(a) The burden of proof rests upon each vendor to show what part, if any, of its gross receipts from lodging rents are not taxable, and for such purpose each vendor shall maintain and keep complete and accurate records of rents, together with a record of the tax collected thereon, which shall include:
(1) Primary records such as all guest or rent registers, rent invoices, statements or bills, rent payments and/or refunds thereon, room rate sheets or cards of prices per day of each room as required by Section 3731.16 of the Ohio Revised Code, as amended, receipts of taxes collected, copies of the appropriate schedule of Federal income tax returns, Ohio sales tax returns and tax returns to local subdivisions having a lodging excise tax identical or substantially similar to the tax imposed hereby, as filed by the vendor, exemption certificates, tax payment receipts, cash register tapes and all other pertinent documents; and
(2) Secondary records such as bank deposit receipts and day books, journals, or any other records in which is accumulated data by the vendor, which must be supported by complete detailed records from which such data was accumulated.
(b) Guest or rent invoices, statements or bills and cash register tapes for taxable rents must have the total taxable rent and the tax charged and/or collected separately stated thereon, which amounts are to be accumulated and recorded in a secondary record.
(c) Rent invoices, statements or bills shall all clearly show the length of stay, in terms of consecutive days, for each guest.
(d) All such records shall be preserved for a period of four years unless the Fiscal Officer consents, in writing, to their destruction within that period, or by order requires that they be kept for a longer period. The four year record period for retention of records is contingent upon the vendor's timely and complete filings and payment of lodging taxes.
(e) All such records shall be open during regular business hours for inspection by the Fiscal Officer or designee, who shall review, investigate, examine and audit any such records at the Fiscal Officer's discretion. In connection with such investigation, he may interview the vendor, his agents and employees and take written statements under oath pursuant to the power conferred by Section 305.21 of the Ohio Revised Code, as amended, and the County of Summit Charter. If the investigation reveals that any tax should have been remitted by the vendor, he shall make a tax assessment in the manner provided in subsection (g) hereof, provided that the Fiscal Officer is satisfied that the failure to return such tax or additional tax when due was caused by unintentional or immaterial error, mistake or omission, he shall not impose the penalty.
(Ord. 2005-563. Adopted 11-7-05.)
(f) If any vendor fails to maintain complete primary sales records, accurately reflecting the total rents subject to the tax or which may be used to verify the accuracy of secondary records or reported on his tax returns, the Fiscal Officer, based upon any information in his possession, will use one of the following methods for such verification:
(1) Determine the total amount of all rents, less rental refunds when the full tax has also been refunded either in cash or by credit; or
(2) Determine taxable and nontaxable rents, or the ratio of taxable rents to total rents, or both.
The above described determinations may be based upon a sampling or test checks of the vendor's business activity for a representative period, or other information relating to the rental of rooms made by such vendor. The Fiscal Officer may make the same determination where the facts in his possession reasonably lead him to believe that the amount of tax required to be collected is or should be greater than the amount remitted by the vendor.
(Ord. 2005-640. Adopted 12-19-05.)
(g) (1) If any vendor engages in the following forms of bad faith conduct:
A. Fails to maintain complete records; or
B. Fails or refuses to permit the Fiscal Officer or designee to inspect any records; or
C. Refuses to permit the Fiscal Officer or designee to sample or test check his business activity; or
D. Having filed a return or returns, misrepresents or fails to disclose, any material fact or figure thereon; or
E. Fails to collect the tax, or having collected the tax, fails to remit the same when due; or
F. Fails to remit the correct amount of tax when due; or
G. Fails to file a full and complete return when due; then
(2) The Fiscal officer shall determine the proper amount of tax by any of the means set forth herein:
A. The tax shall be deemed to be the tax collected, or that should have been collected, by such vendor during the entire period of time under review; and
B. The Fiscal Officer shall make an assessment of such amount of tax and delinquency penalties based upon such determination, less the tax paid during such period, if any:
1. Plus an additional penalty of fifteen percent (15%) of the total amount of the assessment for conduct described in (g)(1)A., B., C., D., F. or G. of this section; or
2. Plus an additional penalty of fifty percent (50%) of the total amount of the assessment for conduct described in (g)(1)E. of this section.
(h) No delinquent tax, however, shall be assessed against a vendor or consumer more than four years after the return date for the period in which the taxable transaction occurred, or after the return for such period was filed, whichever is later.
(i) All returns, documents and payments submitted by each vendor, all records and other documents examined and all information or knowledge of any vendor's business obtained by the Fiscal Officer shall be treated confidentially by the Fiscal Officer and shall not be released except as required by law.
(Ord. 2005-563. Adopted 11-7-05.)