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HomeMy WebLinkAboutResolution 2006-090 declaring the 2006 amendments to the tax code a public record 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 of the Town of Maran a, 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. ATTEST: APPROVED AS TO FORM: """"""l ~ OF~ ~ ~ .~.,~~~\\\"""",,~~ ~O~-..~ ~ ~ :: J.; "CORPORATE \. ~ _SOC)Os: - -SEAL- - - 'i S ~ III'! ~ ~ ~ ~ ~ ~ ~ ~ "1 ~111"Ul'\\~ ~ ~ !:/IZ ,\g-I'~ 1111Ijn\\\~ Marana Resolution No. 2006-90 2006 Model City Tax Code Changes 1 . Refu nds of Excess Tax Collected. Makes nu merous changes to the process of refu nding 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. Cross income from other units, even at the same complex or project, is taxable. 1 SUMMARY OF CHANGES TO MODEL CITY TAX CODE (MCTC) DUE TO LAWS 2005, CHAPTER 116 (HB 2055) . Added definition of "excess tax" to Sec. 100, excluding tax collected on exempt income. This term is used in Reg. 250.1 and in the revised Sec. 560. The standard in the MCTC is that terms used in more than one section are defined in Sec. 100. . Changed interest rate in Sec. 540 to match the floating interest rate in A.R.S. 42- 1123(A) for interest charged after September 2005, compounding only the interest charged after September 2005. . Deleted the requirement in subsection 542(d) to remit any tax collected from customers as a condition of a refund due to a change in interpretation or application of the code. . Sec. 560 restructured for each subsection to deal with separate subjects in the approximate order of occurrence. . Removed former subsection (c) requiring taxpayers to remit any tax collected from customers as a condition of the refund. . New subsection (c) lists the minimum requirements for a claim (formerly in subsection (b)(4)). . New subsection (d) establishes the statute of limitations for a claim meeting the minimum requirements (formerly in subsection (b)(4)). . New subsection (e) establishes requirements and time limitations for the Tax Collector and taxpayer related to establishing that a claim meets the requirements of subsection (c), requests for documentation needed to support the claim (reasonably related and required by the Code, written requests, extensions, appeals related to requests), when a taxpayer may treat the claim as denied and establishes the burden of proof to show receipt of written communications. · New subsection (I) sets the interest rate on credits or refunds to taxpayers to match the interest rate charged in 540(a) and sets the date from which to calculate interest as the date the valid claim is filed. The interest is to be paid on refunded tax as done by the state. · New subsection (g) requires a written determination from the Tax Collector on the claim, which must include the taxpayer's rights of appeal. · New subsection (h) establishes when determination becomes final, unless appealed (formerly in subsection (e)), and provides for the award of fees and other costs to a taxpayer if they prevail. · New subsection (i) clarifies that all claims received by a city prior to October 1,2005 are subject to provisions of Section 560 as they existed prior to October 1, 2005. Additionally, the claim, interest or appeal provision changes to Section 560 cannot be cited or considered for claims received by a city prior to October 1, 2005. All claims received by a city after September 2005 are subject to the new provisions of Section 560. · Effective date provision that must be a part of each city's adopting ordinance makes the ordinance effective October 1, 2005. RESOLUTION NO. A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, DECLARING AS A PUBLIC RECORD THAT CERTAIN DOCUMENT FILED WITH THE CITY CLERK AND ENTITLED liTHE 2006 AMENDMENTS TO THE TAX CODE OF THE TOWN OF MARANA", BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA: THAT certain document entitled liTHE 2006 AMENDMENTS TO THE TAX CODE OF THE TOWN OF MARANA", three copies of which are on file in the office of the city clerk, is hereby declared to be a public record, and said copies are ordered to remain on file with the city clerk. PASSED AND ADOPTED BY THE Mayor and Council of the Town of Marana, Arizona, this day of , 2006. Mayor ATTEST: City Clerk APPROVED AS TO FORM: City Attorney ORDINANCE NO. AN ORDINANCE 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 city clerk of the Town of Marana, Arizona, which document was made a public record by Resolution No._ of the 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 day of , 2006. Mayor ATTEST: City Clerk APPROVED AS TO FORM: City Attorney 2006 AMENDMENTS TO THE TAX CODE OF THE TOWN OF MARANA Section 1. Section 8-445 of the Tax Code of the Town of Marana is amended to read: Sec. 8-445. Rental, leasing, and licensing for use of real property. (a) The tax rate shall be at an amount equal to two and one-half percent (2.5%) 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 to the final licensee 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 8-470. (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 a qualifying hospital, qualifying community health center or a qualifying health care organization 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. (e) (Reserved) (f) (Reserved) (g) (Reserved) (h) Except as may be provided in another section of this 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) 0) Exempt from the tax imposed by this Section is gross income derived from the activities taxable under Section 8-444 of this code. (k) (Reserved) (I) (Reserved) (m) (Reserved) (n) Notwithstanding the provisions of Section 8-200(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. (0) Income derived from incarcerating or detaining prisoners who are under the jurisdiction of the United States, this State or any other state or a political subdivision of this State or of any other state in a privately operated prison, jailor detention facility is exempt from the tax imposed by this Section. (p) Charges by any hospital, any licensed nursing care institution, or any kidney dialysis facility to patients of such facilities for the use of rooms or other real property during the course of their treatment by such facilities are exempt. (q) Charges to patients receiving "personal care" or "directed care", by any licensed assisted living facility, licensed assisted living center or licensed assisted living home as defined and licensed pursuant to Chapter 4 Title 36 Arizona Revised Statutes and Title 9 of the Arizona Administrative Code are exempt. (r) INCOME RECEIVED FROM THE RENTAL OF ANY "LOW-INCOME UNIT" AS ESTABLISHED UNDER SECTION 42 OF THE INTERNAL REVENUE CODE, INCLUDING THE LOW-INCOME HOUSING CREDIT PROVIDED BY IRC SECTION 42, TO THE EXTENT THAT THE COLLECTION OF TAX ON RENTAL INCOME CAUSES THE "GROSS RENT" DEFINED BY IRC SECTION 42 TO EXCEED THE INCOME LIMITATION FOR THE LOW-INCOME UNIT IS EXEMPT. THIS EXEMPTION ALSO APPLIES TO INCOME RECEIVED FROM THE RENTAL OF INDIVIDUAL RENTAL UNITS SUBJECT TO STATUTORY OR REGULATORY ''LOW-INCOME UNIT" RENT RESTRICTIONS SIMILAR TO I RC SECTION 42 TO THE EXTENT THAT THE COLLECTION OF TAX FROM THE TENANT CAUSES THE RENTAL RECEIPTS TO EXCEED A RENT RESTRICTION FOR THE LOW-INCOME UNIT. THIS SUBSECTION ALSO APPLIES TO RENT RECEIVED BY A PERSON OTHER THAN THE OWNER OR LESSOR OF THE LOW- INCOME UNIT, INCLUDING A BROKER. THIS SUBSECTION DOES NOT APPLY UNLESS A TAXPAYER MAINTAINS THE DOCUMENTATION TO SUPPORT THE QUALIFICATION OF A UNIT AS A LOW-INCOME UNIT, THE "GROSS RENT" LIMITATION FOR THE UNIT AND THE RENT RECEIVED FROM THAT UNIT. Section 2. Section 8-542 of the Tax Code of the Town of Marana is amended to read: Section 8-542. Prospective application of new law or interpretation or application of law. (a) Unless expressly authorized by law, the Tax Collector shall not apply any newly enacted legislation retroactively or in a manner that will penalize a taxpayer for complying with prior law. (b) If the Tax Collector adopts a new interpretation or application of any provision of this Chapter or determines that any provision applies to a new or additional category or type of business and the change in interpretation or application is not due to a change in the law: (1) The change in interpretation or application applies prospectively only unless it is favorable to taxpayers. (2) The Tax Collector shall not assess any tax, penalty or interest retroactively based on the change in interpretation or application. (c) For purposes of subsection (b), "new interpretation or application" includes policies and procedures which differ from established interpretations of this Chapter. (d) Tax li~bilities, l5enalties Md iFlterest l5aid before a FIe.. iFlterl5retatioFl or al5l5licatioFl of a I5rovisioFl of this Cl'lal5ter shall F10t be refuFlded uFlless the taxl5ayer reejuesting the refuFld I5rovides evideFlce satisfactory to the Tax Collector that all such afl'louFlts ..iII be refuFlded to the l5ersoFl '{y'1'I0 l5aid aFl added charge to cOver the tax. (RESERVED) Section 3. Section 8-560 of the Tax Code of the Town of Marana is amended to read: Sec. 8-560. Erroneous payment of tax; credits and refunds; limitations. (a) The Tax Collector may authorize either credits or payments of refunds for any taxes, penalties or interest paid in excess of the amount actually due. Any credit authorized by the Tax Collector shall be canceled from the accounts of the City if no timely filed request for credit or refund is made by the taxl5a~er CLAIMANT claiming same within one (1) year following the date of determination and notice by the Tax Collector of the excess payment. FOR PURPOSES OF THIS SECTION, "CLAIMANT" MEANS A TAXPAYER THAT HAS PAID A TAX IMPOSED UNDER THIS ARTICLE AND HAS SUBMITTED A CREDIT OR REFUND CLAIM UNDER THIS SECTION. EXCEPT WHERE THE TAXPAYER HAS GRANTED A CUSTOMER A POWER OF ATTORNEY TO PURSUE A CREDIT OR REFUND CLAIM ON THE TAXPAYER'S BEHALF, CLAIMANT DOES NOT INCLUDE ANY CUSTOMER OF SUCH TAXPAYER, WHETHER OR NOT THE CLAIMANT COLLECTED THE TAX FROM CUSTOMERS BY SEPARATELY STATED ITEMIZATION. (b) No credit shall be allowed or refund paid except under one of the following conditions: (1) as provided in Section 8-565. (2) upon examination of filed returns for any period not excluded by Section 8-550, and not to exceed the tax, penalty, or interest actually paid with such returns. (3) upon audit or other examination of the books and records of the taxpayer, but only for periods as provided in Section 8-550. In the case of an examination performed at the taxpayer's request, credit shall be allowed or refund paid only for any excess taxes, penalties, or interest actually paid within the limitation period provided in Section 8-550, such period to be calculated from the date of receipt of the taxpayer's request by the Tax Collector. Requests by taxpayers for audits to authorize credits shall be honored unless, in the opinion of the Tax Collector, the taxpayer has made excessive requests for audits. (4) upon the taxl5ayer's CLAIMANT'S submission of a written claim forcREDITOR refund of any excess taxes, penalties, or interest paid to the City by the taxpayer CLAIMANT. Wl'leFl a 'MitteFl e1aifl'l for refuFld is subfl'litted, credit shall be ~lIovved 01 refuFld l5aid oFlly for those excess taxes, l5enalties, or iFlterest l5aid vvitl'liFl the lifl'litatioFll5eriod I5rovided iFl GectioFl o 550, such l5eriod to be calculated frofl'l the date the Tax Collector receives the taxl5ayer's vvrineFl refuFld e1aifl'l. A refund c1aifl'l subfl'litted by a taxl5ayer l5ursuant to this subsectioFl fI'lust ideFltify the sl5eeific grounds ul50Fl ~l'Iicl'l the c1aifl'l is based, the dollar afl'louFlt of the refuFld reejuested, the sl5eeific tax periods iFlvolved, aFld the F1afl'le, address aFld tax ideFltificatioFl F1ufl'lber of the claifl'lant. (c) No credit will be allo'vved or refund l5aid vvl'lere it al5pears that the taxl5ayer has collected, by sel5arately stated itefl'li:z:atioFl, the amouFlt of the tax, excel5t that a credit or refuFld ..iII be allovved iFl such case if the taxl5ayer caFl I5reseFlt docufl'leFltatioFl satisfactol') to the Tax Collector identifyiFlg each custofl'ler frofl'l vvl'lOfl'l the excess taxes vvere collected aFld establisl'liFlg that aFlY taxes refuFlded l5ursuMt to this GectioFl vvill be refl'litted to those custofl'lers .~'itl'liFl sixty (60) days of receipt of the refund. (c) A CREDIT OR REFUND CLAIM SUBMITTED BY A CLAIMANT PURSUANT TO SUBSECTION (B)(4) OF THIS SECTION MUST: (1) IDENTIFY THE NAME, ADDRESS AND CITY TAX IDENTIFICATION NUMBER OF THE TAXPAYER; AND (2) IDENTIFY THE DOLLAR AMOUNT OF THE CREDIT OR REFUND REQUESTED; AND (3) IDENTIFY THE SPECIFIC TAX PERIOD INVOLVED; AND (4) IDENTIFY THE SPECIFIC GROUNDS UPON WHICH THE CLAIM IS BASED. (d) IFlterest sl'lall be allo..ed at the I'8te of iFlterest earFliFlgs 6n tl'le To..F1 6f Marana' Treasurer's 1'601 for tl'le peri6d of time tl'le casl'l v~'as I'Ield. Interest sl'lall be calculated from tl'le time 6f tl'le refuFld claim made to tl'le City b:y tl'le taxpayer. (d) WHEN A WRITTEN CLAIM FOR CREDIT OR REFUND IS SUBMITTED PURSUANT TO SUBSECTION (B)(4) OF THIS SECTION, NO CREDIT SHALL BE ALLOWED OR REFUND PAID EXCEPT FOR THOSE TAXES, PENALTIES, OR INTEREST PAID IN EXCESS OF THE AMOUNT DUE WITHIN THE LIMITATION PERIOD PROVIDED IN SECTION 8-550. THE CREDIT OR REFUND LIMITATION PERIOD SHALL BE CALCULATED FROM THE DATE THE TAX COLLECTOR RECEIVES THE CLAIMANT'S WRITTEN CLAIM MEETING THE REQUIREMENTS OF SUBSECTION (C) OF THIS SECTION. (e) Tl'le determiFl8ti6F1 of tl'le Tax C611ector tl'lat FIO refuFld or credit is to be paid or allo..ed pursuaFlt to tl'lis CectioFl ma:y be appealed by tl'le taxl'a:yer uFlder tl'le pr6,risioFlS of CectioFl 0 ~70. (e) THE FOLLOWING ADDITIONAL REQUIREMENTS APPLY TO THE TAX COLLECTOR AND THE CLAIMANT FOR CLAIMS FOR CREDIT OR REFUND SUBMITTED PURSUANT TO SUBSECTION (B)(4) OF THIS SECTION: (1) THE TAX COLLECTOR SHALL NOTIFY THE CLAIMANT THAT THE CLAIM FOR CREDIT OR REFUND HAS BEEN RECEIVED AND SHALL INDICATE WHETHER THE CLAIM MEETS THE REQUIREMENTS OF SUBSECTION (C) OF THIS SECTION. IF THE CLAIM DOES NOT MEET THE REQUIREMENTS OF SUBSECTION (C) OF THIS SECTION, THE TAX COLLECTOR SHALL IDENTIFY THE DEFICIENCY IN WRITING. ANY CLAIM THAT DOES NOT MEET THE REQUIREMENTS OF SUBSECTION (C) OF THIS SECTION SHALL NOT SECURE THE LIMITATION PERIOD PURSUANT TO SECTION 8-550. (2) THE TAX COLLECTOR MAY REQUEST, IN WRITING, ADDITIONAL INFORMATION OR DOCUMENTATION FROM THE CLAIMANT TO SUPPORT THE REQUESTED CREDIT OR REFUND . SUCH INFORMATION OR DOCUMENTATION MUST BE REASONABLY RELATED TO THE CLAIM AND REQUIRED TO BE MAINTAINED UNDER THIS CHAPTER IN THE NORMAL COURSE OF BUSINESS. (A) THE CLAIMANT MAY REQUEST IN WRITING ONE OR MORE EXTENSIONS TO SUPPLY THE REQUESTED INFORMATION OR DOCUMENTATION. THE TAX COLLECTOR MAY REJECT AN EXTENSION REQUEST ONLY BY DENYING THE CLAIM IN WHOLE OR IN PART, SUBJECT TO APPEAL BY THE CLAIMANT PURSUANT TO SECTION 8-570. (8) A CLAIMANT AGGRIEVED BY A REQUEST FOR INFORMATION OR DOCUMENTATION UNDER THIS SUBSECTION MAY FILE AN APPEAL IN THE MANNER PROVIDED FOR IN SECTION 8-570 REGARDING THE SCOPE OF THE REQUEST FOR INFORMATION OR DOCUMENTATION. SUCH PETITION MUST BE FILED NO LATER THAN THE LAST DAY BY WHICH REQUESTED INFORMATION OR DOCUMENTATION MUST BE PROVIDED TO THE TAX COLLECTOR, INCLUDING ANY EXTENSIONS. THE DECISION OF THE HEARING OFFICER REGARDING A REQUEST FOR INFORMATION OR DOCUMENTATION MAY NOT BE APPEALED BY EITHER PARTY UNTIL THE CLAIM HAS BEEN APPROVED OR DENIED, IN WHOLE OR IN PART, UNDER SUBSECTION (H) OF THIS SECTION OR THROUGH SUBSUBSECTIONS (E)(3) OR (E)(4) OF THIS SECTION. A CLAIMANT SHALL NOT BE BARRED FROM RAISING THE ISSUE OF THE REASONABLENESS OF THE TAX COLLECTOR'S INFORMATION OR DOCUMENTATION REQUEST IN AN APPEAL FILED UNDER SUBSECTION (H) OF THIS SECTION OR THROUGH SUBSUBSECTIONS (E)(3) OR (E)(4) OF THIS SECTION THROUGH A LACK OF FILING A PETITION UNDER THIS SUBSUBSECTION. (3) IF THE TAX COLLECTOR FAILS TO REQUEST ADDITIONAL INFORMATION OR DOCUMENTATION PURSUANT TO THIS SECTION AND FAILS TO ISSUE A DETERMINATION ON ANY CLAIM FOR CREDIT OR REFUND WITHIN SIX (6) MONTHS AFTER THE CLAIM IS FILED, THE CLAIMANT MAY CONSIDER THE CLAIM DENIED AND MAY FILE AN APPEAL PURSUANT TO SECTION 8-570. (4) IF THE TAX COLLECTOR FAILS TO ISSUE A DETERMINATION WITHIN SIX (6) MONTHS OF RECEIVING ALL REQUESTED ADDITIONAL INFORMATION OR DOCUMENTATIQRiE CLAIMANT MAY CONSIDER THE CLAIM FOR CREDIT OR REFUND DENIED AND MAY FILE AN APPEAL PURSUANT TO SECTION 8-570. (5) THE BURDEN OF PROOF TO SHOW THAT A NOTICE, REQUEST, DETERMINATION OR OTHER COMMUNICATION WAS RECEIVED BY THE CLAIMANT IN THIS SECTION IS ON THE TAX COLLECTOR, AND WILL BE SATISFIED BY RECEIPT OF NOTICE. THE BURDEN OF PROOF TO SHOW THAT A CLAIM OR ADDITIONAL INFORMATION OR DOCUMENTATION WAS RECEIVED BY THE TAX COLLECTOR IS ON THE CLAIMANT AND WILL BE SATISFIED BY RECEIPT OF NOTICE. ~ (f) AFI~ refund pa.id uFlder tlge provisioF18 of tl9is GectioFl sl98.11 be pa.id from tlge privilege t8.X revenue a.CCOUFltS. (f) INTEREST SHALL BE ALLOWED ON THE OVERPAYMENT OF TAX FOR ANY CREDIT OR REFUND AUTHORIZED PURSUANT TO SUBSECTIONS (B)(3) OR (B)(4) OF THIS SECTION. SUCH INTEREST SHALL BE ALLOWED ON THE OVERPAYMENT OF TAX AT THE RATE AND IN THE MANNER SET FORTH IN SECTION 8-540(A), EXCEPT THAT INTEREST SHALL BE ALLOWED PRIOR TO OCTOBER 1,2005 AT THE RATE OF INTEREST EARNINGS ON THE TOWN OF MARANA TREASURER'S POOL FOR THE PERIOD OF TIME THE CASH WAS HELD THROUGH SEPTEMBER 30, 2005. INTEREST SHALL BE ALLOWED AS FOLLOWS: (1) FOR CREDITS OR REFUNDS AUTHORIZED PURSUANT TO SUBSECTION (B)(3) OF THIS SECTION, INTEREST SHALL BE CALCULATED FROM THE DATE THE TAX COLLECTOR RECEIVES THE CLAIMANT'S WRITTEN CLAIM FOLLOWING THE DATE OF NOTICE TO THE CLAIMANT AUTHORIZING THE CREDIT OR REFUND. (2) FOR CREDITS OR REFUNDS AUTHORIZED PURSUANT TO SUBSECTION (B)(4) OF THIS SECTION, INTEREST SHALL BE CALCULATED FROM THE DATE THE TAX COLLECTOR RECEIVES THE CLAIMANT'S WRITTEN CLAIM MEETING THE REQUIREMENTS OF SUBSECTION (C) OF THIS SECTION. (9) THE TAX COLLECTOR SHALL GIVE THE CLAIMANT A WRITTEN NOTICE OF DETERMINATION FOR A CLAIM MADE UNDER SUBSECTION (B) OF THIS SECTION. IF THE DETERMINATION IS A DENIAL OF A CLAIM, IN WHOLE OR IN PART, THE DETERMINATION MUST STATE THAT THE CLAIM FOR CREDIT OR REFUND HAS BEEN DENIED IN WHOLE OR IN PART, WITH THE REASON FOR DENIAL, AND MUST INCLUDE THE CLAIMANts RIGHTS OF APPEAL PURSUANT TO SECTION 8-570. (h) A DETERMINATION BY THE TAX COLLECTOR UNDER THIS SECTION, WHETHER AN APPROVAL OF A CLAIM OR A DENIAL OF A CLAIM, IN WHOLE OR IN PART, SHALL BECOME FINAL FORTY-FIVE (45) DAYS FROM THE DATE OF RECEIPT OF THE NOTICE BY THE CLAIMANT, UNLESS AN APPEAL IS MADE PURSUANT TO SECTION 8-570. IFTHE CLAIMANT IS THE PREVAILING PARTY IN AN APPEAL OF A DETERMINATION UNDER THIS SECTION, SECTION 8-578 SHALL APPLY, EXCEPT THAT REASONABLE FEES AND OTHER COSTS MAY BE AWARDED EITHER BY THE HEARING OFFICER OR COURT AND ARE NOT SUBJECT TO THE MONETARY LIMITATIONS OF SUBSECTION 8-578(E) IF THE TAX COLLECTOR'S POSITION WAS NOT SUBSTANTIALLY JUSTIFIED OR WAS BROUGHT FOR THE PURPOSE OF HARASSING THE CLAIMANT , FRUSTRATING THE CREDIT OR REFUND PROCESS OR DELAYING THE CREDIT OR REFUND. FOR THE PURPOSES OF THIS SECTION, "REASONABLE FEES AND OTHER COSTS" MEANS FEES AND OTHER COSTS THAT ARE BASED ON PREVAILING MARKET RATES FOR THE KIND AND QUALITY OFTHE FURNISHED SERVICES, NOT TO EXCEED THE AMOUNTS ACTUALLY PAID FOR EXPERT WITNESSES, THE COST OF ANY STUDY, ANALYSIS, REPORT, TEST, PROJECT OR COMPUTER PROGRAM THAT IS FOUND TO BE NECESSARY TO PREPARE THE CLAIMANT'S CASE AND NECESSARY FEES FOR ATTORNEYS OR OTHER REPRESENTATIVES. (i) THE AMENDMENTS TO THIS SECTION AS ENACTED IN ORDINANCE # SHALL BE EFFECTIVE AS FOLLOWS: (1) FOR ANY CLAIM FOR REFUND OR CREDIT RECEIVED BYTHET AX COLLECTOR BEFORE OCTOBER 1,2005, (A) THE PROVISIONS OF THIS SECTION AS IT EXISTED PRIOR TO THE ADOPTION OF ORDINANCE # SHALL APPLY, EXCEPT THAT INTEREST SHALL BE ALLOWED FROM AND AFTER OCTOBER 1, 2005 AS PROVIDED IN SUBSECTION (F) OF THIS SECTION AS ENACTED BY ORDINANCE # (8) EXCEPT AS NOTED IN SUBSECTION (1 )(A) ABOVE, THE AMENDMENTS TO THIS SECTION AS ENACTED IN ORDINANCE # SHALL NOT BE CITED OR CONSIDERED IN THE CONSTRUCTION OR THE INTERPRETATION OF THE CITY TAX REFUND OR CREDIT PROVISIONS, INTEREST PROVISIONS, OR APPEAL PROVISIONS IN EFFECT PRIOR TO OCTOBER 1 , 2005. .. (2) THE PROVISIONS OF THIS SECTION ENACTED BY ORDINANCE # SHALL APPLY TO ALL CLAIMS FOR REFUND OR CREDIT, FOR ANY PERIODS AS DETERMINED BY SUBSECTIONS (D) OR (E) OF THIS SECTION, RECEIVED BY THE TAX COLLECTOR FROM AND AFTER OCTOBER 1 ,2005, EXCEPT FOR CLAIMS THAT, IN WHOLE OR IN PART, HAD BEEN RECEIVED BY THE COLLECTOR PRIOR TO OCTOBER 1, 2005. U) ANY REFUND PAID UNDER THE PROVISIONS OF THIS SECTION SHALL BE PAID FROM THE PRIVILEGE TAX REVENUE ACCOUNTS. Section 4. Regulation 8-250.1 of the Tax Code of the Town of Marana is amended to read: Reg. 8-250.1. Excess tax collected. If a taxpayer collects taxes in excess of the combined tax RATE from any customer in any transaction, all such excess tax shall be paid to the taxing jurisdictions in proportion to their effective rates. The right of the taxpayer to charge his customer for his own liability for tax does not allow the taxpayer to enrich himself at the cost of his customers. TAX PAID ON AN ACTIVITY THAT IS NOT SUBJECT TO TAX OR THAT QUALIFIES FOR AN EXEMPTION, DEDUCTION, EXCLUSION OR CREDIT IS NOT EXCESS TAX COLLECTED.