HomeMy WebLinkAboutResolution 2015-112 Approving MOU between the State of Arizona Dept of Revenue and Town of MaranaMARANA RESOLUTION NU. 2015 -112
RELATING TO TRANSA.CTION PRIVILEGE rI APPROVING AND AUrT HORIZING rT H
FINANCE DIRECTOR TO EXECUTE A MEMORANDUM OF UNDERSTANDING BETWEEN
THE STATE OF ARIZONA DEPARTMENT OF REVENUE AND THE TOWN OF MARANA
TO ESTABLISH PERFORMANCE MEASURES TO PROMOTE THE TIMELY, EFFICIENT
AND ACCURATE PROCESSING OF MUNICIPAL TAX MATTERS
WHEREAS A.R.S. § 42 -6001 et seq. provides that the Arizona Department of Revenue
(ADOR) shall collect and administer any transaction privilege and affiliated excise taxes imposed by
any city or town in Arizona and that the Department and each city or town shall enter into an inter -
governmental contract or agreement (IGA) pursuant to A.R.S. § 11 -952 to provide a uniform method
of administration, collection, audit and licensing of transaction privilege and affiliated excise taxes
imposed by the state, cities or towns; and
WI �EREAS on .Tune 16, 2015, the Town Council adopted Resolution No. 2015 -061 approv-
ing and authorizing the Mayor to execute an IGA with ADOR regarding the administration, collec-
tion, audit and/or licensing of transaction privilege tax and affiliated excise taxes imposed by the
Town of Marana; and
WHEREAS in furtherance of the purposes of the ILIA, the parties desire to enter into a mem-
orandum of understanding to establish performance pleasures to promote the timely, efficient and
accurate processing of municipal tax matters; and
WHEREAS the Town Council finds that entering into this memorandum of understanding is
in the best interests of the Town and its citizens.
Now, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE
TOWN OF MARANA, ARIZONA, AS FOLLOWS:
SECTION I. The memorandum of understanding between the Arizona Department ofReve-
nue and the Town of Marana, attached to and incorporated by this reference in this resolution as E
hibit A, is hereby approved and the Finance Director is hereby authorized to execute it f or and on
behalf of the Town of Marana.
SECTION 2. The Town's Manager and staff` are hereby directed and authorized to undertake
all other and further tasks required or beneficial to carry out the terms, obligations, and objectives of
the memorandum of understanding.
00042602.DOC /2
Marana Resolution No, 2015-112 10/12/2015 1;21 11M.11 "A"C
PASSED AND AI)OPTED BY THE MAYOR AND COUNC1.1, 01i''I'l.11.1i'l-'OWN 01
MARANA, ARIZONA, this 20th da of October, 2015.
ATTEST:
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A MA! -A - 7
JAcel C Town Clerk
00042602.DOC 12
Marana Resolution No. 2015-112
Ma Ed onea/
9pm
10/1212015 1:21 PMJF/FC
APPROVED AS TO FORM:
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Memorandum of U Inderstanding.
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Memorandum of Understanding
Between
Arizona Department of Revenue
and
City/Town of
Background
Administration and collection of local municipal transaction privilege tax and similar
affiliated excise taxes imposed under the Model city Tax code are governed under
Arizona Revised Statutes Title 42, Chapter 6.
House Bill 2111 (2013 First Regular Session) and House Bill 2389 (2014 Second
Regular Session), as a means of simplifying tax administration, requires the local
municipal transaction privilege and affiliated excise taxes to be collected and
administered by the Arizona Department of Revenue ( "DOR "). In addition, DOR and
each city and town shall enter into an intergovernmental agreement to establish a
uniform method of administration, collection, audit, and licensing. House Bill 2617 (2015
First Regular Session) requires DOR to impose fees on cities and towns to pay a
portion of administrative, program and other operating costs for DOR to provide
administrative and collection services to local governments.
Purpose
In furtherance of this mission and the fees imposed by House Bill 2617, this
Memorandum of Understanding (MOU) sets forth the understanding between the DOR
and the City/Town of ( "City/Town ") to establish performance measures to
promote the timely, efficient and accurate processing of municipal tax matters.
Reporting
Appendix A, which was created by a team of representatives from DOR and the cities
and towns, focuses on the performance measures in the operational areas of
Administration, customer Service, AZTAXES.gov, Audit, and Collections.
Duration
The term of this MOU shall be from July 1, 2015 through June 30, 2016.
Annual Review
During the term of this MOU, the Appendix A may undergo an annual review to be
completed no later than March 31' of each year, however can be delayed or canceled if
determined no review is necessary. The performance measures may be modified by
DOR and the cities and towns upon mutual agreement during the annual review
process. These performance measures are goals. Payments due from cities and towns
are required by law, and not contingent upon DOR meeting the goals.
Arizona Department of Revenue
Attn: Director, Division Code 20
1 600 W. Monroe
Phoenix, AZ 85007
Director
Arizona Department of Revenue
C ity/Town of
City Address
Date:
Chief Financial Officer /Finance Director
C ity/Town of
Date.*
Appendix A
Performance Category
Administration
Goal /Objective Performance Measurement Report Additional Info
Frequency
New licenses processed
To process new license applications
1. average # of days to process a new license
Monthly
within 5 days of receipt
application 2. % of new license applications
processed within 5 days of receipt
License Modifications /Cancellations
To process license
# of license modifications /cancellations
Monthly
modifications /cancellations received
remaining at the end of the month
by the 25th of the month by the end of
the month.
Clean cut off by calendar month activity on all
DOR will ensure that all money
1. Close the previous accounting month by the
Monthly
monthly activity reports
deposited within a calendar month and
15th of the following month. 2. Beginning
all returns received within a calendar
January, 2016, to distribute money from 2
month will be processed within that
accounting months during the first 2 weeks of
accounting month and money
the new accounting month.
distributed for that month.
All TPT Tax Returns processed including
To process all TPT tax returns within an
Average # of days to process a TPT tax return /%
Monthly
amendments, modifications, adjustments, etc.
average of 4 calendar days.
of TPT tax returns processed within 4 calendar
days
TPT Deposits
Payments processed and deposited
Average # of days to deposit TPT money
Monthly
within 24 hours of receipt
Distribution or Allocation errors
Notify affected cities of distribution or
As needed
allocation error within 5 business days
of identification
Month End City Journals
To complete the month -end
1. Number of calendar days to issue the City
Monthly
reconciliation process and issue the
Payment Journal. 2. Percent of months in
City Payment Journals by the 15th of
which report was issued prior to the 15th
the next calendar (accounting) month.
calendar day of the month.
Customer Service
ADOR MOU Performance Measures 07 -16 -15 FINAL Page 1 of 5
Appendix A
Performance Category Goal /Objective Performance Measurement Report Additional Info
Frequency
Cities Unit - Request for Research
To provide feedback to city requests
1. Average # of days to provide feedback to city
Monthly
June 2015: 24%
the following items:
for research by establishing contact
requests for research. 2. # of days for
AZTaxes online and available
with Cities Unit employee within 10
resolution of city request.
Monthly
days.
was ready for discussion.
Cities Unit - Request for Research - License
To respond to city requests for license
Average # of days to respond to a city request
Monthly
Report fields to include, but
Compliance
information within 5 days of request
for license information
not limited to; Business Name,
c. Audits in Progress for All Cities
Business Address, Owner
d. Completed Audits for All
Information.
TIA - Incoming Calls from Businesses
To respond to business taxpayer calls
Average # of minutes to respond to a business
Monthly
e. VDAs
within 15 minutes.
taxpayer call
AZTaxes
Electronic return filings
To increase the percentage of TPT
% of TPT taxpayers who file electronically
Monthly
June 2015: 24%
the following items:
taxpayers who file electronically to 40%
by the UAC meeting in September, 2015. 2.
AZTaxes online and available
To ensure that AZTaxes.gov is available
% of time AZTaxes.gov is available
Monthly
for taxpayers use 24/7
was ready for discussion.
Audit
Comprehensive Audit Report(s) that includes
To produce a comprehensive audit
1. Comprehensive TPT Audit Report designed
Bi- monthly
the following items:
report bi- monthly to disseminate at
by the UAC meeting in September, 2015. 2.
the bi- monthly UAC meeting or email
of bi- monthly UAC meetings in which report
to non -UAC member cities.
was ready for discussion.
a. Planned Audits
b. Request for Audits
c. Audits in Progress for All Cities
d. Completed Audits for All
Cities /towns
e. VDAs
f. Managed Audits
g. Audit Penalty Waivers
h. Refund Requests
i . Protests
ADOR MOU Performance Measures 07 -16 -15 FINAL Page 2 of 5
Appendix A
Performance Category Goal /Objective Performance Measurement Report Additional Info
Frequency
j. Settlements /Closing Agreements
In State Audits (Field & Desk Review)
Average # of months to complete an In State
Monthly
audit/ % of In State audits completed within 7
months of opening the audit
Out of State Audits
Average # of months to complete an Out of
Monthly
State Audit /% of Out of State Audits completed
within 18 months of opening the audit
License Compliance /Enforcement
Report to be designed by September 2015 UAC
Monthly
meeting based upon License Compliance
database. Consideration being given to sharing
of data between DOR and cities and towns with
licensing programs.
Audit Assessments
To process an audit conducted by
Average # of days to process an audit
Monthly
city /town within 10 business days of
conducted by city /town once a complete and
receiving a complete and accurate file
accurate file was received
Collections
DOR Comprehensive Collections Report that To provide Collections information 1. # of reports issued weekly 2. % of weeks Weekly
includes the following information: pertaining to TPT accounts by the end report was issued
of the following week.
a. Payment Plans
b. Liens
c. Levies
d. Judgments
Identifies accounts on payment plans
Identifies accounts with filed liens
Identifies accounts that have been
Identifies accounts that have
judgments filed
Modification of existing DOR
internal report to include
Status, total AR balance, etc.
(Cannot be distinguished by
city /town balances).
Open /Closed /In Progress
Collection Cases
DOR does very few, if any, TPT
ADOR MOU Performance Measures 07 -16 -15 FINAL Page 3 of 5
Appendix A
Performance Category Goal /Objective Performance Measurement Report Additional Info
Frequency
e. Bankruptcies Identifies accounts in bankruptcy Modification of existing DOR
status internal report to include
Status, total AR
Liquor Tag
To provide Collections information
1. # of reports issued weekly 2. % of weeks
Weekly
DOR will have to issue a
pertaining to TPT accounts with a
report was issued
separate report for Liquor Tag
Liquor Tax by the end of the following
License Update Report (new report)
To issue report each week by noon on
information.
Weekly
week.
Tuesday via FTP to city /town
each week 2. % of weeks in which reports
Accounts Receivable - Aging Report
Summary report of TPT activity
Monthly
were issued by noon on Tuesday
REPORTS FROM DOR
New License Report (modification of existing
To issue report each week by noon on
1. # of reports issued by noon on Tuesday of
Weekly
All reports are listed in the IGA
report)
Tuesday via FTP to city /town
each week 2. % of weeks in which reports
were issued by noon on Tuesday
License Update Report (new report)
To issue report each week by noon on
1. # of reports issued by noon on Tuesday of
Weekly
Tuesday via FTP to city /town
each week 2. % of weeks in which reports
were issued by noon on Tuesday
City /town Payment Journal Detail (CPJ)
To issue report each week by noon on
1. # of reports issued by noon on Tuesday of
Weekly
(modification of existing report)
Tuesday via FTP to city /town
each week 2. % of weeks in which reports
were issued by noon on Tuesday
City /town Payment Journal Summary
To issue report each week by noon on
1. # of reports issued by noon on Tuesday of
Weekly
(modification of existing report)
Tuesday via FTP to city /town
each week 2. % of weeks in which reports
were issued by noon on Tuesday
No money report (new report, data currently
To issue report within 15 calendar days
1. # of reports issued by the 15th calendar day
Monthly
Filed and not paid /Licensed
shown on CPJ) also includes delinquency
after the close of the preceding month
of the following month 2. % of months in
but not filed
information
via FTP to city /town
which report was issued prior to the 15th
calendar day of the month
Fund Distribution Report with 100% accuracy
To issue report each week by noon on
1. # of reports issued by noon on Tuesday of
Weekly
Tuesday via FTP to city /town
each week 2. % of weeks in which reports
were issued by noon on Tuesday
Fund Distribution Summary Report (new report)
To issue report each week by noon on
1. # of reports issued by noon on Tuesday of
Weekly
Tuesday via FTP to city /town
each week 2. % of weeks in which reports
were issued by noon on Tuesday
ADOR MOU Performance Measures 07 -16 -15 FINAL Page 4 of 5
Appendix A
Performance Category Goal /Objective Performance Measurement Report Additional Info
Frequency
Deduction Report (new report)
To issue report each week by noon on
1. # of reports issued by noon on Tuesday of
Weekly
Tuesday via FTP to city /town
each week 2. % of weeks in which reports
Select SLUG members
To select the members of SLUG
were issued by noon on Tuesday
SLUG Reporting
Create system for cities to appeal to SLUG
To create a process for town /city to
The process is documented by January 1, 2016
appeal to SLUG
Select SLUG members
To select the members of SLUG
Members selected and documented by January
committee by January 1, 2016
1, 2016
ADOR MOU Performance Measures 07 -16 -15 FINAL Page 5 of 5