HomeMy WebLinkAbout06/20/2006 Blue Sheet Amending the Model City Tax Code
TOWN COUNCIL
MEETING
INFORMATION
TOWN OF MARAN A
MEETING DATE: June 20, 2006
AGENDA ITEM: J. 1
TO: MAYOR AND COUNCIL
FROM: Roy Cuaron, Finance Director
SUBJECT: Ordinance 2006.18 and Resolution No. 2006-90: Relating to Sales
Tax; amending the Model City Tax Code
DISCUSSION
Historically, the state legislature enacts legislation that affects the Model City Tax Code. The
2006 Tax Code Amendments conforms the Model City Tax Code with recent changes in state
law.
Generally speaking, the Model City Tax Code is a standard set of rules and regulations that
govern the imposition and collection of transaction privilege, use and severance taxes,
collectively known as sales tax. Most cities and towns throughout the state, including the Town
of Marana, have adopted the Model City Tax Code as their official enforcement guide.
The 2006 Tax Code Amendments are designed to reflect recent changes in state law to make
compliance with the tax code easier for businesses. The amendments are the result of a
combination of changes suggested by the Unified Audit Committee and the Arizona Tax
Research Association. The Unified Audit Committee is comprised of city/town auditors
throughout the state and the Arizona Department of Revenue. The committee meets regularly to
review tax code issues.
Attached is a synopsis of the changes as prepared by The League of Arizona Cities & Towns.
None would appear to have any detrimental impact on the Town's sales tax base. Among the
more notable changes are:
a) Make numerous changes to the process of refunding excess sales tax collected by the town;
b) Makes income from housing units rented to low income tenants exempt from sales tax.
Staffwill be available at the meeting to further explain and discuss the amendments.
ATTACHMENT
2006 Model City Tax Code Changes.
Adoption of Model City Tax Code
06/14/2006; 5:18 PM; RC
RECOMMENDATION
Staff recommends adoption ofthe 2006 Model City Tax Code amendments.
SUGGESTED MOTION
I move to adopt Ordinance No. 2006.18 and approve Resolution No. 2006-90.
2006 Model City Tax Code Changes
1. Refunds of Excess Tax Collected. Makes numerous changes to the process of refunding excess sales
tax collected by a city/town. Attached is a more detailed explanation of these changes.
2. Low-income Housing. The new language to be placed in the Model City Tax Code makes income
from housing units rented to low-income tenants exempt from sales tax (including Public Housing
tenants) when:
· the housing is restricted to tenants based on a maximum tenant income, and
· a maximum rent that can be paid by the tenant has been established under federal law or
regulations, and
· the federal law or regulations do not provide for collection of rental tax from the tenant over
and above the maximum rent, and
· the amount actually collected from the tenant is at the maximum rent level.
All rental income from the units meeting these four qualifications is exempt, including any related
subsidy or income tax credit. Gross income from other units, even at the same complex or project,
is taxable.
MARANA ORDINANCE NO. 2006.18
AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF MARANA,
ARIZONA, RELATING TO THE PRIVILEGE LICENSE TAX; ADOPTING "THE
2006 AMENDMENTS TO THE TAX CODE OF THE TOWN OF MARANA" BY
REFERENCE; ESTABLISHING AN EFFECTIVE DATE; PROVIDING FOR
SEVERABILITY AND PROVIDING PENALTIES FOR VIOLATIONS.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF
MARANA, ARIZONA:
Section 1: That certain document known as "The 2006 Amendments to the
Tax Code of the Town of Marana," three copies of which are on file in the office of the
Town Clerk ofthe Town of Marana, Arizona, which document was made a public record
by Resolution No. 2006-90 ofthe Town of Marana, Arizona, is hereby referred to,
adopted and made a part hereof as if fully set out in this ordinance.
Section 2: The provisions of this ordinance and the public record adopted
herein are effective from and after July 1, 2006.
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: If any section, subsection, sentence, clause, phrase or portion of
this ordinance or any part of these amendments to the tax code adopted herein by
reference 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.
PASSED AND ADOPTED by the Mayor and Council of the Town of Marana,
Arizona, this 20th day of June 2006.
ATTEST:
Mayor Ed Honea
APPROVED AS TO FORM:
Jocelyn C. Bronson, Town Clerk
Frank Cassidy, Town Attorney
MARANA RESOLUTION NO. 2006-90
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF MARANA,
ARIZONA, DECLARING AS A PUBLIC RECORD THAT CERTAIN DOCUMENT
FILED WITH THE TOWN CLERK AND ENTITLED "THE 2006 AMENDMENTS TO
THE TAX CODE OF THE TOWN OF MARANA."
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council ofthe Town
of Marana, Arizona, that certain document entitled "THE 2006 AMENDMENTS TO
THE TAX CODE OF THE TOWN OF MARANA," three copies of which are on file in
the office of the Town Clerk, is hereby declared to be a public record, and said copies are
ordered to remain on file with the Town Clerk.
PASSED AND ADOPTED by the Mayor and Council of the Town of Marana,
Arizona, this 20th day of June 2006.
Mayor Ed Honea
ATTEST:
APPROVED AS TO FORM:
Jocelyn C. Bronson, Town Clerk
Frank Cassidy, Town Attorney
Marana Resolution No. 2006-90