42-6013. Electronic consolidated real property management tax returns; definition

A. For taxable periods beginning from and after December 31, 2017, a city or town that levies a transaction privilege tax under this section shall allow persons who are licensed pursuant to title 32, chapter 20 and who are licensed with the department pursuant to section 42-5005, subsection M to file electronic consolidated tax returns with the department with respect to gross proceeds or gross income derived from the individual properties under management on behalf of the property owners, subject to the following conditions and requirements:

1. The department shall administer, collect and enforce the tax that is reported and paid pursuant to an electronic consolidated return and remit the collected revenues to the appropriate city or town.

2. The tax may not be collected from any property owner whose licensee has provided written documentation to the property owner and to the city or town that the licensee has reported and remitted or will report and remit the applicable tax with respect to the property under management.

3. The department shall develop an electronic consolidated return form that separately identifies each owner's property locations and the gross income and deductions for each property location. The licensee shall file the return electronically using the consolidated return form developed by the department.

4. All participating property owners included in the same electronic consolidated return must be on the same tax payment schedule and use the same cash receipts or accrual basis of reporting.

5. A licensee filing an electronic consolidated return:

(a) Acts in a fiduciary capacity as the property owners' agent.

(b) Is responsible and accountable to the property owners and to the city or town for fully and accurately reporting and paying to the department the tax and any other amounts due.

(c) Is subject to audit, as provided by law, of the electronic consolidated returns, including data in the licensee's possession that is used in compiling and filing the electronic consolidated returns.

(d) Notwithstanding section 42-1129, subsection A, shall remit the applicable tax in monies that are immediately available to this state on the date of the transfer in accordance with section 42-1129, subsection B.

6. A property owner:

(a) Remains ultimately responsible, accountable and liable for both:

(i) The accuracy of information the property owner furnishes to the licensee.

(ii) The return and payment of the full tax liability, including any penalties prescribed by section 42-1125.

(b) Is subject to audit, as provided by law, of the records in the property owner's possession that are submitted to the licensee for the purposes of the electronic consolidated return.

(c) May withdraw any of the property owner's properties from the electronic consolidated return on thirty days' written notice to the licensee, the department and the tax collector of the city or town.

B. For the purposes of this section, "licensee" means a person who is licensed pursuant to title 32, chapter 20 and who is licensed with the department pursuant to section 42-5005, subsection M.