42-1103. Enjoining delinquent taxpayer from
engaging or continuing in business


A. In order to ensure or to compel payment of taxes and to aid in enforcing this
article, the director may apply to the tax court to enjoin any delinquent taxpayer or
person who may be or may become liable for payment of any tax from engaging or continuing
in business until the person ceases to be a delinquent taxpayer or complies with other
requirements which are reasonably necessary to protect the revenues of this state and
which are prescribed by the director.


B. On application for an injunction against a delinquent taxpayer, the court may
forthwith issue an order temporarily restraining the taxpayer from doing business. The
court shall hear the matter within three days and, on a showing by a preponderance of
evidence that the taxpayer is delinquent and has been given notice of the hearing as
required by law, the court may enjoin the taxpayer from engaging or continuing in
business in this state until the taxpayer ceases to be delinquent. On issuing an
injunction, the court may also order the sheriff to seal the taxpayer's business premises
and may allow the taxpayer access to the premises only on the approval of the court.


C. On application for an injunction against a person other than a delinquent
taxpayer, the court may issue an order temporarily restraining the person from engaging
or continuing in business. The court shall hear the matter within three days and on a
showing that the person has been given notice of the hearing as required by law, that
demand has been made on the taxpayer to furnish security, that the taxpayer has not
furnished security and that the director considers the collection from the primarily
responsible person of the total amount of tax due or reasonably expected to become due to
be in jeopardy, the court may forthwith enjoin the person from engaging or continuing in
business until the person complies in full with the demand of the director for furnishing
security.


D. The court shall not issue a temporary restraining order or injunction under this
section against any person who has furnished security pursuant to section 42-1102,
42-5006 or 42-5007. On a showing to the court by any person against whom a temporary
restraining order or injunction has issued under this section that the person has
furnished such security, the court shall dissolve or set aside the temporary restraining
order or injunction.