HomeMy WebLinkAboutOrdinance 96.18 Amending the town code relating to privilege license tax
-.
~
, .
MARANA ORDINANCE NO. 96.18
AN ORDINANCE OF THE TOWN OF MARANA, ARIZONA, RELATING TO THE PRIVILEGE
LICENSE TAX; AMENDING THE TOWN TAX CODE, SECTION 1-445 AND REGULATION
1-200.1, BY EXEMPTING RESIDENTIAL, NON-TRANSIENT, RENTALS OF REAL
PROPERTY; PROVIDING PENAL TIES FOR THE VIOLATION THEREOF; PROVIDING FOR
SEVERABILITY AND DESIGNATING AN EFFECTIVE DATE.
WHEREAS, the Town of Marana has previously adopted a tax code in order to provide
regulations for taxation, and now desires to amend that tax code in order to exempt certain
residential rental, leasing and licensing of lodging.
NOW, THEREFORE, BE IT ORDAINED by the Mayor and Council of the Town of Marana
Arizona, as follows:
Section 1. Section 1-445 of the town tax code is amended to read:
Sec. 1-445. Rental, leasing, and licensing for use of real property.
(a)
The tax rate shall be at an amount equal to two percent (2%) of the gross income from the
business activity upon every person engaging or continuing in the business of leasing, or
renting real property located within the town for a consideration, to the tenant in actual
possession, or the licensing for use of real property located within the Town for a
consideration including any improvements, rights, or interest in such property; provided
further that:
(1) Payments made by the lessee to, or on behalf of, the lessor for property taxes, repairs,
or improvements are considered to be part of the taxable gross income.
(2) Charges for such items as telecommunications, utilities, pet fees, or maintenance are
considered to be part of the taxable gross income.
(3) However, if the lessor engages in telecommunication activity, as evidenced by
installing individual metering equipment and by billing each tenant based upon
actual usage, such activity is taxable under Section 1-470.
(b) If individual utility meters have been installed for each tenant and the lessor separately
charges each single tenant for the exact billing from the utility company, such charges are
exempt.
(c) Charges by primary health care facilities to patients of such facilities for use of rooms or
other real property during the course of their treatment by such facilities are exempt.
(d) Charges for joint pole usage by a person engaged in the business of providing or furnishing
utility or telecommunication services to another person engaged in the business of providing
or furnishing utility or telecommunication services are exempt from the tax imposed by this
Section.
Marana, Arizona Ordinance 96.18
Page 1 of3
(e) (Reserved)
(Q (Reserved)
(g) (Reserved)
(h) (Reserved) EXCEPT AS MAY BE PROVIDED IN ANOTHER SECTION OF TIllS
CHAPTER, THE TAX PRESCRIBED BY THIS SECTION SHALL NOT INCLUDE
GROSS INCOME FROM THE RENTAL, LEASING, OR LICENSING OF LODGING OR
LODGING SPACE TO AN INDIVIDUAL WHO RESIDES THEREIN.
(I) (Reserved)
(j) Exempt from the tax imposed by this Section is gross income derived from the activities
taxable under Section 1-444 of this code.
(k) (Reserved)
(1) (Reserved)
(m) (Reserved)
'k:...... ~
(n)
Notwithstanding the provisions of Section 1-200(b), the fair market value of one (1)
apartment, in an apartment complex provided rent free to an employee of the apartment
complex is not subject to the tax imposed by this Section. For an apartment complex with
more than fifty (50) units, an additional apartment provided rent free to an employee for
every additional fifty (50) units is not subject to the tax imposed by this Section.
Section 2. Regulation 1-200.1 of the town tax code is amended to read:
Reg. 1-200.1. When deposits are includable in gross income.
(a) Refundable deposits shall be includable as gross income of the taxpayer for the month in
which the deposits are forfeited by the lessee.
(b) Nonrefundable deposits for cleaning, keys, pet fees, maintenance, or for aft)' other purpose
arc deemed gross income upon receipt. (RESERVED)
Section 3. Any person found guilty of violating any provision of these amendments to the tax code
shall be guilty of a class one misdemeanor. Each day that a violation continues shall be a separate
offense punishable as herein above described.
Section 4. All Marana ordinances, resolutions, or motions and parts of ordinances, resolutions, or
motions of the council in conflict with the provisions of this ordinance are hereby repealed, effective
as of the effective date of this ordinance.
Marana, Arizona Ordinance 96.18
Page 2 of3
-
Section 5. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any
reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction,
such decision shall not affect the validity of the remaining portions thereof.
Section 6. The provisions of this ordinance shall become effective on June I, 1996.
PASSED AND ADOPTED by the Mayor and Council of the Town of Maran a, Arizona this
2nd day of April, 1996.
-~
tll/vru~-
Mayor ED HONEA
.-
Marana, Arizona Ordinance 96.18
Page 3 of3