(a) For the purposes
of proper administration of this Chapter and to prevent evasion of
taxes imposed, brokers shall be wherever necessary treated as taxpayers
for all purposes, and shall file a return and remit the tax imposed
on the activity on behalf of the principal. No deduction shall
be allowed for any commissions or fees retained by such broker, except
as provided in Section ___-405, relating to advertising commissions.
(b) Brokers
for vendors. A broker acting for a seller, lessor, or other
similar person deriving gross income in a category upon which this
Chapter imposes a tax shall be liable for such tax, even if his principal
would not be subject to the tax if he conducted such activity in his
own behalf, by reason of the activity being deemed a "casual" one.
For example:
(1) An auctioneer
or other sales agent of tangible personal property is subject to
the tax imposed upon retail sales, even if such sales would be deemed
"casual" if his principal had sold such items himself.
(2) A property
manager is subject to the tax imposed upon rental, leasing, or licensing
of real property, even if such rental, leasing, or licensing would
be deemed "casual" if his principal managed such real property himself.
(c) Brokers
for vendees. A broker acting solely for a buyer, lessee,
tenant, or other similar person who is a party to a transaction which
may be subject to the tax, shall be liable for such tax and for filing
a return in connection with such tax only to the extent his principal
is subject to the tax.
(d) The liability
of a broker does not relieve the principal of liability except upon
presentation to the Tax Collector of proof of payment of the tax,
and only to the extent of the correct payment. The broker shall
be relieved of the responsibility to file and pay taxes upon the filing
and correct payment of such taxes by the principal.
(e) (Reserved)
(See Prescott city page)
(f) Location
of Business. Retail sales by brokers acting for another
person shall be deemed to have occurred at the regular business location
of the broker, in a manner similar to that used to determine "out-of-city
sales"; provided, however, that an auctioneer is deemed to be engaged
in business at the site of each auction.
