§ 12.45.060. Motor vehicle rental tax return and remittance.

A.

Within 30 days after the end of each calendar quarter, every rental agency shall submit to the department a tax return upon a form provided by the department and shall remit therewith all taxes required to be collected by this chapter during the immediately preceding calendar quarter. A tax return shall be filed even if there are no taxes due for the period being reported. Tax returns and taxes to be remitted under this chapter must be actually received by the department within the time required by this section.

1.

The tax return shall be signed under penalty of perjury by an officer of the rental agency and shall include:

a.

The name and mailing address of the rental agency;

b.

The name and title of the person filing the tax return;

c.

Whether the cash basis or accrual basis accounting method is used to report rents earned;

d.

The aggregate amount of the fees and costs earned by the rental agency for motor vehicle rentals within the municipality;

e.

The amount of motor vehicle tax due;

f.

The vehicle inventory disclosure form; and

g.

Such other relevant information and supporting documentation as the department may require.

2.

As used in subsection A.1.d. of this section, "fees and costs earned" means revenue recognized on the rental agency's books of account in the legitimate and normal and ordinary course of the rental agency's business. A rental agency must elect to report fees and costs on the accrual basis or the cash basis method of accounting. Once adopted, a rental agency's method of reporting fees and costs shall not be changed without prior written approval of the chief fiscal officer. Generally, cash basis businesses recognize the total fees and costs for motor vehicle rentals as earned when the payments are actually collected and accrual basis businesses recognize the total fees and costs for motor vehicle rentals as earned when the rental transactions occur regardless of when payment is actually received.

B.

If a rental agency fails to file a tax return under this section or when the chief fiscal officer finds that a tax return filed by a rental agency is not supported by the records required to be maintained under this chapter, the chief fiscal officer may prepare and file an involuntary tax return on behalf of the rental agency. Taxes due on an involuntary tax return may be premised upon any information that is available to the chief fiscal officer including comparative data for similar businesses. A rental agency shall be liable for the taxes stated on an involuntary tax return together with penalties and interest provided in this chapter.

1.

The department shall notify the rental agency of an involuntary tax return, the basis of the department's calculations, the rental agency's rights under Section 12.45.170, and notice that payment of the taxes, penalties, and interest is due immediately.

2.

Unless otherwise determined by the chief fiscal officer in a decision under Section 12.45.170, taxes due under this section shall be due on the same date as if a tax return had been filed by the rental agency in accordance with this chapter, and interest, penalties, and costs thereon shall accrue from such date.

3.

A tax return prepared by the chief fiscal officer is prima facie evidence of taxes due, and the penalties and interest accruing from said tax liability. In an application under section 12.45.170, it is the rental agency's burden to rebut the presumed sufficiency of a tax return prepared by the department.

C.

Notwithstanding anything contained in this chapter to the contrary, within ten days after ceasing to be a rental agency, the rental agency shall:

1.

Surrender its certificate of registration to the department; and

2.

Notify the chief fiscal officer in writing of:

a.

The name, telephone number, and address of any person to whom the rental agency described in the surrendered certificate of registration has been leased, conveyed, or otherwise relinquished or transferred;

b.

The date of such leasing, conveyance, relinquishment; or transfer; and

c.

The date on which the person surrendering the certificate of registration ceased doing business as a rental agency; and

3.

File a final tax return for the calendar quarter during which the rental agency ceased its business together with all taxes collected and other payments due in accordance with this chapter.

D.

It shall be the responsibility of every director and/or corporate officer of a corporation owning, operating, or controlling a rental agency registered under this chapter to ensure that timely and proper tax returns are filed and the related taxes due under this chapter are remitted to the department on behalf of the corporation. A director and/or corporate officer may be held personally liable for failing to timely:

1.

File a proper tax return; or

2.

Remit taxes due.

E.

It shall be the responsibility of every member of a limited liability company owning, operating, or controlling a rental agency registered under this chapter to ensure that timely and proper tax returns are filed and the related taxes due under this chapter are remitted to the department on behalf of the limited liability company. A member of a limited liability company may be held personally liable, to the extent provided by law, for failing to timely:

1.

File a proper tax return; or

2.

Remit taxes due.

F.

The department may require a rental agency to file tax returns and remit taxes due at the end of each month within 30 days after the end of the month being reported, if:

1.

A person who was ineligible for a certificate because of the five-year limitation in subsections 12.45.050A1.a. or A.1.b. is a responsible party for a rental agency and the five year period has passed; or

2.

A rental agency meets eligibility requirements for a certificate, but has:

a.

A debt-to-equity ratio between 7 and 9; or

b.

A debt ratio between 0.7 and 0.9.

(AO No. 2000-116(S), § 3, 7-18-00; AO No. 2003-107, § 5, 7-1-03; AO No. 2015-48, § 7, 5-14-15 )