4.16.330 Recordkeeping required of all sellers.
A. Every seller engaged in activity subject to this chapter shall keep and preserve suitable records of all sales made by the seller and such other books or accounts as may be necessary to determine the amount of tax which it is obliged to collect, including records of the gross daily sales, together with invoices of purchases and sales, bills of lading, bills of sale or other pertinent records and documents as will substantiate and prove the accuracy of a tax return.
B. It shall also be the duty of every seller who makes exempt sales to keep records of such sales, which shall be subject to examination by the city, or any authorized agent thereof, while engaged in checking or auditing the records of any seller required to make a report under the terms of this chapter.
C. “Suitable records of all sales made” as used in subsection A of this section shall mean at a minimum a daily “Z” or “Z-total” report or equivalent, for all businesses with a cash register (a “Z” or “Z-total” report is the report generated by the cash register at the end of each business day, which calculates, at least, the totals for each department key, total sales and total receipts – although some cash registers have more detailed “Z” or “Z-total” reports). All sales made at businesses with cash registers must be rung on the cash registers. Businesses that do not have cash registers shall use another method, such as sequentially numbered invoices or sequentially numbered cash receipt books, for recording daily sales. Summaries of invoices are suitable records of all sales made, provided that copies of all back-up invoices are preserved as required under this chapter. Whatever records are kept must reflect the total daily purchases of taxable items. If no taxable sales are made on a business day, the records kept shall so reflect “zero” sales on that day. Records must also be kept to substantiate any claimed deductions or exclusions authorized by law. Records may be written, stored on data processing equipment or may be in any form that the city may readily examine.
D. Unless a specific, written exception has been granted by the finance director, with the approval of the city manager, all sellers within the city required to provide receipts as per BMC 4.16.150(A) must have a cash register and must record each retail sale on a cash register that provides, at a minimum, a daily “Z” or “Z-total” report, or equivalent, as set forth in subsection C of this section.
E. Records shall be kept in a systematic manner conforming to accepted accounting methods and procedures. Such records include:
1. The books of accounts ordinarily maintained by a prudent businessperson. Records and accounting information stored on computers or in an electronic format must be provided to the city in a readable form when requested by the city;
2. Documents of original entry such as original source documents, prenumbered sequential source documents, prenumbered sequential receipts, cash register tapes, sales journals, invoices, job orders, contracts, or other documents of original entry that support the entries in the books of accounts;
3. All schedules or working papers used to prepare gross and taxable sales results, including receipts or invoices showing exempt sales.
F. Records must show:
1. Gross receipts and amounts due from all taxable and exempt sales; and
2. All exemptions or deductions from gross sales, as set out in BMC 4.16.160; and
3. The total purchase price of all goods and other property purchased for sale, resale, consumption, or lease.
G. Every seller shall preserve suitable records of sales for a period of three (3) years from the date of the return reporting such sales, and shall preserve for a period of three (3) years all invoices of goods and merchandise purchased for resale, and all such other books, invoices and records as may be necessary to accurately determine the amount of taxes which the seller was obliged to collect under this chapter.
H. The city finance department may examine and audit any relevant books, papers, records, returns or memoranda of any seller, may require the attendance of any seller, or any officer or employee of a seller, at a meeting or hearing, and may require production of all relevant business records, in order to determine whether the seller has complied with this chapter.
I. The burden of proving that a sale, rental or service was not taxable shall be upon the seller. [Ord. 17-39 § 2.]