HomeMy WebLinkAboutOrdinance 2011.17 Adopting the 2010-2011 tax code amendments F. ANN RODRIGUEZ, RECORDER IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
Recorded By: JCC
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DEPUTY RECORDER �Q SEQUENCE: 20112030003
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SMARA ORDIN 07/22/2011
TOWN OF MARANA 9:10
TOWN CLERK RIZO�
MAIL
11555 W CIVIC CENTER DR AMOUNT PAID: $8.00
MARANA AZ 85653
MARANA ORDINANCE NO. 2011.17
RELATING TO TRANSACTION PRIVILEGE TAX; ADOPTING THE 11 2010 -2011
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 "2010 -2011 Amendments to the Tax
Code of the Town of Marana," three copies of which are on file in the office of the town clerk of
the Town of Marana, Arizona, which document was made a public record by and attached as
Exhibit A to Resolution No. 2011 -71 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 : 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 3 : 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.
SECTION 4 : The provisions of section 1 of this ordinance shall be effective from and after
June 1, 2011. The provisions of section 2 through 5 of this ordinance shall be effective from and
after July 29, 2010. The provisions of section 6 of this ordinance shall be effective from and after
May, 1 2010. The provisions of section 7 of this ordinance shall be effective from and after
September 30, 2009.
PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF
MARANA, ARIZONA, this 19 day of July, 2011..
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OF
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ATTEST: C APPROVED AS TO FORM:
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?celyn BIZnson, Town Clerk j rank` assidy, To Attorney
{00027138.DOC /}
WHEN RECORDED RETURN TO: � OFFICIAL RECORDS OF
TOWN OF MARANA 18 75 PINAL COUNTY RECORDER
ATTN: TOWN CLERK LAURA DEAN -LYTLE
11555 W CIVIC CENTER DRIVE ....
MARANA, ARIZONA 85653 DATElTIME: 07/25/2011 1352
FEE: $0.00
PAGES: 1
FEE NUMBER: 2011 - 061287
I IIIIiI VIII VIII VIII VIII IIIiI VIII VIII VIII VIII IIII IIII
MARANA ORDINANCE NO. 2011.17
RELATING TO TRANSACTION PRIVILEGE TAX; ADOPTING THE "2010 -2011
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 "2010 -2011 Amendments to the Tax
Code of the Town of Marana," three copies of which are on file in the office of the town clerk of
the Town of Marana, Arizona, which document was made a public record by and attached as
Exhibit A to Resolution No. 2011 -71 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 : 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 3 : 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.
SECTION 4 : The provisions of section 1 of this ordinance shall be effective from and after
June 1, 2011. The provisions of section 2 through 5 of this ordinance shall be effective from and
after July 29, 2010. The provisions of section 6 of this ordinance shall be effective from and after
May, 1 2010. The provisions of section 7 of this ordinance shall be effective from and after
September 30, 2009.
PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF
MARANA, ARIZONA, this 19 day o
240O n� �i
1�=
P E
Mayor' Ed Honea
SEai.
ATTEST: APPROVED AS TO FORM:
? 0ceI Bronson, Town Clerk rank ssidy, Town orney
{00027138.DOC /}
MARANA RESOLUTION NO. 2011-71
RELATING TO TRANSACTION PRIVILEGE TAX; DECLARING AS A PUBLIC RECORD
THAT CERTAIN DOCUMENT FILED WITH THE TOWN CLERK AND ENTITLED THE
2010 -2011 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 the "2010 -2011 AMENDMENTS TO THE TAX CODE OF
THE TOWN OF MARANA," a copy of which is attached to and incorporated in this resolution
as Exhibit A and 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 19 day of July, 2011.
zv
Mayor E8 Honea
ATTEST:
4` 011111
so CW=
oce yn ronson, Town Clerk a s +L
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APPROVED AS TO FORM:1111
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t00027140.DOC /}
EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
2010 -2011 AMENDMENTS TO THE
TAX CODE OF THE TOWN OF MARANA
Section 1. Section 8 -100 of the Tax Code of the Town of Marana is amended to read:
Sec. 8 -100. General definitions.
For the purposes of this Chapter, the following definitions apply:
Assembler " means a person who unites or combines products, wares, or articles of manufacture so as to
produce a change in form or substance of such items without changing or altering component parts.
Broker " means any person engaged or continuing in business who acts for another for a consideration in
the conduct of a business activity taxable under this Chapter, and who receives for his principal all or part
of the gross income from the taxable activity.
Business " means all activities or acts, personal or corporate, engaged in and caused to be engaged in
with the object of gain, benefit, or advantage, either direct or indirect, but not casual activities or sales.
Business Day means any day of the week when the Tax Collector's office is open for the public to
conduct the Tax Collector's business.
Casual Activity or Sale means a transaction of an isolated nature made by a person who neither
represents himself to be nor is engaged in a business subject to a tax imposed by this Chapter. However,
no sale, rental, license for use, or lease transaction concerning real property nor any activity entered into
by a business taxable by this Chapter shall be treated, or be exempt, as casual. This definition shall
include sales of used capital assets, provided that the volume and frequency of such sales do not indicate
that the seller regularly engages in selling such property.
Combined Taxes means the sum of all applicable Arizona Transaction Privilege and Use Taxes; all
applicable transportation taxes imposed upon gross income by this County as authorized by Article III,
Chapter 6, Title 42, Arizona Revised Statutes; and all applicable taxes imposed by this Chapter.
Commercial Propert y " is any real property, or portion of such property, used for any purpose other than
lodging or lodging space, including structures built for lodging but used otherwise, such as model homes,
apartments used as offices, etc.
Communications Channel means any line, wire, cable, microwave, radio signal, light beam, telephone,
telegraph, or any other electromagnetic means of moving a message.
Construction Contracting refers to the activity of a construction contractor.
Construction Contractor means a person who undertakes to or offers to undertake to, or purports to have
the capacity to undertake to, or submits a bid to, or does himself or by or through others, construct, alter,
repair, add to, subtract from, improve, move, wreck, or demolish any building, highway, road, railroad,
excavation, or other structure, project, development, or improvement to real property, or to do any part
thereof. "Construction contractor" includes subcontractors, specialty contractors, prime contractors, and
any person receiving consideration for the general supervision and/or coordination of such a construction
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EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
project except for remediation contracting. This definition shall govern without regard to whether or not
the construction contractor is acting in fulfillment of a contract.
Delivery (of Notice) y the Tax Collector means "receipt (of notice) by the taxpayer ".
Delivery, Installation, or Other Direct Customer Services means services or labor, excluding repair
labor, provided by a taxpayer to or for his customer at the time of transfer of tangible personal property;
provided further that the charge for such labor or service is separately billed to the customer and
maintained separately in the taxpayer's books and records.
Engaizin ", when used with reference to engaging or continuing in business, includes the exercise of
corporate or franchise powers.
Equivalent Excise Tax means either:
a Privilege or Use Tax levied by another Arizona municipality upon the transaction in
question, and paid either to such Arizona municipality directly or to the vendor; or
an excise tax levied by a political subdivision of a state other than Arizona upon the
transaction in question, and paid either to such jurisdiction directly or to the vendor; or
an excise tax levied by a Native American Government organized under the laws of the
federal government upon the transaction in question, and paid either to such jurisdiction
directly or to the vendor.
Federal Government means the United States Government, its departments and agencies; but
not including national banks or federally chartered or insured banks, savings and loan
institutions, or credit unions.
Food " means any items intended for human consumption as defined by rules and regulations
adopted by the Department of Revenue, State of Arizona, pursuant to A.R.S. Section 42 -5106.
Under no circumstances shall "food" include alcoholic beverages or tobacco, or food items
purchased for use in conversion to any form of alcohol by distillation, fermentation, brewing, or
other process UNDER NO CIRCUMSTANCES SHALL "FOOD" INCLUDE AN EDIBLE
PRODUCT BEVERAGE OR INGREDIENT INFUSED MIXED OR IN ANYWAY
COMBINED WITH MEDICAL MARIJUANA OR AN ACTIVE INGREDIENT OF
MEDICAL MARIJUANA.
Hotel " means any public or private hotel, inn, hostelry, tourist home, house, motel, rooming
house, apartment house, trailer, or other lodging place within the Town offering lodging, wherein
the owner thereof, for compensation, furnishes lodging to any transient, except foster homes, rest
homes, sheltered care homes, nursing homes, or primary health care facilities.
Job Printing means the activity of copying or reproducing an article by any means, process, or
method. "Job printing" includes engraving of printing plates, embossing, copying,
micrographics, and photo reproduction.
00027141.DOC /)
EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
Lessee " includes the equivalent person in a rental or licensing agreement for all purposes of this
Chapter.
Lessor " includes the equivalent person in a rental or licensing agreement for all purposes of this
Chapter.
Licensing (for Use) means any agreement between the user ( "licensee ") and the owner or the
owner's agent ( "licensor ") for the use of the licensor's property whereby the licensor receives
consideration, where such agreement does not qualify as a "sale" or "lease" or "rental"
agreement.
Lodging (Lodging Space) means any room or apartment in a hotel or any other provider of
rooms, trailer spaces, or other residential dwelling spaces; or the furnishings or services and
accommodations accompanying the use and possession of said dwelling space, including storage
or parking space for the property of said tenant.
Manufactured Buildings means a manufactured home, mobile home or factory built building,
as defined in A.R.S. Section 41 -2142.
Manufacturer " means a person engaged or continuing in the business of fabricating, producing,
or manufacturing products, wares, or articles for use from other forms of tangible personal
property, imparting to such new forms, qualities, properties, and combinations.
MEDICAL MARIJUANA" MEANS "MARIJUANA" USED FOR A "MEDICAL USE" AS
THOSE TERMS ARE DEFINED IN A.R.S. SECTION 36 -2801.
Mining and Metallurgicalal Supplies means all tangible personal property acquired by persons
engaged in activities defined in Section 8 -432 for such use. This definition shall not include:
janitorial equipment and supplies.
office equipment, office furniture, and office supplies.
motor vehicles licensed for use upon the highways of the State.
Modifier " means a person who reworks, changes, or adds to products, wares, or articles of
manufacture.
Nonprofit Entity means any entity organized and operated exclusively for charitable purposes,
or operated by the Federal Government, the State, or any political subdivision of the State.
Occupancy (of Real Property) means any occupancy or use, or any right to occupy or use, real
property including any improvements, rights, or interests in such property.
00027141.DOC /}
EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
Out -of -Town Sale means the sale of tangible personal property and job printing if all of the
following occur:
transference of title and possession occur without the Town; and
the stock from which such personal property was taken was not within the corporate limits of
the Town; and
the order is received at a permanent business location of the seller located outside the Town;
which location is used for the substantial and regular conduct of such business sales activity.
In no event shall the place of business of the buyer be determinative of the situs of the receipt
of the order.
For the purpose of this definition it does not matter that all other indicia of business occur within
the Town, including, but not limited to, accounting, invoicing, payments, centralized purchasing,
and supply to out -of -Town storehouses and out -of -Town retail branch outlets from a primary
storehouse within the Town.
Out -of -State Sale means the sale of tangible personal property and job printing if all of thegpppYJp
followin g occur:
The order is placed from without the State of Arizona; and
the property is delivered to the buyer at a location outside the State; and
the property is purchased for use outside the State.
Owner- Builder means an owner or lessor of real property who, by himself or by or through
others, constructs or has constructed or reconstructs or has reconstructed any improvement to
real property.
Person " means an individual, firm, partnership, joint venture, association, corporation, estate,
trust, receiver, syndicate, broker, the Federal Government, this State, or any political subdivision
or agency of this State. For the purposes of this Chapter, a person shall be considered a distinct
and separate person from any general or limited partnership or joint venture or other association
with which such person is affiliated. A subsidiary corporation shall be considered a separate
person from its parent corporation for purposes of taxation of transactions with its parent
corporation.
Prosthetic " means any of the following tangible personal property if such items are prescribed
or recommended by a licensed podiatrist, chiropractor, dentist, physician or surgeon, naturopath,
optometrist, osteopathic physician or surgeon, psychologist, hearing aid dispenser, physician
assistant, nurse practitioner or veterinarian:
0002714 1. DOC /}
EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
any man-made device for support or replacement of a part of the body, or to increase acuity
of one of the senses. Such items include: prescription eyeglasses; contact lenses; hearing
aids; artificial limbs or teeth; neck, back, arm, leg, or similar braces.
insulin, insulin syringes, and glucose test strips sold with or without a prescription.
hospital beds, crutches, wheelchairs, similar home health aids, or corrective shoes.
drugs or medicine, including oxygen.
equipment used to generate, monitor, or provide health support systems, such as respiratory
equipment, oxygen concentrator, dialysis machine.
durable medical equipment which has a Federal Health Care Financing Administration
common procedure code, is designated reimbursable by Medicare, can withstand repeated
use, is primarily and customarily used to serve a medical purpose, is generally not useful to a
person in the absence of illness or injury and is appropriate for use in the home.
7) UNDER NO CIRCUMSTANCES SHALL "PROSTHETIC" INCLUDE MEDICAL
MARIJUANA REGARDLESS OF WHETHER IT IS SOLD OR DISPENSED PURSUANT
TO A PRESCRIPTION RECOMMENDATION OR WRITTEN CERTIFICATION BY
ANY AUTHORIZED PERSON.
Qualifying Community Health Center
1) means an entity that is recognized as nonprofit under Section 501(c)(3) of the United
States Internal Revenue Code, that is a community- based, primary care clinic that has a
community -based board of directors and that is either:
a) the sole provider of primary care in the community.
b) a nonhospital affiliated clinic that is located in a federally designated medically
underserved area in this State.
2) includes clinics that are being constructed as qualifying community health centers.
Qualifying Health Care Organization means an entity that is recognized as nonprofit under
Section 501(c) of the United States Internal Revenue Code and that uses, saves or invests at least
eighty percent (80 %) of all monies that it receives from all sources each year only for health and
medical related educational and charitable services, as documented by annual financial audits
prepared by an independent certified public accountant, performed according to generally
accepted accounting standards and filed annually with the Arizona Department of Revenue.
Monies that are used, saved or invested to lease, purchase or construct a facility for health and
00027141.DOC /}
EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
medical related education and charitable services are included in the eighty percent (80 %)
requirement.
Qualifying Hospital means any of the following:
a licensed hospital which is organized and operated exclusively for charitable purposes, no
part of the net earnings of which inures to the benefit of any private shareholder or
individual.
a licensed nursing care institution or a licensed residential care institution or a residential care
facility operated in conjunction with a licensed nursing care institution or a licensed kidney
dialysis center, which provides medical services, nursing services or health related services
and is not used or held for profit.
a hospital, nursing care institution or residential care institution which is operated by the
federal government, this State or a political subdivision of this State.
a facility that is under construction and that on completion will be a facility under
subdivision (1), (2) or (3) of this paragraph.
Receipt (of Notice) y the Taxpayer means the earlier of actual receipt or the first attempted
delivery by certified United States mail to the taxpayer's address of record with the Tax
Collector.
Remediation " means those actions that are reasonable, necessary, cost - effective and technically
feasible in the event of the release or threat of release of hazardous substances into the
environment such that the waters of the State are or may be affected, such actions as may be
necessary to monitor, assess and evaluate such release or threat of release, actions of
remediation, removal or disposal of hazardous substances or taking such other actions as may be
necessary to prevent, minimize or mitigate damage to the public health or welfare or to the
waters of the State which may otherwise result from a release or threat of release of a hazardous
substance that will or may affect the waters of the State. Remediation activities include the use of
biostimulation with indigenous microbes and bioaugmentation using microbes that are
nonpathogenic, nonopportunistic and that are naturally occurring. Remediation activities may
include community information and participation costs and providing an alternative drinking
water supply.
Rental Equipment means tangible personal property sold, rented, leased, or licensed to
customers to the extent that the item is actually used by the customer for rental, lease, or license
to others; provided that:
the vendee is regularly engaged in the business of renting, leasing, or licensing such property
for a consideration; and
100027141.DOC /}
EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
the item so claimed as "rental equipment" is not used by the person claiming the exemption
for any purpose other than rental, lease, or license for compensation, to an extent greater than
fifteen percent (15 %) of its actual use.
Rental Supply means an expendable or nonexpendable repair or replacement part sold to
become part of "rental equipment ", provided that:
the documentation relating to each purchased item so claimed specifically itemizes to the
vendor the actual item of "rental equipment" to which the purchased item is intended to be
attached as a repair or replacement part; and
the vendee is regularly engaged in the business of renting, leasing, or licensing such property
for a consideration; and
the item so claimed as "rental equipment" is not used by the person claiming the exemption
for any purpose other than rental, lease, or license for compensation, to an extent greater than
fifteen percent (15 %) of its actual use.
ap irer means a person who restores or renews products, wares, or articles of manufacture.
Resides within the Town means in cases other than individuals, whose legal addresses are
determinative of residence, the engaging, continuing, or conducting of regular business activity
within the Town.
Restaurant " means any business activity where articles of food, drink, or condiment are
customarily prepared or served to patrons for consumption on or off the premises, also including
bars, cocktail lounges, the dining rooms of hotels, and all caterers. For the purposes of this
Chapter, a "fast food" business, which includes street vendors and mobile vendors selling in
public areas or at entertainment or sports or similar events, who prepares or sells food or drink
for consumption on or off the premises is considered a "restaurant ", and not a "retailer ".
Retail Sale (Sale at Retail) means the sale of tangible personal property, except the sale of
tangible personal property to a person regularly engaged in the business of selling such property.
Retailer " means any person engaged or continuing in the business of sales of tangible personal
property at retail.
Sale " means any transfer of title or possession, or both, exchange, barter, conditional or
otherwise, in any manner or by any means whatsoever, including consignment transactions and
auctions, of property for a consideration. "Sale" includes any transaction whereby the possession
of such property is transferred but the seller retains the title as security for the payment of the
price. "Sale" also includes the fabrication of tangible personal property for consumers who, in
whole or in part, furnish either directly or indirectly the materials used in such fabrication work.
00027141.DOC /}
EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
Solar Daylighting means a device that is specifically designed to capture and redirect the
visible portion of the solar beam, while controlling the infrared portion, for use in illuminating
interior building spaces in lieu of artificial lighting.
Solar Energy Device means a system or series of mechanisms designed primarily to provide
heating, to provide cooling, to produce electrical power, to produce mechanical power, to
provide solar daylighting or to provide any combination of the foregoing by means of collecting
and transferring solar generated energy into such uses either by active or passive means,
including wind generator systems that produce electricity. Solar energy systems may also have
the capability of storing solar energy for future use. Passive systems shall clearly be designed as
a solar energy device, such as a trombe wall, and not merely as a part of a normal structure, such
as a window.
Speculative Builder means either:
an owner - builder who sells or contracts to sell, at any time, improved real property (as
provided in Section 8 -416) consisting of:
A)( Icustom, model, or inventory homes, regardless of the stage of completion of such
homes; or
B)(b) residential or commercial lots without a structure; or
2) an owner - builder who sells or contracts to sell improved real property, other than
improved real property specified in subsection (1) above:
ftalprior to completion; or
B) the expiration of twenty -four (24) months after the improvements of the real
property sold are substantially complete.
Substantially Complete means the construction contracting or reconstruction contracting:
has passed final inspection or its equivalent; or
certificate of occupancy or its equivalent has been issued; or
is ready for immediate occupancy or use.
Su Tier" means any person who rents, leases, licenses, or makes sales of tangible personal
property within the Town, either directly to the consumer or customer or to wholesalers, jobbers,
fabricators, manufacturers, modifiers, assemblers, repairers, or those engaged in the business of
providing services which involve the use, sale, rental, lease, or license of tangible personal
property.
00027141.DOC /}
EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
Tax Collector means the Town Manager or his designee or agent for all purposes under this
Chapter.
Taxpayer " means any person liable for any tax under this Chapter.
Taxpayer Problem Resolution Officer means the individual designated by the Town to perform
the duties identified in Sections 8 -515 and 8 -516. In cities with a population of 50,000 or more,
the Taxpayer Problem Resolution Officer shall be an employee of the Town. In cities with a
population of less than 50,000, the Taxpayer Problem Resolution Officer need not be an
employee of the Town. Regardless of whether the Taxpayer Problem Resolution Officer is or is
not an employee of the Town, the Taxpayer Problem Resolution Officer shall have substantive
knowledge of taxation. The identity of and telephone number for the Taxpayer Problem
Resolution Officer can be obtained from the Tax Collector.
Telecommunication Service means any service or activity connected with the transmission or
relay of sound, visual image, data, information, images, or material over a communications
channel or any combination of communications channels.
Transient " means any person who either at the person's own expense or at the expense of
another obtains lodging space or the use of lodging space on a daily or weekly basis, or on any
other basis for less than thirty (30) consecutive days.
Utility Service means the producing, providing, or furnishing of electricity, electric lights,
current, power, gas (natural or artificial), or water to consumers or ratepayers
Section 2. Section 8 -415 of the Tax Code of the Town of Marana is amended to read:
Sec. 8 -415. Construction contracting: construction contractors.
a) The tax rate shall. be at an amount equal to four percent (4 %) of the gross income from
the business upon every construction contractor engaging or continuing in the business
activity of construction contracting within the Town.
1) However, gross income from construction contracting shall not include
charges related to groundwater measuring devices required by A.R.S. Section 45-
604.
2) (Reserved)
3) gross income from construction contracting shall not include gross income
from the sale of manufactured buildings taxable under Section 8 -427.
4) For taxable periods beginning from and after July 1, 2008, the portion of gross
proceeds of sales or gross income attributable to the actual direct costs of
providing architectural or engineering services that are incorporated in a contract
is not subject to tax under this Section. For the purposes of this subsection, "direct
costs" means the portion of the actual costs that are directly expended in
providing architectural or engineering services.
00027141.DOC /}
EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
b) Deductions and exemptions
1) Gross income derived from acting as a "subcontractor" shall be exempt from
the tax imposed by this Section.
2) All construction contracting gross income subject to the tax and not deductible
herein shall be allowed a deduction of thirty -five percent (35 %).
3) The gross proceeds of sales or gross income attributable to the purchase of
machinery, equipment or other tangible personal property that is exempt from or
deductible from privilege or use tax under:
A) Section 8 -465, subsections (g) and (p)
B) Section 8 -660, subsections (g) and (p)
shall be exempt or deductible, respectively, from the tax imposed by this
Section.
4) The gross proceeds of sales or gross income that is derived from a contract
entered into for the installation, assembly, repair or maintenance of income-
producing capital equipment, as defined in Section 8 -110, that is deducted from
the retail classification pursuant to Section 8- 465(g), that does not become a
permanent attachment to a building, highway, road, railroad, excavation or
manufactured building or other structure, project, development or improvement
shall be exempt from the tax imposed by this Section. If the ownership of the
realty is separate from the ownership of the income - producing capital equipment,
the determination as to permanent attachment shall be made as if the ownership
was the same. The deduction provided in this paragraph does not include gross
proceeds of sales or gross income from that portion of any contracting activity
which consists of the development of, or modification to, real property in order to
facilitate the installation, assembly, repair, maintenance or removal of the income-
producing capital equipment. For purposes of this paragraph, "permanent
attachment" means at least one of the following:
A) to be incorporated into real property.
B) to become so affixed to real property that it becomes part of the real
property.
C) to be so attached to real property that removal would cause substantial
damage to the real property from which it is removed.
5) The gross proceeds of sales or gross income received from a contract for the
construction of an environmentally controlled facility for the raising of poultry for
the production of eggs and the sorting, or cooling and packaging of eggs shall be
exempt from the tax imposed under this Section.
6) The gross proceeds of sales or gross income that is derived from the
installation, assembly, repair or maintenance of cleanrooms that are deducted
from the tax base of the retail classification pursuant to Section 8 -465, subsection
g) shall be exempt from the tax imposed under this Section.
7) The gross proceeds of sales or gross income that is derived from a contract
entered into with a person who is engaged in the commercial production of
livestock, livestock products or agricultural, horticultural, viticultural or
floricultural crops or products in this State for the construction, alteration, repair,
improvement, movement, wrecking or demolition or addition to or subtraction
00027141.DOC /}
EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
from any building, highway, road, excavation, manufactured building or other
structure, project, development or improvement used directly and primarily to
prevent, monitor, control or reduce air, water or land pollution shall be exempt
from the tax imposed under this Section.
8) The gross proceeds of sales or gross income received from a post construction
contract to perform post - construction treatment of real property for termite and
general pest control, including wood destroying organisms, shall be exempt from
tax imposed under this section.
9) Through December 31, 2009, the gross proceeds of sales or gross income
received from a contract for constructing any lake facility development in a
commercial enhancement reuse district that is designated pursuant to A.R.S. § 9-
499.08 if the contractor maintains the following records in a form satisfactory to
the Arizona Department of Revenue and to the Town:
A) The certificate of qualification of the lake facility development issued
by the Town pursuant to A.R.S. § 9- 499.08, subsection D.
B) All state and local transaction privilege tax returns for the period of
time during which the contractor received gross proceeds of sales or gross
income from a contract to construct a lake facility development in a
designated commercial enhancement reuse district, showing the amount
exempted from state and local taxation.
C) Any other information considered to be necessary.
10) Any amount attributable to development fees that are incurred in relation to
the construction, development or improvement of real property and paid by the
taxpayer as defined in the model city tax code or by a contractor providing
services to the taxpayer. For the purposes of this paragraph:
A) the attributable amount shall not exceed the value of the development
fees actually imposed.
B) the attributable amount is equal to the total amount of development
fees paid by the taxpayer or by a contractor providing services to the
taxpayer and the total development fees credited in exchange for the
construction of, contribution to or dedication of real property for providing
public infrastructure, public safety or other public services necessary to
the development. The real property must be the subject of the development
fees.
C) "development fees" means fees imposed to offset capital costs of
providing public infrastructure, public safety or other public services to a
development and authorized pursuant to A.R.S. Section 9- 463.05, A.R.S.
Section 11 -1102 or A.R.S. Title 48 regardless of the jurisdiction to which
the fees are paid.
11) For taxable periods beginning from and after July 1, 2008 and ending before
January 1, 20442017 the gross proceeds of sales or gross income derived from a
contract to provide and install a solar energy device. The contractor shall register
with the department of revenue as a solar energy contractor. By registering, the
contractor acknowledges that it will make its books and records relating to sales
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EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
of solar energy devices available to the department of revenue and the Town, as
applicable, for examination.
c) " Subcontractor " means a construction contractor performing work for either:
1) a construction contractor who has provided the subcontractor with a written
declaration that he is liable for the tax for the project and has provided the
subcontractor his Town Privilege License number.
2) an owner - builder who has provided the subcontractor with a written
declaration that:
A) the owner - builder is improving the property for sale; and
B) the owner - builder is liable for the tax for such construction contracting
activity; and
C) the owner - builder has provided the contractor his Town Privilege
License number.
3) a person selling new manufactured buildings who has provided the
subcontractor with a written declaration that he is liable for the tax for the site
preparation and set -up; and provided the subcontractor his Town Privilege
License number.
Subcontractor also includes a construction contractor performing work for another subcontractor
as defined above.
Section 3. Section 8 -416 of the Tax Code of the Town of Marana is amended to read:
Sec. 8 -416. Construction contracting: speculative builders.
a) The tax shall be equal to four percent (4 %) of the gross income from the business
activity upon every person engaging or continuing in business as a speculative builder
within the Town.
1) The gross income of a speculative builder considered taxable shall include the
total selling price from the sale of improved real property at the time of closing of
escrow or transfer of title.
2) " Improved Real Propert y " means any real property:
A) upon which a structure has been constructed; or
B) where improvements have been made to land containing no structure
such as paving or landscaping); or
C) which has been reconstructed as provided by Regulation; or
D) where water, power, and streets have been constructed to the property
line.
3) " Sale of Improved Real Propert X " includes any form of transaction, whether
characterized as a lease or otherwise, which in substance is a transfer of title of, or
equitable ownership in, improved real property and includes any lease of the
property for a term of thirty (30) years or more (with all options for renewal being
included as a part of the term). In the case of multiple unit projects, "sale" refers
to the sale of the entire project or to the sale of any individual parcel or unit.
4) " Partially Improved Residential Real Propert X ", as used in this Section, means
any improved real property, as defined in subsection (a)(2) above, being
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EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
developed for sale to individual homeowners, where the construction of the
residence upon such property is not substantially complete at the time of the sale.
b) Exclusions
1) In cases involving reconstruction contracting, the speculative builder may
exclude from gross income the prior value allowed for reconstruction contracting
in determining his taxable gross income, as provided by Regulation.
2) Neither the cost nor the fair market value of the land which constitutes part of
the improved real property sold may be excluded or deducted from gross income
subject to the tax imposed by this Section.
3) (Reserved)
4) A speculative builder may exclude gross income from the sale of partially
improved residential real property as defined in (a)(4) above to another
speculative builder only if all of the following conditions are satisfied:
A) The speculative builder purchasing the partially improved residential
real property has a valid Town privilege license for construction
contracting as a speculative builder; and
B) At the time of the transaction the purchaser provides the seller with a
properly completed written declaration that the purchaser assumes liability
for and will pay all privilege taxes which would otherwise be due the
Town at the time of sale of the partially improved residential real property;
and
C) The seller also:
i) maintains proper records of such transactions in a manner
similar to the requirements provided in this chapter relating to sales
for resale; and
ii) retains a copy of the written declaration provided by the buyer
for the transaction; and
iii) is properly licensed with the Town as a speculative builder and
provides the Town with the written declaration attached to the
Town privilege tax return where he claims the exclusion.
5) For taxable periods beginning from and after July 1, 2008, the portion of gross
proceeds of sales or gross income attributable to the actual direct costs of
providing architectural or engineering services that are incorporated in a contract
is not subject to tax under this section. For the purposes of this subsection, "direct
costs" means the portion of the actual costs that are directly expended in
providing architectural or engineering services.
c) Tax liability for speculative builders occurs at close of escrow or transfer of title,
whichever occurs earlier, and is subject to the following provisions, relating to
exemptions, deductions and tax credits:
1) Exemptions
A) The gross proceeds of sales or gross income attributable to the
purchase of machinery, equipment or other tangible personal property that
is exempt from or deductible from privilege or use tax under:
i) Section 8 -465, subsections (g) and (p)
ii) Section 8 -660, subsections (g) and (p)
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EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
shall be exempt or deductible, respectively, from the tax imposed
by this Section.
B) The gross proceeds of sales or gross income received from a contract
for the construction of an environmentally controlled facility for the
raising of poultry for the production of eggs and the sorting, or cooling
and packaging of eggs shall be exempt from the tax imposed under this
Section.
C) The gross proceeds of sales or gross income that is derived from the
installation, assembly, repair or maintenance of cleanrooms that are
deducted from the tax base of the retail classification pursuant to Section
8 -465, subsection (g) shall be exempt from the tax imposed under this
section.
D) The gross proceeds of sales or gross income that is derived from a
contract entered into with a person who is engaged in the commercial
production of livestock, livestock products or agricultural, horticultural,
viticultural or floricultural crops or products in this state for the
construction, alteration, repair, improvement, movement, wrecking or
demolition or addition to or subtraction from any building, highway, road,
excavation, manufactured building or other structure, project, development
or improvement used directly and primarily to prevent, monitor, control or
reduce air, water or land pollution shall be exempt from the tax imposed
under this Section.
E) any amount attributable to development fees that are incurred in
relation to the construction, development or improvement of real property
and paid by the taxpayer as defined in the model city tax code or by a
contractor providing services to the taxpayer shall be exempt from the tax
imposed under this section. For the purposes of this paragraph:
i) the attributable amount shall not exceed the value of the
development fees actually imposed.
ii) the attributable amount is equal to the total amount of
development fees paid by the taxpayer or by a contractor providing
services to the taxpayer and the total development fees credited in
exchange for the construction of, contribution to or dedication of
real property for providing public infrastructure, public safety or
other public services necessary to the development. The real
property must be the subject of the development fees.
iii) "development fees" means fees imposed to offset capital costs
of providing public infrastructure, public safety or other public
services to a development and authorized pursuant to A.R.S.
Section 9- 463.05, A.R.S. Section 11 -1102 or A.R.S. Title 48
regardless of the jurisdiction to which the fees are paid.
2) Deductions.
A) All amounts subject to the tax shall be allowed a deduction in the
amount of thirty -five percent (35 %).
B) The gross proceeds of sales or gross income that is derived from a
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EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
contract entered into for the installation, assembly, repair or maintenance
of income - producing capital equipment, as defined in Section 8 -110, that
is deducted from the retail classification pursuant to Section 8- 465(g), that
does not become a permanent attachment to a building, highway, road,
railroad, excavation or manufactured building or other structure, project,
development or improvement shall be exempt from the tax imposed by
this Section. If the ownership of the realty is separate from the ownership
of the income - producing capital equipment, the determination as to
permanent attachment shall be made as if the ownership was the same.
The deduction provided in this paragraph does not include gross proceeds
of sales or gross income from that portion of any contracting activity
which consists of the development of, or modification to, real property in
order to facilitate the installation, assembly, repair, maintenance or
removal of the income - producing capital equipment. For purposes of this
paragraph, "permanent attachment" means at least one of the following:
i) to be incorporated into real property.
ii) to become so affixed to real property that it becomes part of the
real property.
iii) to be so attached to real property that removal would cause
substantial damage to the real property from which it is removed.
C) For taxable periods beginning from and after July 1, 2008 and ending
before January 1, 281-1 - 2017 , the gross proceeds of sales or gross income
derived from a contract to provide and install a solar energy device. The
contractor shall register with the department of revenue as a solar energy
contractor. By registering, the contractor acknowledges that it will make
its books and records relating to sales of solar energy devices available to
the department of revenue and the Town, as applicable, for examination.
3) Tax credits
The following tax credits are available to owner - builders or speculative builders,
not to exceed the tax liability against which such credits apply, provided such
credits are documented to the satisfaction of the tax collector:
A) A tax credit equal to the amount of Town privilege or use tax, or the
equivalent excise tax, paid directly to a taxing jurisdiction or as a
separately itemized charge paid directly to the vendor with respect to the
tangible personal property incorporated into the said structure or
improvement to real property undertaken by the owner - builder or
speculative builder.
B) A tax credit equal to the amount of privilege taxes paid to this Town,
or charged separately to the speculative builder, by a construction
contractor, on the gross income derived by said person from the
construction of any improvement to the real property.
C) No credits provided herein may be claimed until such time that the
gross income against which said credits apply is reported.
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EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
Section 4. Section 8 -417 of the Tax Code of the Town of Marana is amended to read:
Sec. 8 -417. Construction contracting: owner - builders who are not speculative builders.
a) At the expiration of twenty -four (24) months after improvement to the property is
substantially complete, the tax liability for an owner - builder who is not a speculative
builder shall be at an amount equal to four percent (4 %) of:
1) the gross income from the activity of construction contracting upon the real
property in question which was realized by those construction contractors to
whom the owner - builder provided written declaration that they were not
responsible for the taxes as prescribed in subsection 8- 415(c)(2); and
2) the purchase of tangible personal property for incorporation into any
improvement to real property, computed on the sales price.
b) For taxable periods beginning from and after July 1, 2008, the portion of gross
proceeds of sales or gross income attributable to the actual direct costs of providing
architectural or engineering services that are incorporated in a contract is not subject to
tax under this section. For the purposes of this subsection, "direct costs" means the
portion of the actual costs that are directly expended in providing architectural or
engineering services.
c) The tax liability of this Section is subject to the following provisions, relating to
exemptions, deductions and tax credits:
1) Exemptions
A) The gross proceeds of sales or gross income attributable to the
purchase of machinery, equipment or other tangible personal property that
is exempt from or deductible from privilege or use tax under:
i) Section 8 -465, subsections (g) and (p)
ii) Section 8 -660, subsections (g) and (p)
shall be exempt or deductible, respectively, from the tax imposed
by this Section.
B) The gross proceeds of sales or gross income received from a contract
for the construction of an environmentally controlled facility for the
raising of poultry for the production of eggs and the sorting, or cooling
and packaging of eggs shall be exempt from the tax imposed under this
Section.
C) The gross proceeds of sales or gross income that is derived from the
installation, assembly, repair or maintenance of cleanrooms that are
deducted from the tax base of the retail classification pursuant to Section
8 -465, subsection (g) shall be exempt from the tax imposed under this
Section.
D) The gross proceeds of sales or gross income that is derived from a
contract entered into with a person who is engaged in the commercial
production of livestock, livestock products or agricultural, horticultural,
viticultural or floricultural crops or products in this state for the
construction, alteration, repair, improvement, movement, wrecking or
demolition or addition to or subtraction from any building, highway, road,
excavation, manufactured building or other structure, project, development
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EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
or improvement used directly and primarily to prevent, monitor, control or
reduce air, water or land pollution shall be exempt from the tax imposed
under this Section.
E) Any amount attributable to development fees that are incurred in
relation to the construction, development or improvement of real property
and paid by the taxpayer as defined in the model city tax code or by a
contractor providing services to the taxpayer shall be exempt from the tax
imposed under this section. For the purposes of this paragraph:
i) the attributable amount shall not exceed the value of the
development fees actually imposed.
ii) the attributable amount is equal to the total amount of
development fees paid by the taxpayer or by a contractor providing
services to the taxpayer and the total development fees credited in
exchange for the construction of, contribution to or dedication of
real property for providing public infrastructure, public safety or
other public services necessary to the development. The real
property must be the subject of the development fees.
iii) "development fees" means fees imposed to offset capital costs
of providing public infrastructure, public safety or other public
services to a development and authorized pursuant to A.R.S.
Section 9- 463.05, A.R.S. Section 11 -1102 or A.R.S. Title 48
regardless of the jurisdiction to which the fees are paid.
2) Deductions.
A) All amounts subject to the tax shall be allowed a deduction in the
amount of thirty -five percent (35 %).
B) The gross proceeds of sales or gross income that is derived from a
contract entered into for the installation, assembly, repair or maintenance
of income - producing capital equipment, as defined in Section 8 -110, that
is deducted from the retail classification pursuant to Section 8- 465(g), that
does not become a permanent attachment to a building, highway, road,
railroad, excavation or manufactured building or other structure, project,
development or improvement shall be exempt from the tax imposed by
this Section. If the ownership of the realty is separate from the ownership
of the income - producing capital equipment, the determination as to
permanent attachment shall be made as if the ownership was the same.
The deduction provided in this paragraph does not include gross proceeds
of sales or gross income from that portion of any contracting activity
which consists of the development of, or modification to, real property in
order to facilitate the installation, assembly, repair, maintenance or
removal of the income - producing capital equipment. For purposes of this
paragraph, "permanent attachment" means at least one of the following:
i) to be incorporated into real property.
ii) to become so affixed to real property that it becomes part of the
real property.
iii) to be so attached to real property that removal would cause
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EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
substantial damage to the real property from which it is removed.
C) For taxable periods beginning from and after July 1, 2008 and ending
before January 1, 2042017 the gross proceeds of sales or gross income
derived from a contract to provide and install a solar energy device. The
contractor shall register with the department of revenue as a solar energy
contractor. By registering, the contractor acknowledges that it will make
its books and records relating to sales of solar energy devices available to
the department of revenue and the Town, as applicable, for examination.
3) Tax credits.
The following tax credits are available to owner - builders and speculative builders,
not to exceed the tax liability against which such credits apply, provided such
credits are documented to the satisfaction of the tax collector:
A) A tax credit equal to the amount of Town privilege or use tax, or the
equivalent excise tax, paid directly to a taxing jurisdiction or as a
separately itemized charge paid directly to the vendor with respect to the
tangible personal property incorporated into the said structure or
improvement to real property undertaken by the owner - builder or
speculative builder.
B) A tax credit equal to the amount of privilege taxes paid to this Town,
or charged separately to the speculative builder, by a construction
contractor, on the gross income derived by said person from the
construction of any improvement to the real property.
C) No credits provided herein may be claimed until such time that the
gross income against which said credits apply is reported.
d) The limitation period for the assessment of taxes imposed by this Section is measured
based upon when such liability is reportable, that is, in the reporting period that
encompasses the twenty -fifth (25th) month after said unit or project was substantially
complete. Interest and penalties, as provided in Section 8 -540, will be based on reportable
date.
e) (Reserved)
Section 5. 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 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 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
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EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
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)
1) (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.
o) 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, jail or 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
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EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
rental of individual rental units subject to statutory or regulatory "low- income unit" rent
restrictions similar to IRC 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.
S THE GROSS PROCEEDS OF SALES OR GROSS INCOME DERIVED FROM A
COMMERCIAL LEASE IN WHICH A RECIPROCAL INSURER OR A
CORPORATION LEASES REAL PROPERTY TO AN AFFILIATED
CORPORATION. FOR THE PURPOSES OF THIS PARAGRAPH:
1 "AFFILIATED CORPORATION" MEANS A CORPORATION THAT
MEETS ONE OF THE FOLLOWING CONDITIONS:
A) THE CORPORATION OWNS OR CONTROLS AT LEAST
EIGHTY PER CENT OF THE LESSOR.
B) THE CORPORATION IS AT LEAST EIGHTY PER CENT OWNED
OR CONTROLLED BY THE LESSOR.
C) THE CORPORATION IS AT LEAST EIGHTY PER CENT OWNED
OR CONTROLLED BY A CORPORATION THAT ALSO OWNS OR
CONTROLS AT LEAST EIGHTY PER CENT OF THE LESSOR.
D) THE CORPORATION IS AT LEAST EIGHTY PER CENT OWNED
OR CONTROLLED BY A CORPORATION THAT IS AT LEAST
EIGHTY PER CENT OWNED OR CONTROLLED BY A
RECIPROCAL INSURER.
2) FOR THE PURPOSES OF SUBSECTION (1), OWNERSHIP AND
CONTROL ARE DETERMINED BY REFERENCE TO THE VOTING
SHARES OF A CORPORATION.
3) "RECIPROCAL INSURER" HAS THE SAME MEANING AS
PRESCRIBED IN A.R.S. SECTION 20 -762.
Section 6. Section 8 -595 of the Tax Code of the Town of Marana is amended to read:
Sec. 8 -595. Collection of taxes when there is succession in and/or cessation of business.
a) In addition to any remedy provided elsewhere in this Town Code that may apply, the
Tax Collector may apply the provisions of subsections (b) through (d) below concerning
the collection of taxes when there is succession in and /or cessation of business.
b) The taxes imposed by this Chapter are a lien on the property of any person subject to
this Chapter who sells his business or stock of goods, or quits his business, if the person
fails to make a final return and payment of the tax within fifteen (15) days after selling or
quitting his business.
c) Any person who purchases, or who acquires by foreclosure, by sale under trust deed
or warranty deed in lieu of foreclosure, or by any other method, improved real property
or a portion of improved real property for which the Privilege Tax imposed by this
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EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
Chapter has not been paid shall be responsible for payment of such tax as a speculative
builder or owner builder, as provided in Sections 8 -416 and 8 -417.
1) ANY PERSON WHO IS A CREDITOR OR AN AFFILIATE OF
CREDITOR, WHO ACQUIRES IMPROVED REAL PROP DIRECTLY
OR INDIRECTLY FROM THE CREDITOR'S DEBTOR BY ANY MEANS
SET FORTH IN THIS SUBSECTION SHALL PAY THE TAX BASED ON
THE AMOUNT RECEIVED BY THE CREDITOR OR ITS AFFILIATE IN A
SUBSEQUENT SALE OF SUCH IMPROVED REAL PROPERTY TO A
PARTY UNRELATED TO THE CREDITOR REGARDLESS OF WHEN
SUCH SUBSEQUENT SALE TAKES PLACE. SUCH TAX SHALL BE DUE
IN THE MONTH FOLLOWING THE MONTH IN WHICH THE SALE OF
THE IMPROVED REAL PROPERTY BY THE CREDITOR OR ITS
AFFILIATE OCCURS NOTWITHSTANDING THE FOREGOING IF THE
REAL PROPERTY MEETS THE DEFINITION OF PARTIALLY IMPROVED
RESIDENTIAL REAL PROPERTY IN SECTION 8- 416(A)(4) AND ALL OF
THE REQUIREMENTS OF SECTION 8-416(B)(4 ARE MET BY THE
PARTIES TO THE SUBSEQUENT SALE TRANSACTION, THEN THE TAX
SHALL NOT APPLY TO THE SUBSEQUENT SALE.
2) IN THE EVENT A CREDITOR OR ITS AFFILIATE USES THE
ACQUIRED IMPROVED REAL PROPERTY FOR ANY BUSINESS
PURPOSE OTHER THAN OPERATING THE PROPERTY IN THE MANNER
IN WHICH IT WAS OPERATED OR WAS INTENDED TO BE OPERATED
BEFORE THE ACQUISITION OR IN ANY OTHER MANNER UNRELATED
TO SELLING THE PROPERTY THE TAX SHALL BE DUE. THE GROSS
INCOME UPON WHICH THE TAX SHALL BE DETERMINED PURSUANT
TO SECTIONS 8 -416 AND 8 -417 SHALL BE THE FAIR MARKET VALUE
OF THE IMPROVED REAL PROPERTY AS OF THE DATE OF
ACQUISITION. THE TAX SHALL BE DUE IN THE MONTH FOLLOWING
THE MONTH IN WHICH SUCH FIRST BUSINESS USE OCCURS. WHEN
APPLICABLE THE CREDIT BID SHALL BE DEEMED TO BE THE FAIR
MARKET VALUE OF THE PROPERTY AS OF THE DATE OF
ACQUI SITION.
3) ONCE THE SUBSEQUENT SALE BY THE CREDITOR OR ITS
AFFILIATE H AS OCCURRED AND THE CREDITOR OR ITS AFFILIATE
HAS PAID THE TAX DUE FROM IT PURSUANT TO THIS SUBSECTION
NEITHER THE CREDITOR NOR ITS AFFILIATE NOR ANY FUTURE
OWNER SHALL BE LIABLE FOR ANY OUTSTANDING TAX PENALTIES
OR INTEREST THAT MAY CONTINUE TO BE DUE FROM THE DEBTOR
BASED ON THE TRANSFER FROM THE DEBTOR TO THE CREDITOR OR
ITS AFFILIATE.
4) IF THE TAX LIABILITY IMPOSED BY EITHER SECTION 8 -416 OR
SECTION 8 -417 ON THE TRANSFER OF THE IMPROVED REAL
PROPERTY TO THE CREDITOR OR ITS AFFILIATE OR ANY PART
THEREOF IS PAID TO THE TAX COLLECTOR BY THE DEBTOR
SUBSEQUENT TO PAYMENT OF THE TAX BY THE CREDITOR OR ITS
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EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
AFFILIATE THE AMOUNT SO PAID MAY CONSTITUTE A CREDIT AS
EQUITABLY DETERMINED BY THE TAX COLLECTOR IN GOOD FAITH,
AGAINST THE TAX IMPOSED ON THE CREDITOR OR ITS AFFILIATE BY
EITHER PARAGRAPH 1 OR PARAGRAPH 2 OF THIS SUBSECTION.
5) NOTWITHSTANDING ANYTHING IN THIS CHAPTER TO THE
CONTRARY IF A CREDITOR OR ITS AFFILIATE IS SUBJECT TO TAX AS
DESCRIBED IN PARAGRAPH 1 OR PARAGRAPH 2 OF THIS
SUBSECTION AND SUCH CREDITOR OR AFFILIATE HAS NOT
PREVIOUSLY BEEN REQUIRED TO BE LICENSED,, SUCH CREDITOR OR
AFFILIATE SHALL BECOME LICENSED NO LATER THAN THE DATE
ON WHICH THE TAX IS DUE.
d) A person's successors or assignees shall withhold from the purchase money an
amount sufficient to cover the taxes required to be paid, and interest or penalties due and
payable, until the former owner produces a receipt from the Tax Collector showing that
all Town tax has been paid or a certificate stating that no amount is due as then shown by
the records of the Tax Collector. The Tax Collector shall respond to a request from the
seller for a certificate within fifteen (15) days by either providing the certificate or a
written notice stating why the certificate cannot be issued.
1) If a subsequent audit shows a deficiency arising before the sale of the
business, the deficiency is an obligation of the seller and does not constitute a
liability against a buyer who has received a certificate from the Tax Collector.
2) If the purchaser of a business or stock of goods fails to obtain a certificate as
provided by this Section, he is personally liable for payment of the amount of
taxes required to be paid by the former owner on account of the business so
purchased, with interest and penalties accrued by the former owner or assignees.
Section 7. Section 8 -660 of the Tax Code of the Town of Marana is amended to read:
Sec. 8 -660. Use tax: exemptions.
The storage or use in this Town of the following tangible personal property is exempt from the
Use Tax imposed by this Article:
a) tangible personal property brought into the Town by an individual who was not a
resident of the Town at the time the property was acquired for his own use, if the first
actual use of such property was outside the Town, unless such property is used in
conducting a business in this Town.
b) tangible personal property, the value of which does not exceed the amount of one
thousand dollars ($1,000) per item, acquired by an individual outside the limits of the
Town for his personal use and enjoyment.
c) charges for delivery, installation, or other customer services, as prescribed by
Regulation.
d) charges for repair services, as prescribed by Regulation.
e) separately itemized charges for warranty, maintenance, and service contracts.
f) prosthetics.
g) income - producing capital equipment.
h) rental equipment and rental supplies.
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EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
i) mining and metallurgical supplies.
0) motor vehicle fuel and use fuel which are used upon the highways of this State and
upon which a tax has been imposed under the provisions of Article I or II, Chapter 16,
Title 28, Arizona Revised Statutes.
k) tangible personal property purchased by a construction contractor, but not an owner-
builder, when such person holds a valid Privilege License for engaging or continuing in
the business of construction contracting, and where the property acquired is incorporated
into any structure or improvement to real property in fulfillment of a construction
contract.
1) sales of motor vehicles to nonresidents of this State for use outside this State if the
vendor ships or delivers the motor vehicle to a destination outside this State.
m) tangible personal property which directly enters into and becomes an ingredient or
component part of a product sold in the regular course of the business of job printing,
manufacturing, or publication of newspapers, magazines or other periodicals. Tangible
personal property which is consumed or used up in a manufacturing, job printing,
publishing, or production process is not an ingredient nor component part of a product.
n) rental, leasing, or licensing for use of film, tape, or slides by a theater or other person
taxed under Section 8 -410, or by a radio station, television station, or subscription
television system.
o) food served to patrons for a consideration by any person engaged in a business
properly licensed and taxed under Section 8 -455, but not food consumed by owners,
agents, or employees of such business.
p) tangible personal property acquired by a qualifying hospital, qualifying community
health center or a qualifying health care organization, except when the property is in fact
used in activities resulting in gross income from unrelated business income as that term is
defined in 26 U.S.C. Section 512.
q) food for home consumption.
r) (Reserved)
1) (Reserved)
2) (Reserved)
3) (Reserved)
4) (Reserved)
s) groundwater measuring devices required by A.R.S. Section 45 -604.
t) (Reserved)
u) aircraft acquired for use outside the State, as prescribed by Regulation.
v) sales of food products by producers as provided for by A.R.S. Sections 3 -561, 3 -562
and 3 -563.
w) (Reserved)
x) (Reserved)
y) Tangible personal property donated to an organization or entity qualifying as an
exempt organization under 26 U.S.C. Section 501(c)(3); if and only if:
1) the donor is engaged or continuing in a business activity subject to a tax
imposed by Article IV; and
2) the donor originally purchased the donated property for resale in the ordinary
course of the donor's business; and
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EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
3) the donor obtained from the donee a letter or other evidence satisfactory to the
Tax Collector of qualification under 26 U.S.C. Section 501(c)(3) from the Internal
Revenue Service or other appropriate federal agency; and
4) the donor maintains, and provides upon demand, such evidence to the Tax
Collector, in a manner similar to other documentation required under Article III.
z) (Reserved)
aa) tangible personal property used in remediation contracting as defined in Section 8-
100 and Regulation 8- 100.5.
bb) materials that are purchased by or for publicly funded libraries including school
district libraries, charter school libraries, community college libraries, state university
libraries or federal, state, county or municipal libraries for use by the public as follows:
1) printed or photographic materials.
2) electronic or digital media materials.
cc) food, beverages, condiments and accessories used for serving food and beverages by
a commercial airline, as defined in A.R.S. § 42- 5061(A)(49), that serves the food and
beverages to its passengers, without additional charge, for consumption in flight. For the
purposes of this subsection, "accessories" means paper plates, plastic eating utensils,
napkins, paper cups, drinking straws, paper sacks or other disposable containers, or other
items which facilitate the consumption of the food.
dd) wireless telecommunication equipment that is held for sale or transfer to a customer
as an inducement to enter into or continue a contract for telecommunication services that
are taxable under Section 8 -470.
ee) (Reserved)
ff) alternative fuel as defined in A.R.S. § 1 -215, by a used oil fuel burner who has
received a Department of Environmental Quality permit to burn used oil or used oil fuel
under A.R.S. § 49 -426 or § 49 -480.
gg) food, beverages, condiments and accessories purchased by or for a public
educational entity, pursuant to any of the provisions of Title 15, Arizona Revised
Statutes; to the extent such items are to be prepared or served to individuals for
consumption on the premises of a public educational entity during school hours. For the
purposes of this subsection, "accessories" means paper plates, plastic eating utensils,
napkins, paper cups, drinking straws, paper sacks or other disposable containers, or other
items which facilitate the consumption of the food.
hh) personal hygiene items purchased by a person engaged in the business of and subject
to tax under Section 8 -444 of this code if the tangible personal property is furnished
without additional charge to and intended to be consumed by the person during his
occupancy.
ii) the diversion of gas from a pipeline by a person engaged in the business of operating
a natural or artificial gas pipeline, for the sole purpose of fueling compressor equipment
to pressurize the pipeline, is not a sale of the gas to the operator of the pipeline.
Oj) food, beverages, condiments and accessories purchased by or for a nonprofit
charitable organization that has qualified as an exempt organization under 26 U.S.0
Section 501(c)(3) and regularly serves meals to the needy and indigent on a continuing
basis at no cost. For the purposes of this subsection, "accessories" means paper plates,
plastic eating utensils, napkins, paper cups, drinking straws, paper sacks or other
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EXHIBIT A TO MARANA RESOLUTION NO. 2011 -71
disposable containers, or other items which facilitate the consumption of the food.
kk) sales of motor vehicles that use alternative fuel if such vehicle was manufactured as
a diesel fuel vehicle and converted to operate on alternative fuel and sales of equipment
that is installed in a conventional diesel fuel motor vehicle to convert the vehicle to
operate on an alternative fuel, as defined in A.R.S. § 1 -215.
LL) THE STORAGE USE OR CONSUMPTION OF TANGIBLE PERSONAL
PROPERTY IN THE CITY OR TOWN BY A SCHOOL DISTRICT OR CHARTER
SCHOOL.
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