§ 12.45.150. Maintenance and inspection of documents and records.

A.

Motor vehicle rental transactions. Any person who collects fees and costs for the rental of a motor vehicle shall keep and preserve sufficient records to document each rental of a motor vehicle. The collection of advance deposits constitutes the collection of fees and costs for the purposes of this subsection. Unless a longer period is ordered by the chief financial officer under section 12.45.100 or a court of competent jurisdiction, a rental agency shall keep and preserve all required records within the municipality for not less than two calendar years after the end of the calendar year in which such records are created and shall make available such records for inspection by the department upon request. Sufficient records shall include, but not necessarily be limited to:

1.

All rental contracts and accounting records reflecting the rental of each motor vehicle for which the rental agency received fees and costs, and the total fees and costs received therefor;

2.

The renter's name, address, beginning and ending dates of the rental period, motor vehicle identification number (VIN#) or license plate number, and all fees and costs charged to the renter, method of payment, and payment amount, as recorded on the rental contract or otherwise; and

3.

All periodic statements and records from financial institutions provided to, or available to, the rental agency for accounts in which fees and costs or motor vehicle rental taxes were deposited;

4.

All periodic statements provided to the rental agency from credit card or debit card processors containing details of customer payment transactions for motor vehicle fees and costs or motor vehicle rental taxes; and

5.

Books of account, journals, ledgers, and other compilations of source documents that reconcile to total fees and costs earned and tax collected as listed on the tax returns filed with the department under the authority of this chapter.

B.

Tax-exempt transactions. It shall be the responsibility of each rental agency to obtain and preserve sufficient evidence to support all claimed exemptions from payment, collection, or remittance of the rental vehicle tax. Specification in this subsection of the records to be kept by a rental agency shall not relieve the rental agency of its responsibility to keep sufficient records. Unless a longer period is ordered by the chief financial officer under section 12.45.100 or a court of competent jurisdiction, a rental agency shall keep and preserve in the municipality at least the following minimum records for two calendar years after the end of the calendar year in which created:

1.

All the information and records required under subsection A. of this section;

2.

A record of the method of payment in cases where an exemption is claimed for a motor vehicle rental;

3.

In the case of a claimed foreign government employee exemption as provided in this chapter, a copy of the identification card issued by the United States Department of State, which shall be attached to the rental contract or otherwise cross-referenced to that rental contract;

4.

Evidence which demonstrates fees and costs "paid directly," such as copies of documents, copies of bills, invoices, purchase orders, treasury warrants, or other payment arrangement made directly between the rental agency and the person or entity by which the fees and costs were "paid directly." A rental agency shall cross-reference the appropriate rental contract with the evidence of direct payment which qualifies for an exemption by attaching a copy of the supporting evidence to the rental contract or by reciprocal notations on the affected rental contract and on the evidence supporting such an exemption;

5.

Such other records, documents, and information as the department may require by regulation or notice to the rental agency as reasonably necessary and convenient to its administration and enforcement of this chapter.

C.

Fleet inventory. It shall be the responsibility of the rental agency to obtain and preserve sufficient information on the motor vehicles the rental agency controls or offers for rent to enable the department to perform inspections of records pursuant to this chapter. Specification in this chapter of the records to be kept by a rental agency shall not relieve the rental agency of its responsibility to keep sufficient records. Unless a longer period is ordered by the chief financial officer under section 12.45.100 or a court of competent jurisdiction, a rental agency shall keep and preserve in the municipality at least the following minimum records for two calendar years after the end of the calendar year in which created:

1.

For motor vehicles owned by the rental agency, the vehicle registration and title documents issued by the State of Alaska Department of Motor Vehicles. If the motor vehicle has been sold or otherwise transferred to another person, then copies of the vehicle registration and title documents as well as documents or records reflecting the date of the sale or transfer shall be retained.

2.

For motor vehicles controlled but not owned by the rental agency, all documents and accounting records which reflect the rental agency's authority to rent or lease a motor vehicle on behalf of the registered owner of the motor vehicle. These records include but are not limited to the following:

a.

Name, physical address, mailing address (if different), and phone numbers of the registered owner of the motor vehicle;

b.

Identification of the motor vehicle, such as a record of the license plate number and the state which issued the license plate;

c.

Rental contract, lease agreement, or similar documents of a contractual nature between the registered owner of the motor vehicle and the rental agency reflecting the agency's authority to offer the motor vehicle for rent and the contracted period of time for which the rental agency has the authority to offer the motor vehicle for rent;

d.

Documents and records reflecting any periods of time when the motor vehicle is not available for rent by the rental agency due to the registered owner's personal use of the motor vehicle;

e.

Documents and records reflecting the total fees and costs collected by the rental agency and the amounts subsequently paid to the registered owner of the motor vehicle, including any deductions for items including but not limited to maintenance, repairs, and commission charges.

D.

Rental agency financial and administrative records. Unless a longer period is ordered by the chief financial officer under section 12.45.100 or a court of competent jurisdiction, a rental agency shall keep and preserve in the municipality at least the following minimum records for two calendar years after the end of the calendar year in which created:

1.

Sufficient documentation confirming eligibility under section 12.45.045; and

2.

Any financial document related to the rental agency that has been submitted to a financial institution, potential investor, or other potential source of financing.

E.

Persons subject to this chapter shall keep and preserve such other documents and records as the department prescribes.

F.

During normal business hours, the chief fiscal officer, upon presentation of proper identification, may inspect the records which a rental agency is required to maintain under this section, or inspect the records of a person whom the chief fiscal officer has probable cause to believe is a rental agency in order to determine whether that person is a rental agency. Upon notice of the department's intent to inspect records, a person or rental agency shall retain such records and preserve their availability to the department until released by the department in writing, regardless of whether such retention and preservation continues beyond the two-year period specified in this section.

1.

The chief fiscal officer's authority to inspect records shall not be limited to records within the two calendar year retention period. If a rental agency has possession or control of records described in subsections A. through E. that are older than the two-year period specified in this section, the rental agency shall make such records available for inspection upon request.

2.

The rental agency shall make available for inspection within the municipality, all records required to be kept and preserved by this chapter. Records older than the two calendar year retention period specified in this section shall not be barred from discovery under court or administrative rules on relevance or admissibility grounds solely based on the age of the records.

G.

The department may inspect records required by this chapter of all responsible parties who had control of, or access to, funds collected from customers of the rental agency, and such persons shall be subject the requirements of this section.

H.

Where the Constitution of the United States or of the State of Alaska so requires, the chief fiscal officer shall obtain an administrative search warrant authorizing an inspection and shall exhibit the warrant to the person in charge of the premises before conducting the inspection. The chief fiscal officer shall apply to the trial courts of the State of Alaska to obtain an administrative search warrant, stating in the application the name and address of the premises to be inspected, the authority to conduct the inspection, the nature and extent of the inspection, and the facts and circumstances justifying the inspection. Warrants issued under this section shall be returned to the court by which issued within ten days after the date issued.

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