§ 12.50.150. Fiduciary duties.

A.

The fiduciary duties include at a minimum:

1.

Determining, implementing, and enforcing sufficient and relevant policies and practices to ensure proper performance of fiduciary duties;

2.

Charging, collecting, and safeguarding all taxes required by this chapter to be collected by the retailer;

3.

Directing and reviewing the actions of each member, officer, director, employee, and contractor employed or used by the retailer in the exercise of the fiduciary duties under this chapter;

4.

Performing all acts, not prohibited by this chapter, whether or not expressly authorized, that a reasonable and prudent person would consider necessary or proper in administering and safeguarding the taxes collected under this chapter; and

5.

Maintaining accounting records associated with taxes collected under this chapter in accordance with generally accepted accounting principles.

B.

The fiduciary is liable for a breach of a duty that is assigned or delegated. However, the fiduciary is not liable for a breach of a duty that has been delegated to another person if the duty is assigned by law to another person, except to the extent that the fiduciary or designee:

1.

Knowingly participates in, or knowingly undertakes to conceal, an act or omission of another person knowing that the act or omission is a breach of that person's duties under this chapter; or

2.

By failure to comply with this section in the administration of specific responsibilities, enables another person to commit a breach of duty.

C.

Funds held in a fiduciary capacity shall be clearly identified in a retailer's financial statement and, if maintained in an account at a financial institution, the account shall be clearly identified as a fiduciary account.

( AO No. 2016-49(S), § 1, 5-10-16 )