Rule 42.31.2133 - ADDITIONAL REPORT AND WITHHOLDING REQUIREMENTS IN CASE OF SUBLET CONTRACT(1) Whenever a contract for the performance of public construction or reconstruction has been awarded by any governmental agency, including the federal government, and a contractor sublets a contract in connection with such construction or reconstruction, the contractor awarding the subcontract must complete and file with the department of revenue a contract award report (Form CGR-1) which must contain the information specified in ARM 42.31.2131.(2) Any contractor subletting a contract is also required to withhold one percent of the amount due to the subcontractor but will not transmit such amount to the department. The contractor will complete the gross receipts withholding report (Form CGR-2) checking the box marked "Subcontractor Allocation." The amount withheld will then be credited to the subcontractor and deducted from the original one percent which was withheld from the prime contractor. For failure to file the allocation report within the required 30-day period, provided for in ARM 42.31.2132, a penalty of 10 percent of the tax withheld from the subcontractor shall be due from the prime contractor.Mont. Admin. r. 42.31.2133
Eff. 12/31/72; AMD, Eff. 5/5/77; AMD, 1995 MAR p. 2854, Eff. 12/22/95; AMD, 2000 MAR p. 3569, Eff. 12/22/00; AMD, 2024 MAR p. 2397, Eff. 10/5/2024AUTH: 15-1-301, MCA; IMP: 15-50-101, 15-50-205, 15-50-206, MCA