or used by any taxpayer under lease, title-retaining contract, or other contract arrangement and shall take precedence on all such property over other liens or claims of whatsoever kind or nature, except any lien for the nonpayment of the state sales and use tax, which lien for the state sales and use tax shall be superior and prior in right to the lien imposed for the city sales tax under this section.
(b) The real or personal property of an owner who has made a bona fide lease to a retailer shall be exempt from the lien created in subsection (a) of this section if such property can reasonably be identified from the lease description and if the lessee is given no right to become the owner of the property leased. This exemption shall be effective from the date of the execution of the lease if the lease is recorded with the county clerk and recorder of the county where the property is located or based or a memorandum of the lease is filed with the state department of revenue on such forms as may be prescribed by the department within ten days after the execution of the lease.
(c) Motor vehicles which are properly registered in this state, showing the lessor as owner thereof, shall be exempt from the lien created in subsection (a) of this section; except that the lien shall apply to the extent that the lessee has an earned reserve, allowance for depreciation not to exceed fair market value, or similar interest which is or may be credited to the lessee.
(d) Where the lessor and lessee are blood relatives or relatives by law or have 25 percent or more common ownership, a lease between such lessee and such lessor shall not be considered as bona fide for purposes of this section.
(e) Any coin-operated vending machine or video or other game machine shall be exempt from the lien created in subsection (a) of this section if:
(1) The machine is placed on the retailer's premises under the terms of a bona fide lease or other agreement under which the retailer is given no right to become the owner of the machine;
(2) The machine is plainly marked in a location accessible to agents of the finance director with information sufficient to permit identification of the owner of the property; and
(3) The owner of the machine has filed with the state department of revenue a schedule listing the machine by serial number and including thereon the owner's full name and the address of his or her business and such other information as the department may require. This exemption shall be effective from the date of the execution of the lease or other agreement if such schedule is filed within ten days after the execution of the lease or other agreement. (Code 1979, § 36-32; Ord. No. 2017-13, § 7, 4-3-2017; Ord. No. 2011-01, § 6, 2-14-2011)