Sec 5-415. Excessive gross receipts; change of license class

A. If a licensee's gross receipts exceed the limit set for the licensee's class of license, the licensee:

1. Shall immediately notify the licensing authority that the limit has been exceeded.

2. Shall submit any additional documents and meet any additional requirements for the new class of license applicable to the level of gross receipts.

3. Shall pay to the licensing authority the fee for the appropriate class of the license less the amount originally submitted for the previous class of the license.

4. Is liable for tax at the rate applicable to the new class of license and shall pay to the licensing authority the tax computed at this higher rate on the gross receipts for the expired portion of the term of the previous license less the taxes previously paid for gross receipts earned during this period.

B. The new class of license shall be issued for the remainder of the term of the previous license. At the expiration of this term the licensee may renew its new class of license or apply for another class of license if it has a good faith belief that it will qualify for the other class of license.