ARM 42.31.2122. GROSS RECEIPTS WITHHOLDING BY AGENCY

(1) The governmental agencies that have awarded a contract for the performance of public construction or reconstruction works and are making payment for the satisfactory performance of said contract, or any increment thereof, must withhold 1% of the amount due and transmit such amount withheld to the department along with a gross receipts withholding report (form PC-2) which must contain the following: (a) governmental agency that awarded the contract and is making payment; (b) contract number, location and general description of construction to be performed, and the date contract was awarded; (c) name and address of the contractor to whose account the 1% payment is to be credited; (d) total sum due the contractor, including amounts to be withheld until completion of the contract; (e) total sum due the contractor less any amount to be withheld until completion of the contract by including the 1% withholding; (f) net amount paid the contractor at time of reporting; and (g) amount transmitted to the department at time of reporting. (2) The withholding agent or agency must in all cases issue a receipt to the contractor for all monies withheld under Title 15, chapter 50, MCA.