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Senate Engrossed House Bill |
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State of Arizona House of Representatives Fifty-second Legislature First Regular Session 2015
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HOUSE BILL 2447 |
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AN ACT
amending title 42, chapter 6, article 1, Arizona Revised Statutes, by adding section 42‑6009; relating to consolidated tax returns.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 42, chapter 6, article 1, Arizona Revised Statutes, is amended by adding section 42-6009, to read:
42-6009. Consolidated real property manager returns
A. A city or town that levies a transaction privilege, sales, gross receipts, use, franchise or other similar tax, however denominated, on the business of rental, leasing or licensing use of real property shall allow property managers of real property to file consolidated tax returns with respect to gross income from the individual properties under management on behalf of the client property owners.
B. For taxable periods beginning from and after December 31, 2016, the department of revenue shall develop the software application and related coding necessary for property managers of real property to file online a single consolidated tax return with the department that captures each client property owner's license number and separately identifies each owner's property locations and the detailed gross income and any corresponding deductions for each property location.
C. Notwithstanding section 42-5014, subsection H and except as provided in subsection D of this section, from and after December 31, 2017, any property manager of real property who files a consolidated tax return pursuant to subsection a of this section shall file the return electronically after the department has successfully implemented the software and coding changes to allow for the filing of an online single consolidated tax return as described by this section.
D. From January 1 through December 31, 2017, any property manager of real property who files a consolidated tax return pursuant to subsection a of this section may file the return in a non-electronic format with the department.
E. A property manager filing a consolidated return shall obtain the written consent of each participating client property owner, including the owner's specific agreement and acknowledgement that allows confidential tax information to be consolidated with similar information from other owners and other properties. Notwithstanding section 42-2003, the written consent of each participating client property owner shall authorize the department to exchange confidential information regarding any client property owner relating to any reporting periods that the property manager was authorized to act on behalf of the client property owner. The written consent of each participating client property owner shall be maintained in the office of the property manager and shall be available for inspection on request.
F. All participating client property owners included in the same consolidated return shall be on the same tax payment schedule and use the same cash receipts or accrual basis of reporting.
G. A property manager filing a consolidated return:
1. Acts in a fiduciary capacity as the client property owners' agent.
2. Is responsible and accountable to the client property owners and to the city or town for fully and accurately reporting and paying the tax and any other amounts due.
3. Is subject to audit, as provided by law, of the consolidated returns, including data in the property manager's possession that is used in compiling and filing the consolidated returns.
4. Shall provide written notice to each client property owner within thirty days after filing each consolidated return of the date and amount of tax and other amounts paid to the city or town on the client property owner's behalf.
H. A client property owner:
1. remains ultimately responsible, accountable and liable for both:
(a) The accuracy of information the client property owner furnishes to the manager.
(b) The return and payment of the full tax liability.
2. Is subject to audit, as provided by law, of the records in the client property owner's possession that are submitted to the manager for the purposes of the consolidated tax return.
3. May withdraw any of the client property owner's properties from the consolidated return on thirty days' written notice to the property manager and to the city or town tax collector.