(1) The state tax commission on behalf of the department may audit an owner of motor vehicles subject to fees pursuant to this chapter.
(2) Every owner whose fees are computed as specified in section 49-434 or 49-435, Idaho Code, except those registering under subsection (8)(c) of section 49-434, Idaho Code, for over fifty thousand (50,000) miles driven, shall maintain records and permit the state tax commission to inspect the records upon request to substantiate that the actual miles traveled, if using a mileage schedule in subsection (8)(c) of section 49-434, Idaho Code, are less than the maximum mileage schedule.
(3) When the records are maintained outside this state by owners engaged in transportation in this state, the owner shall reimburse the state tax commission for reasonable expenses incurred by the state tax commission in conducting audits of those records and accounts at the out-of-state location. The owner or the state tax commission may request that the records be presented at a place within the state designated by the state tax commission. The records must be presented by a representative of the owner who is familiar with the records and who is responsible for the safekeeping of the records.
(4) Every owner is required to maintain records for the current year and the three (3) years immediately preceding. If an assessment has been made, such audit assessment may be collected by a proceeding in court within a period of three (3) years after the assessment or a final order entered pursuant to subsection (7) of this section.
(5) An owner who fails to maintain records as required by the provisions of this section may have the registration of all vehicles registered under section 49-434 or 49-435, Idaho Code, suspended until such time as adequate records as required by the provisions of this section are provided. In the event that the owner does not produce records, the state tax commission may generate a notice of deficiency based on an estimate of the operation. The state tax commission shall develop a methodology to be used to calculate a notice of deficiency based on an estimate of the operation. That methodology shall be in accordance with the international registration plan and international fuel tax agreement guidelines.
(6) The state tax commission shall provide the carrier with notice of deficiency and the opportunity to use the appeals process prior to a suspension. An owner may contest a notice of deficiency made by the state tax commission within thirty (30) days from receipt of the notice by filing an appeal in accordance with sections 63-3045, 63-3045B, 63-3047, 63-3048 and 63-3049, Idaho Code.