Yea, just like a manual trans, I believe. I towed mine 171 miles just two weeks ago without a problem. With the engine running, place the shift selector in 'N' and turn the key as far counter clockwise as it will go without forcing. The key stays in the ignition so carry a spare beccause the doors lock at 15 -20 mph.
Since the trans is right on the drive axel, I would think (having not seen a tech manual) it is dis-engaged. No drive shaft, there may be two half shafts turning some gearing somewhere in the trans but they are bathed in trans fluid. Towed my beetle 4 down nearly 6000 miles without a problem (manual Trans). For all the Auto in the smart the trans is a manual.