A. For the purpose of determining the correctness of a return or the correct amount of tax due from any taxpayer engaged in business in the city, the finance director may authorize an agent to conduct an audit by examining any relevant books, accounts and records of such person. The taxpayer need not hold a license for an audit to be conducted, providing that the finance director finds reasonable cause to believe that taxes may be due to the city.

B. All of the taxpayer's books, accounts and records shall be open at any time during regular business hours for examination by an authorized agent of the finance director. If any taxpayer refuses to furnish voluntarily any of the foregoing information when requested by the finance director or authorized agent, the finance director may issue a subpoena to require that the taxpayer or the taxpayer's representative attend a hearing or produce any such books, accounts and records for examination.

C. Any tax deficiency or overpayment ascertained through audit shall be computed by one or more of the following methods or any other method as the agent of the finance director deems appropriate:

1. By identifying employees on which the tax was not properly or accurately withheld or paid;

2. By identifying other irregularities in the calculation of tax due;

3. By estimating taxes due based on the results of testing taxpayer's records on a statistical or other reasonable basis.

D. Any charitable organization claiming exemption under the provisions of this chapter is subject to audit in the same manner as any other person engaged in business in the city.

E. The city is authorized to audit tax-payer's records for the thirty-six calendar months preceding the month the taxpayer is notified that an audit is to be conducted. The audit period may be extended by mutual agreement of the city and the taxpayer. The ability to audit this thirty-six-month period shall not lapse due to the passage of time once the taxpayer has been notified of the audit period. If the taxpayer failed to file returns, then the city shall have the right to audit indefinitely periods not filed. If returns are filed late, then the city shall have the right to audit late returns for thirty-six months following the month the return was filed.

F. All taxpayer records shall be made available to the city within a fifty-mile radius of the city's municipal office. If the taxpayer does not wish to make records available within this area, then the finance director may elect to assess the taxpayer for all expenses associated with sending auditors to the location selected by the taxpayer and for reasonable expenses, including food and lodging, incurred by the auditors during the period of the audit and until their return to the city. Such liability shall become part of the final audit assessment and shall be treated as an unpaid tax.

G. If the taxpayer does not provide files in an organized format; if the auditors must go through taxpayer files, boxes, etc., in order to obtain records for audit; or if taxpayer fails to provide information in a timely fashion, the city shall be entitled to charge an hourly fee for time spent organizing, gathering, or in any way assembling taxpayer records for audit. Such fee shall be determined by the finance director, but in no event shall fee exceed two and one-half times the auditor's hourly salary. (Ord. 1997-28 § 1 (part); Ord. 1993-7 Exh. B (part))