Frequently Asked Questions

Have questions about the licensing process?  Don't worry, we have asked our experts to provide you with some information.  If you still have questions, please contact us directly.  We try to answer e-mail requests within 48 hours.

A Business License audit is an examination of the financial records of a business by the Department to determine whether the business has remitted the proper amount of license fees and taxes and is operating in compliance with provisions of the Clark County Code and any applicable franchise agreements. There are three possible outcomes to an audit. First, an audit may result in a notice that taxes and/or fees were properly remitted and no payment or refund is due. Second, an audit may result in a notice that a refund of overpaid taxes and/or fees are due back to the business. Third, an audit may result in a notice that additional taxes and/or fees are due from the business.

It is always our desire to conduct audits in a professional and courteous fashion with minimum disruption to the business and its accounting activities. We also strive to keep businesses well informed during an audit. The auditor should provide prompt and thorough responses to questions and provide reasonable up-front estimates of how long audits will take. The auditor should explain tax and compliance findings as well as audit appeal rights. All audit working papers and audit results are reviewed by supervisory personnel before they are finalized

At the conclusion of every audit, businesses have an opportunity to provide written feedback to the department regarding the conduct of the audit and any issues or concerns that may have arisen as a result of the audit. .

The auditor will contact you to schedule a mutually convenient date and time for the audit. You will receive written correspondence confirming the details of the appointment. Audits are usually performed at the business location; however, if circumstances make it impractical for the audit to be conducted at the business location, an alternate off-site location, such as a bookkeeper’s office may be acceptable. Regardless of where the audit work is conducted, the auditor will make an appointment to tour the business in order to become familiar with your operations, products and/or services, and facilities. The auditor will inform you which licenses are being audited and the periods to be examined for each license.

The type of records required for an audit will vary depending on the type of license audited. For transient lodging tax audits, please see Clark County Code Section 4.08.085 for a complete list of documents required.

For flat fee licenses that are based on a number of units, an accurate accounting of those units throughout the audit period will be required.

For gross licenses, your auditor will discuss the records requirement with you when the audit is scheduled. This discussion will allow the auditor to create a list of required documents that is tailored to your business and accounting system. As a general rule, however, the following types of documents will be required:

1. Copies of license renewal forms with supporting worksheets, calculations, and documentation of amounts reported for the audit period
2. Audited financial statements for the most current fiscal/calendar year
3. Monthly income statements for periods covered under the audit
4. Month end general ledger reports or subsidiary ledgers listing gross revenues
5. Monthly sales journals listing detailed transactions
6. Revenue worksheet summarizing revenues by reporting period (the auditor will send this form to you to be completed prior to the commencement of the audit)
7. Daily register summaries, sales invoices, z-tapes, and/or other supporting data for selected sample dates
8. Chart of accounts
9. Three most recent Federal income tax returns
10. Copies of bank statement for periods covered under the audit
11. Internal control questionnaire (the auditor will send this form to you to be completed prior to the commencement of the audit

A normal audit will include three years of audit history unless the business has been operating without a license or the auditor has reason to believe that the business has made a fraudulent or material misstatement of its revenue. The auditor will advise you of any periods to be audited outside of the normal three-year audit period should there be any.

Simply discuss any unresolved issues with the auditor. Due to the numerous different types of accounting systems and methods of recording revenues, it is possible that the auditor was not aware of factors that may have affected the outcome of the audit. Our auditors should always be willing to consider any relevant and material information in an attempt to resolve any disputed issues. However, if you are unable to resolve the matter with your auditor, you have the right to appeal the audit results, as described in the following question.

The semi-annual license fee is paid in advance and is based on the gross sales/receipts of the business. The standard fee payment represents a prepayment of fees based on estimated sales/receipts for the upcoming license period. At every license renewal, the six-month license renewal fee for the next period (the “in advance” period) is calculated based upon the “prior” six-month’s gross sales/receipts. Thus, during an audit, if the actual sales in that license period are greater than the amount the licensee estimated, an additional fee may be assessed based on the difference. On the other hand, if the estimated sales were greater than the actual sales, a refund of fee may be issued. For additional information, see the following memo issued by Department describing this matter in greater detail.

Courtesy visits are scheduled at newly licensed transient lodging establishments and supper clubs to help ensure that you have a good understanding of the record keeping and compliance matters involved in these businesses. The auditor will walk through your operations with you and take a look at your records. The auditor will alert you to any practices that could be a problem later on and provide advice on how to correct the matter. The auditor will share suggestions designed to make your recordkeeping more complete and accurate so that you’re ready in the event of a future audit. The auditor will discuss all the tax issues with you to help ensure that you have a full understanding of the law and the reporting requirements. This helps make sure that your business gets off on the right foot. This time is an opportunity for businesses to ask any questions they may have regarding their regulatory requirements. By taking full advantage of the auditor’s knowledge, asking questions and sharing any concerns, it is our hope that you will get off to a much more successful start in your new endeavor.

This form is usually required when the business’ headquarters and primary accounting operations are located outside of Clark County or when greater assurance is desired regarding the completeness and reliability of the records provided. This extra assurance may serve to expedite the audit by minimizing testing requirements and/or time spent corresponding back and forth.

Clark County Code 4.08.085 specifies the records that must be kept by Transient Lodging Establishments.

Effective July 1, 2002 the requirement for government exemption from room tax has been streamlined. Except for foreign diplomats, most tax exempt categories require only the final billing statements and evidence of government direct pay (copies of government payments or direct pay credit cards). (See our Industry letter dated January 9, 2008 for new requirements and related Clark County Codes.)

•  Government credit card number scheme
•  Letters from states concerning exemption policies for government credit cards
•  Government Travel Card Information

 “Permanent resident” means any individual who has or shall have the right of occupancy in a sleeping room/space at the same transient lodging establishment for thirty-one consecutive days or more, and for whom rent is exempt from the transient lodging tax on the thirty-first day and every consecutive day thereafter, provided the individual continues to occupy or continues the right to occupy a sleeping room/space at the same transient lodging establishment.  [Clark County Codes 4.08.005(14)]

Per Clark County Code 4.08.050 (b), no transient lodging tax is imposed on rent received from permanent residents.

No.  See Guidance Letter - Government Contractor, dated October 27, 2008.

 I am planning to purchase/sell an existing transient lodging establishment. Are there any special tax reporting requirements that I should be aware of?