77-2705.05. Direct payment permit; managed compliance agreements; authorized.

(1) The Tax Commissioner may enter into managed compliance agreements with any holder of a direct payment permit pursuant to sections 77-2705.01 to 77-2705.03 if such holder also makes monthly remittances or payments of sales or use taxes by electronic funds transfer as authorized by section 77-1784.

(2) Such managed compliance agreements shall:

(a) Establish a percentage of purchases, or percentages for categories of purchases, that are presumed to be taxable such that the payment of tax on such percentage or percentages of purchases will result in substantially all of the sales and use tax liability being paid each year;

(b) Establish limits by which the amount of tax paid may vary from the estimated actual tax liability. Such limits may be either a percentage of the estimated actual tax liability or a dollar amount, but the agreed-upon limits must result in an amount between ninety-five percent and one hundred five percent of the estimated actual tax liability; and

(c) Require at least once a year the examination of the reasonableness of the percentage or percentages established in subdivision (a) of this subsection and determine the difference between the amount of sales and use taxes paid and the estimated actual tax liability.

(3) The Tax Commissioner shall adjust the percentage or percentages established in subdivision (2)(a) of this section for future periods as necessary to result in substantially all of the tax liability being paid each year.

(4) If the difference between the amount of sales and use taxes paid and the estimated actual tax liability is within the agreed-upon limits established in subdivision (2)(b) of this section, the percentages or amounts will be considered to have been reasonable for the preceding period, the tax liability shall be considered satisfied for such period, no additional tax payments shall be required for such period, and no refunds shall be allowed for such period. If such difference is not within the agreed-upon limits established in subdivision (2)(b) of this section, the difference shall be remitted to the state or refunded. Interest at the rate specified in section 45-104.01, as such rate may from time to time be adjusted by the Legislature, shall be due on the underpayment or refund from the date of the last payment for the period until the date the amount is paid or refunded.

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