§307. Collector's authority to determine the tax in certain cases
A. In the event any dealer fails to make a report and pay the tax as provided in this
Chapter or in case the dealer makes a grossly incorrect report or a report that is false or
fraudulent, the collector shall make an estimate of the retail sales of the dealer for the taxable
period, of the gross proceeds from rentals or leases of tangible personal property by the
dealer, or the cost price of all articles of tangible personal property or digital products
imported by the dealer for use or consumption or distribution or storage to be used or
consumed in this state, and of the gross amounts paid or charged for services taxable; and
it shall be the duty of the collector to assess and collect the tax together with any interest and
penalty that may have accrued thereon, which assessment shall be considered prima facie
correct and the burden to show the contrary shall rest upon the dealer.
B. In the event the dealer has imported tangible personal property or digital products
and fails to produce an invoice showing the cost price of the articles which are subject to tax,
or the invoice does not reflect the true or actual cost, then the collector shall ascertain in any
manner feasible the true cost price and shall assess and collect the tax, together with any
interest and penalties that may have accrued, on the basis of the true cost as assessed by him.
The assessment shall be considered prima facie correct, and the burden shall be on the dealer
to show the contrary.
C. In the case of the lease or rental of tangible personal property or digital products,
if the consideration given or reported by the dealer does not, in the judgment of the collector,
represent the true or actual consideration, then the collector is authorized to ascertain in any
manner feasible the true or actual consideration and assess and collect the tax thereon
together with any interest and penalties that may have accrued. The assessment shall be
considered prima facie correct and the burden shall be on the dealer to show the contrary.
D. In the event such estimate and assessment requires an examination of books,
records, or documents, or an audit thereof, then the collector shall add to the assessment the
cost of such examination, together with any penalties accruing thereon. Such costs and
penalties when collected shall be remitted to the State Treasurer in the same manner as the
taxes are remitted to him by the collector.
Acts 1948, No. 9, §8; Acts 2024, 3rd Ex. Sess., No. 10, §1, eff. Dec. 4, 2024.