§ 54-38. Audit of records.

(a)

Audit of taxpayer business records . The finance director has the authority to audit, upon reasonable notice, the business records of any taxpayer licenses to engage in business within the city. If the finance director provides written notice of an audit to the taxpayer prior to the expiration of the 36-month statute of limitations, such limitation period shall be extended until conclusion of the audit.

(b)

Place of audit . All books, accounts and records of a taxpayer shall be open for examination at any time by the finance director. If a taxpayer keeps or maintains such person's books, accounts and other records or any portion thereof outside the state, upon demand by the finance director, such person shall make such books, accounts and other records available at a suitable place within the state, to be designated by the finance director, for examination, inspection and audit by the finance director. The finance director, in his/her sole discretion, may make, permit or cause to be made the examination, inspection or audit of books, accounts and other records kept or maintained by a taxpayer outside the state at the place where such books, accounts and records are kept or maintained, provided that the taxpayer shall have entered into a binding agreement with the city to reimburse the city for all costs and expenses incurred by the city in order to have such examination, inspection or audit made in such place. The finance director may permit limited scope auditing of a taxpayer's records by mail. Such a determination is solely within the discretion of the finance director.

(c)

Performance of audit not to limit or preclude additional audits . Performance of an audit does not constitute waiver of the statute of limitations or preclude additional audits of the same period.

(d)

Third-party recordkeepers . Any third-party recordkeeper shall have all of the rights, duties and obligations of a taxpayer, retailer or vendor solely as the same relates to the record keeping and record disclosing obligations imposed upon taxpayers, retailers or vendors. However, the city shall attempt to obtain any records or reports from the taxpayer, retailer or vendor prior to its attempts to obtain such records from third-party recordkeepers, and in any event such attempts to obtain records or reports shall only be undertaken after providing notice to the taxpayer, retailer or vendor. Notwithstanding the foregoing, a third-party recordkeeper shall be deemed a taxpayer for all purposes and shall be subject to all of the provisions of this article relating to any and all taxable transactions engaged in by such third-party recordkeeper.

(e)

Coordinated audit.

(1)

Any taxpayer licensed in the city, and holding a similar sales tax license in at least four other state municipalities that administer their own sales tax collection, may request a coordinated audit as provided herein.

(2)

Within 14 days of receipt of notice of an intended audit by any municipality that administers its own sales tax collection, the taxpayer may provide to the finance director, by certified mail, return receipt requested, a written request for a coordinated audit indicating the municipality from which the notice of intended audit was received and the name of the official who issued such notice. Such request shall include a list of those state municipalities utilizing local collection of sales tax in which the taxpayer holds a current sales tax license and a declaration that the taxpayer will sign a waiver of any time limitation upon the city's right to recover tax owed by the vendor for the audit period.

(3)

Except as provided in subsection (e)(6) of this section, any taxpayer who submits a complete request for a coordinated audit and promptly signs a waiver of the time limits as set forth herein may be audited by the city during the 12 months after such request is submitted only through a coordinated audit involving all municipalities electing to participate in such an audit.

(4)

If the city desires to participate in the audit of a taxpayer that submits a complete request for a coordinated audit pursuant to subsection (e)(3) of this section, the finance director shall so notify the finance director of the municipality whose notice of audit promoted the taxpayer's request within ten days after receipt of the taxpayer's request for a coordinated audit. The finance director shall then cooperate with other participating municipalities in the development of arrangements for the coordinated audit including, by illustration, arrangement of the time during which the coordinated audit will be conducted, the period of time to be covered by the audit, and a coordinated notice to the taxpayer of those records most likely to be required for completion of the coordinated audit.

(5)

If the taxpayer's request for a coordinated audit is in response to a notice of audit issued by the city, the finance director shall facilitate arrangements between the city and other municipalities participating in the coordinated audit unless and until an official from some other participating municipality agrees to assume this responsibility. The finance director shall cooperate with other participating municipalities to, whenever practicable, minimize the number of auditors that will be present on the taxpayer's premises to conduct the coordinated audit on behalf of the participating municipalities. Information obtained by or on behalf of those municipalities participating in the coordinated audit may be shared only among such participating municipalities.

(6)

If the taxpayer's request for a coordinated audit is in response to a notice of audit issued by the city, the finance director shall, after arrangements for the coordinated audit between the city and other participating municipalities are completed, provide written notice to the taxpayer of which municipalities shall be participating, the period to be audited and the records most likely to be required by participating municipalities for completion of the coordinated audit. The finance director shall also propose a schedule for the coordinated audit.

(7)

The coordinated audit procedure in this section shall not apply:

a.

When the proposed audit is a jeopardy audit;

b.

To audits for which a notice of audit was given prior to the effective date of the ordinance from which this article is derived;

c.

When a taxpayer refuses to promptly sign a waiver of the time limitations; or

d.

When a taxpayer fails to provide a timely and complete request for a coordinated audit.

(Code 1985, § 3-3-100; Ord. No. 07-02, § 2, 3-6-2007)