TAX/SALES-USE, LOCAL: Provides for local sales and use tax audit procedures (EN SEE FISC NOTE LF RV See Note)

Requires local collectors to select taxpayers for audits through a random selection process, with exceptions only for targeted audits based on reasonable evidence of non-compliance.

Requires collectors to provide dealers with a written list of requested documents and allow at least 30 days to produce them before issuing an estimated assessment.

Updates the process for suspending interest and penalties, requiring approval from a governing board or commission before initiating a targeted audit.

Prohibits collectors from issuing 'arbitrary assessments,' defining them as estimates that do not follow existing laws or assessments found to be grossly disproportionate (exceeding 10% or $10,000) after a court decision.

Clarifies that a waiver of the prescriptive period must be voluntary and cannot be conditioned on a taxpayer agreeing to an audit or paying taxes.

Corrected spacing and punctuation errors in the text of the enrolled bill to ensure legal clarity.

Removed the requirement that local sales tax collectors must select taxpayers for audits through random selection, replacing it with a requirement to provide a written request for specific documentation before issuing tax estimates.

Clarified that a taxpayer's agreement to suspend the prescriptive period (which stops interest and penalties from accruing) is voluntary.

Corrected a clerical error in the introductory section by removing a statute (337.26.1) that was incorrectly listed as being amended.

Added specific conditions under which penalties for failure to file timely returns cannot be waived, including if the taxpayer has paid under protest or entered into an installment agreement.