§ 3.20.200. Books, records and accounts.

A.

Sellers shall keep complete, adequate and accurate business records from which the city may determine sales tax liabilities. Failure to maintain such records of business transactions is evidence of intent to evade the tax and may result in penalties. A person who fails to comply with the requirements of this section may not challenge or attack in any court action or proceedings the correctness of any assessment of sales taxes based upon any period for which such books, records and invoices have not been so maintained, preserved or when requested, presented to the city.

B.

Each seller shall prepare and preserve business records in a systematic manner conforming to accepted accounting methods and procedures. Such records include:

1.

The books of account ordinarily maintained by a prudent business person. Records and accounting information stored on computers or microfilm must be provided to the city in readable form when requested by the city;

2.

Documents of original entry such as original source documents, pre-numbered sequential receipts, cash register tapes, sales journals, invoices, job orders, contracts, or other documents of original entry that support the entries in the books of accounts; and

3.

All schedules or working papers used to prepare gross and taxable sales results, including receipts or invoices showing exempt sales.

C.

Records must show:

1.

Gross receipts and amounts due from all taxable and exempt sales;

2.

All exemptions or deductions from gross sales, including the customer name and city business license or exemption certificate number and expiration date, date of transaction, receipt number and amount exempted; and

3.

The total purchase price of all goods and other property purchased for sale, resale, consumption or lease.

D.

All records that pertain to transactions involving sales tax liability shall be kept for three years following the end of the calendar year during which the transactions took place, unless the finance director grants written permission for earlier destruction. The seller shall maintain all such records at a location within the city. Records or copies of evidence presented as certification or proof of claimed sales tax exemption by the buyer are required when sales tax is not collected. If the seller is unable to provide the documentation required to validate the seller's treatment of the sale as exempt, or if the city determines that a sale was subject to tax, and the seller failed to collect the tax, the seller becomes liable for the tax, plus interest, penalties, costs and charges due the city.

E.

Amounts received with the return shall be applied in the following order:

1.

Miscellaneous costs and charges and disallowed deductions or retentions;

2.

Penalties due, beginning with the oldest penalty;

3.

Interest due, beginning with the interest due on the oldest month; and

4.

Taxes due, beginning with the taxes due from the oldest month.

(Ord. 04-10 § 2 (part), 2004).