Section R17-4-350. Rental Vehicle Surcharge Reimbursement

A.      Definitions. In addition to the definitions prescribed under

A.R.S. § 28-5810, the following terms apply to this Section, unless otherwise specified:

“Person” means an individual, a sole proprietorship, firm, partnership, joint venture, association, corporation, lim- ited liability company, limited liability partnership, estate, trust, business trust, receiver or syndicate, this state, any county, city, town, district or other subdivision of this state, an Indian tribe, or any other group or combi- nation acting as a unit.

“Previous year” means the prior calendar year, January 1 through December 31.

“Rental revenue” means the total contract amount stated in the retail contract less any taxes and fees imposed by

A.R.S. Title 42, Chapter 5, Article 1, A.R.S. Title 48, Chapter 26, Article 2, and selected non-vehicle related charges, including boxes, packing blankets, straps, and tow bars.

“Surcharge” means the amount equal to five percent of the total contract amount stated in the rental contract less any taxes and fees imposed by A.R.S. Title 42, Chapter 5, Article 1, A.R.S. Title 48, Chapter 26, Article 2, and selected non-vehicle related items, including boxes, pack- ing blankets, straps, and tow bars.

“Vehicle License Tax” means the tax imposed by A.R.S.

§ 28-5801, less any tax credited under A.R.S. § 28-2356.

B.       Reports. Each person subject to A.R.S. § 28-5810, who has conducted a vehicle rental business for any time period during the previous year, shall file an annual report, for the previous year, with the Department. The annual report is due no later than February 15 of each year, unless the rental business is closed before December 31, in which case the annual report is due immediately. The report shall be made on a form furnished by the Department and shall contain all of the following:

1.        Address where business records are secured;

2.        Name, title, phone number, and signature of the person authorized to sign the form;

3.        Business name;

4.        Business type, including sole proprietorship, partnership, corporation, limited liability company, and limited liabil- ity partnership;

5.        Name, title, phone number, mailing address, and e-mail address of the contact person;

6.        Federal Employer Identification Number (FEIN);

7.        Mailing  address   (if  different  from  principal   business address);

8.        Principal business address;

9.        Rental vehicle revenue collected, by county;

10.     Total Arizona Vehicle License Tax paid on rental vehi- cles;

11.     Total rental vehicle revenue collected;

12.     Total surcharge collected;

13.     Total surcharge due to the Department; and

14.     Type of rental business, including passenger vehicle, semitrailer, trailer, truck, motorcycle, moped, and recre- ational vehicle.

C.      Records. A person in the business of renting vehicles, as defined under A.R.S. § 28-5810, is required to maintain records in support of the required annual reports for a period of four years after the date of the filing of the required annual report or the due date of the report, whichever is longer. The records shall contain all information in support of:

1.        The total amount of Vehicle License Tax paid during the previous year. Supporting Vehicle License Tax records for each rental vehicle shall include:

a.         The Vehicle Identification Number,

b.        The Arizona vehicle license plate number,

c.         A copy of the Arizona registration,

d.        The amount paid for Vehicle License Tax minus any Vehicle License Tax credited under A.R.S. § 28- 2356,

e.         The date on which the Vehicle License Tax was paid, and

f.         The dates the rental vehicle was in and out of ser- vice.

2.        The total gross amount of Arizona vehicle rental revenues collected for the previous year. Supporting Arizona vehi- cle rental revenue records shall include:

a.         The rental contract for each rental vehicle,

b.        The amount of surcharge collected,

c.         Chart of accounts,

d.        General ledger,

e.         Financial statements,

f.         Federal tax returns, and

g.        Monthly trial balance.

3.        The amount of the surcharge collected during the previ- ous year. Supporting surcharge collection records shall include:

a.         All applicable rental contracts; and

b.        The total amount stated in each rental contract, sup- ported by relevant documentation.

4.        Failure to keep and maintain proper records or failure to provide records for audit purposes may result in the Department making an assessment against the rental busi- ness for the total surcharge amount estimated to have been collected, as determined from the best information available to the Director.

D.      Audits. The Department shall conduct each audit of a person who collects the surcharge in accordance with generally accepted government auditing standards as set forth in Gov- ernment Auditing Standards: 2011 Revision (commonly referred to as the Yellow Book,) issued by the U.S. Govern- ment Accountability Office. The Department incorporates by reference Government Auditing Standards: 2011 Revision and no later amendments or editions. The incorporated material is on file with the Department. The printed version is available from the U.S. Government Printing Office, P. O. Box 979050, St. Louis, MO 63197-9000. The incorporated material is avail- able free of charge at http://www.gao.gov/yellowbook or can be ordered online by visiting the U.S. Government Online Bookstore at http://bookstore.gpo.gov.

1.        The rental business shall have records made available for audit during normal business hours at the rental business location in Arizona. The Department may conduct audits at an out-of-state location, which are paid for by the rental business. The rental business shall pay the audit expenses, per diem, and travel in accordance with the Arizona Department of Transportation expense guide- lines in effect at the time of the audit.

2.        The Director has appropriate subpoena powers to require records to be produced for examination and to take testi- mony. In accordance with A.R.S. § 28-5922, if a person fails to respond to the Director's or agent of the Director's request for records, the Director shall issue subpoenas for the production of records or allow seizure of records.

Historical Note

New Section made by final rulemaking at 13 A.A.R. 2058, effective August 4, 2007 (Supp. 07-2). Amended

by final rulemaking at 19 A.A.R. 888, effective, June 1, 2013 (Supp. 13-2).