The Tax Administrator and his duly authorized agent are empowered to examine and audit the books, papers and records of any licensee or person operating a transient lodging rental business and to make investigations in connection therewith. Audits will cover a three (3) year period. The audit will be conducted at no expense to the licensee.
A. Required Records: Each licensee is required to maintain daily records which support amounts reported on the Operator's Transient Lodging Tax Returns. These daily records shall include, without limitation, the following information:
1. Total rooms available and occupied.
2. Total daily gross room receipts.
3. Total amount of Transient Lodging Tax collected.
4. Number of rooms, spaces or other accommodations provided for no compensation.
5. Contract, lease, Transient Occupancy Tax 28-Day Exemption Forms or rental agreement.
6. Government Agency Exemption Claim Forms.
7. Any and all documentation used to complete the Operator's Transient Lodging Tax Return, to include all documents that support the calculations shown on the return.
An acceptable record retention practice includes maintaining bound receipt books, guest folios, registration cards, daily transaction reports, general ledgers, cash journals, register and/or computer printouts, computerized records, and any other books and records deemed reasonably necessary to support all information supplied to the City as required by this chapter. Licensees shall retain and provide all documents that support revenues and exemptions reported to the City.
B. Retention Of Records: Every licensee shall keep all records which must be maintained pursuant to this section for a period of not less than four (4) years from the close of the accounting year to which the returns relate.
C. Availability Of Records: Upon written notification of a Transient Lodging Tax audit, the licensee shall provide the City or City auditors with all records supporting the Transient Lodging Tax returns filed with the City of Elko during the audit period. These records shall be made available to the City or City auditors at the transient lodging rental business or the offices of the City of Elko within ten (10) business days of the date the notice is sent, unless other arrangements are made with the City of Elko.
If the Transient Lodging Tax audit is conducted at the transient lodging rental business, the licensee shall provide reasonable accommodations to the City auditors. The City auditors may be City employees or independent contractors acting on the City's behalf.
Auditors may make copies of all original records reviewed in the course of conducting the audit. Auditors may request copies of records which must be provided by the licensee either through copy, e-mail, CD or flash drive to be retained as part of the audit work papers which substantiate the audit findings.
Failure of a licensee to retain or refusal of a licensee to furnish any such records required to be maintained pursuant to this section may provide grounds for the assessment of a deficiency in the payment of the Transient Lodging Tax for the period that is subject to the audit. The City may utilize any available data or other information to calculate the correct Transient Lodging Tax for the period being audited.
D. Failure To Cooperate With A Transient Lodging Tax Audit: Upon determination by the City Clerk that a licensee is failing to cooperate with an auditor conducting an audit of Transient Lodging Tax returns pursuant to this section, the City Council may terminate, suspend or revoke the licensee's business license pursuant to section 4-1-14 of this title. Failing to cooperate, as that term is used in this subsection, includes refusing to provide sufficient information to the auditor in order to conduct the audit.
E. Notice of Audit Determination: Following the completion of an audit pursuant to this section, the City will provide a written determination of the audit results to the licensee. The foregoing notice may be served personally, by certified mail, and/or e-mail.
F. Time Limitation: If the City Clerk assesses an additional amount for underpayment or nonpayment of Transient Lodging Tax, the licensee has thirty (30) calendar days in which to pay the assessed amount and/or file a written notice appeal of the findings with the City Clerk.
G. Appeals: Appeals of an assessment by the City Clerk pursuant to this subsection shall be placed on a City Council agenda for consideration no later than sixty (60) days from the date the notice of appeal is filed with the City Clerk. The decision of the City Council to uphold the assessment, in whole or in part, shall be deemed a final decision for purposes of judicial review. The licensee shall thereafter have thirty (30) calendar days in which to file a petition for judicial review with the Fourth Judicial District Court in and for the County of Elko, State of Nevada.
Should the City Clerk determine that a credit for overpayment of a Transient Lodging Tax is due, the credit will be refunded to the licensee within thirty (30) calendar days from the date of the determination. (Ord. 828, 5-8-2018, eff. 7-1-2018; amd, Ord. 875, 1-24-2023)