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Home My WebLink AboutOrdinance 2015.011 Amending Town Tax CodeM F. ANN ROD R I GUE Z, RECORDER Recorded By: KMS DEPUTY RECORDER 4935 SMARA TOWN OF MARANA PICKUP 20151210123 3 05/01/2015 11:00 $7.00 o� P� V Al I27�� SEQUENCE: NO. PAGES: ORD IN PICK UP AMOUNT PAID: MARANA ORDINANCE NO. 2015,011 RELATING TO TRANSACTION PRIVILEG E TAX; AMENDING rrHE TOWN T AX CODE BY INCREASING TH E TAX RATE ON CERTAIN ACTIVITIES BY ONE -HALF CENT FOR THE DESIGN AND CONSTRUCTION, AND FIXTURES, FURNITURE AND EQUIPMENT, FOR A NEW POLICE DEPARTMENT BUILDING; AMENDING SECTIONS 8 -460 (RETAIL SALES; MEASURE OF TAX; BURDEN OF PROOF; EXCLUSIONS) AND 8 - (USE TAX: IMPOSITION OF TAX; PRESUMPTION) OF THE TOWN TAX CODE BY ADOPTING LOCAL OPTION V OF THE MODEL CITY TAX CODE ESTABLISHING A TWO - TIERED TAX STRUCTURI __4 FOR CERTAIN SALES/PURCHASES; IASES; SETTING A SUNSET DATE FOR THE INCREASED TAX RATE; AND DESIGNATING AN EFFECTIVE DATE WH E REAS A.R.S. §42 -6002 provides a procedure for the levy of transaction privilege taxes b y a city or town; and WHEREAS .A. R. S. §9-240 provides that the Town Council shall have control of the finances of the town; and WHERE AS the Town Council has adopted the Model City 'Fax Code as defined by A.R.S. §42 -6051; and WHEREAS the Model City Tax Code includes an optional Local Option V establishing a two - tiered tax structure for certain sales /purchases; and WHEREAS the Town Council adopted title 8 of the Mar ana Town Code, adopting the tax code of the Town of Marana ( "Town Tax Code ") and any amendments to it via ordinance No. 96.03; and WHEREAS the Town Council finds that it is in the best interests of the community to amend the Town Tax Code to adopt a dedicated one-half cent sales tax for the design and construction, and fixture's, furniture and equipment, for a new police department building, and to adopt Local Option V of the Model City Tax Code pursuant to the terms of this ordinance. NOW rI "HEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE J`OWN OF MARANA, ARIZONA, AS FOLLOWS: SECTION 1. The tax rate for all activities taxed in the "Town 'Fax Code, except those activi- ties listed in this section, is hereby increased by one -half cent. The tax rate in each of the following sections of the Town Tax Code shall not be increased pursuant to this ordinance: A. Construction Contracting under Town Tax Code Sections 8 -415, 8-416, 8 -417 B. Hotel /Motel -- Additional Tax under Town Tax Code Section 5447 Manana Ordinanc e No. 2015,011 C. Mining under , town Tax Code Section 8 -432 SECTION 2. The Town hereby adopts Local option v of the Model City Tax. Code as fol- lows: A. Section 8 -460 of the Town Tax Code (Retail sales; measure of tax; burden of proof; ex- clusions) is hereby amended to add paragraph (d) as follows: Sec. 8 -460. Retail sales: measure of tax; burden of proof; exclusions. [paragraphs (a) through (c) remain unchanged] (d) Notwithstanding the provisions of subsection (a) above, when the gross income from the sale of a single item of tangible personal property exceeds five thousand dollars ($5,000.00), the two and one -half percent (2.5 %) tax rate shall apply to the first $5,000.00. Above $5,000.00, the measure of tax shall be at a rate of two percent (2 %). [paragraphs (e) through (g) remain unchanged] B. Section 8 -6 10 of the Town Tax Code (Use tax: imposition of tax; presumption) is hereby amended to add paragraph (e) as follows: Sec. 8 -610. Use tax: imposition of tax; presumption. [paragraphs (a) through (d) remain unchanged] (e) Notwithstanding the provisions of subsection (a) above, when the amount subject to the tax for any single item of tangible personal property exceeds five thousand dollars ($5,000.00), the two and one -half percent (2.5 %) tax rate shall apply to the first $5,000.00. Above $5,000.00, the measure of tax shall be at a rate of two percent (2 %). SI- CTION' 3 . When the Town has collected $18,000,000 pursuant to the sales tax increase set forth in Section 1 of this ordinance, the Finance Director shall notify the Arizona Department of Revenue to cease collection of the increase at the Earliest opportunity, in accordance with legal and administrative requirements then in effect. SECTION 4. The Town shall establish a separate fund for the design and construction, and fixtures, furniture and equipment, for the new police department building and the proceeds from the tax increase adopted by this ordinance shall be placed in this newly established fund. If the Town collects more money pursuant to the tax increase adopted by this ordinance than is necessary for the design and construction, and fixtures, furniture and equipment, for the new police department build - ing, the Town shall use the excess proceeds for other costs related to the new police building, includ- ing but not limited to, operating costs, landscaping, and design and construction of drainage im- provements. SECTION 5. The various town officers and employees are authorized and directed to perform all acts necessary or desirable to give effect to this ordinance. SECTION 6. All ordinances, resolutions, or motions and parts of ordinances, resolutions, or motions of the Council in conflict with the provisions of this ordinance are hereby repealed, effective as of the effective date of this ordinance. -2- Marana Ordinance No. 2015.011 SECTION 7. If an section, subsection, sentence, clause, phrase or portion of this ordinance is for an reason held to be invalid or unconstitutional b the decision of an court of competent j u- risdiction, the decision shall not affect the validit of the remainin portions of this ordinance. SECTION 8. This ordinance shall become effective on hl 1, 2015. PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 28th da of April, 2015. ATTEST: o el C. o nson, Town Clerk !� WN 7N Ma Ed Monea 7 9 "A 7 N 3 Marana Ordinance No. 2015.011 APPROVED AS TO FORM: