Record Maintenance

Every rentor must maintain adequate and complete records as necessary to prepare their rental tax returns and to determine the amount of the tax and the rental fee for which the rentor is liable.

The following records must be maintained for four years (current year plus three previous years).These records must be maintained even if the company is sold, relocates, or goes out of business.

1. A daily record of all cash and credit rentals by place of business. This record must include rentals under any type of financing or installment plan in use, and must indicate which rentals involved daily rental vehicles, and transactions for warranty, policy claims, or similar plans. In addition, you must document all temporary use and utility mileage.
2. A copy of all rental agreements, including voided agreements, agreements which were internally billed, and warranty or policy claim reimbursement agreements. Rental agreements should be pre-printed and include the following:
   • sequential numbers (pre-printed)
   • vehicle description
   • vehicle license plate number
   • odometer readings (in and out)
   • date (in and out)
3. Rentors that charge the vehicle license fee must maintain documentation to support how they arrived at the amount for this fee.

DMV conducts audits to ensure compliance with rental tax statutes, regulations and guidelines.