Title 48, Chapter 13, Section 97
(a) Any person collecting the tax under this article having both
cash and credit rental charges may report the rental charges on
either the cash or accrual basis of accounting. Each election of a
basis of accounting shall be made on the first return filed on or
after July 1, 1998, and, once made, the election shall be
irrevocable unless the commissioner grants written permission for a
change. Permission for a change in the basis of accounting shall be
granted only upon written application and under rules and
regulations promulgated by the commissioner.
(b) Any person reporting on a cash basis of accounting shall include
in each return all cash rental charges made during the period
covered by the return and all collections made in any period on
credit rental charges of prior periods and shall pay the tax on the
rental charges at the time of filing the return.
(c) Any person reporting on the accrual basis of accounting shall be
allowed a deduction for bad debts under rules and regulations of the
commissioner on the same basis that bad debts are allowed as a
deduction on state income tax returns.