(a) When
tax is separately charged and/or collected. The total amount
of gross income shall be exclusive of combined taxes only when the
person upon whom the tax is imposed shall establish to the satisfaction
of the Tax Collector that such tax has been added to the total price
of the transaction. The taxpayer must provide to his customer and
also keep a reliable record of the actual tax charged or collected,
shown by cash register tapes, sales tickets, or other accurate record,
separating net transaction price and combined tax. If at any time
the Tax Collector cannot ascertain from the records kept by the taxpayer
the total or amounts billed or collected on account of combined taxes,
the claimed taxes collected may not be excluded from gross income,
unless such records are completed and/or clarified to the satisfaction
of the Tax Collector.
(1) Remittance
of all tax charged and/or collected. When an added charge
is made to cover City (or combined) Privilege and Use Taxes, the
person upon whom the tax is imposed shall pay the full amount of
the City taxes due, whether collected by him or not, and in the
event he collects more than the amount due he shall remit the excess
to the Tax Collector. In the event the Tax Collector cannot ascertain
from the records kept by the taxpayer the total or amounts of taxes
collected by him, and the Tax Collector is satisfied that the taxpayer
has collected taxes in an amount in excess of the tax assessed under
this Chapter, the Tax Collector may determine the amount collected
and collect the tax so determined in the manner provided in this
Chapter.
(2) Itemization.
A taxpayer, in order to be entitled to exclude from his gross income
any amounts paid to him by customers for combined taxes passed on
to the customer, must prove that he has provided his customer with
a written record of the transaction showing at a minimum the price
before the tax, the combined taxes, and the total cost. This shall
be addition to the record required to be kept under subsection (a)
above.
(b) When
tax has been neither separately charged nor separately collected.
When the person upon whom the tax is imposed shall establish by means
of invoices, sales tickets, or other reliable evidence, that no added
charge was made to cover combined taxes, the taxpayer may exclude
tax collected from such income by dividing such taxable gross income
by 1.00 plus a decimal figure representing the effective combined
tax rate expressed as a fraction of 1.00.
