(a) The burden of proof rests upon each vendor to show what part, if any, of his gross receipts from hotel room 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, room rate sheets or cards of prices per day of each room as required by Ohio R.C. 3731.16, 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 hotel lodging excise tax identical or substantially similar to the tax imposed hereby, as filed by the vendor.
(2) Secondary records such as bank deposit receipts and day books, journals, or any other records in which accumulated data by the vendor, which must be supported by complete detailed records from which such data is 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 must also clearly show the length of stay in terms of consecutive days, for each guest.
(d) All such records must 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; provided, however, that any such records need no longer be preserved after an assessment for additional tax has been made and paid, with all penalties and interest thereon, for the period involved in such assessment.
(e) All such records and documents shall be open during regular business hours in Waterville, Lucas County, Ohio subject to inspection by the Fiscal Officer who shall review, investigate, examine and audit any of such records of any vendor from time to time to determine if the proper tax has been returned and remitted. In connection with such investigation, the Fiscal Officer may interview the vendors, its agents and employees and take written statements and affidavits therefrom. The Fiscal Officer shall give the taxpayer 14 days written notice of the date, time and place of an audit of all records. If, after the investigation of such complete records reveals that any tax or additional tax should properly have been returned and remitted by the vendor, the Fiscal Officer shall make an assessment of such tax or additional tax in the manner provided in subsection (g) hereof, below, provided that if the Fiscal Officer is satisfied that the failure to return said tax or additional tax when due was caused by unintentional or immaterial error, mistake, or omission, the Fiscal Officer shall not impose the penalty.
(f) If any vendor fails to maintain complete primary sales records, accurately reflecting the total rents subject to the tax and of the tax due thereon, or which may be utilized in verifying the accuracy of the figures reflected in the secondary records and/or reported on the tax returns filed hereunder, the Fiscal Officer 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, as the facts may require, based upon any information in his/her possession.
(2) Determine taxable and non-taxable rents, or the ratio of taxable rents, or both, as the facts may require, based upon any information in his/her possession.
The above-described determinations may be based upon a sampling or test checks of that 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 the Fiscal Officer’s possession reasonably lead him/her to believe that the amount of tax required to be collected is or should be greater than the amount remitted by the vendor.
(g) If any vendor:
(1) Fails to maintain complete records, as required hereby; or
(2) Fails or refuses to permit the Fiscal Officer to inspect any records; or
(3) Refuses to permit the Fiscal Officer to sample or test check the business activity; or
(4) Having filed a return or returns, misrepresents or fails to disclose, any material fact or figure thereon; or
(5) Having collected the tax, fails to remit the same when due; or
(6) Fails to remit the correct amount of tax or interest thereon when due; or
(7) Fails to file a full and complete return when due; the Fiscal Officer shall determine the proper amount of tax by any of the means set forth herein above; the tax as so determined will be deemed to be the tax collected by such vendor during the entire period of time under review; and the Fiscal Officer shall make an assessment of such amount of tax based upon such determination, less the tax paid during such period, if any.
(h) If any vendor required to file a return fails to make and file the full and complete return within the time prescribed, a penalty of five hundred dollar ($500.00) shall be imposed.
(i) If any vendor fails to pay any amount of the tax required to be paid hereunder, by the dates prescribed for payment the vendor shall pay:
(1) An amount of interest at the rate of one percent (1%) per month, or any portion thereof, computed from the time the amount of tax should have been paid; plus
(2) A penalty of ten percent (10%) per month or any portion thereof, not to exceed fifty percent (50%) of the sum of the principal amount of tax due and required to be shown on the return, computed from the time the amount of tax should have been paid.
(j) No assessment, however, shall be made or issued against a vendor or consumer for any tax more than four years after the return day for the period in which the taxable transaction giving rise to the assessment of the tax occurred, or after the return for said period was filed, whichever is later.
(k) All returns, documents and payment 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 and the Municipality, shall be treated as confidential by the Fiscal Officer and the Municipality and shall not be released by either of them except upon order of a court of competent jurisdiction or to a duly authorized officer or agent of the Federal Government, the State of Ohio, or any municipal corporation or township in Lucas County which levies a tax pursuant to Ohio R.C. 5739.08, 5739.09 or former Ohio R.C. 5739.024(B).
(Ord. 06-11. Passed 3-28-11.)