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HomeMy WebLinkAboutResolution 2016-082 Approving a modification to IGA Transaction Privilege TaxMARANA RESOLUTION NO. 2016-082 RELATING TO TRANSACTION PRIVILEGE TAX; APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE A MODIFICATION TO INTERGOVERNMENTAL AGREEMENT BETWEEN rF IE STATE of ARIZONA DEPARTMENT of REVENUE AND THE TOWN of MARANA REGARDING THE ADMINISTRATION, COLLECTION AUDIT AND /OR LICENSING OF rfRANSACTION PRIVILEGE TAX AND AFFILIATED EXCISE TAXES IMPOSED BY THE TOWN OF MARANA WHEREAS A.R.S. § 1 I -952 authorizes two or more public agencies to enter into intergov- ernmental agreements to contract for services, if authorized by their legislative or governing bodies; and WHEREAS A.R.S. § 42 -6001 et seq. provides that the Arizona Department of Revenue ( "Department ") shall collect and administer any transaction privilege and affiliated excise taxes im- posed by any city or town in Arizona and that the Department and each city or town shall enter into an intergovernmental contractor agreement pursuant to A.R. S. § 11 -952 to provide a uniform meth- od of administration, collection, audit and licensing of transaction privilege and affiliated excise tax- es imposed by the state, cities or towns; and WHEREAS on .rune 16, 2015, the Town Council adopted Resolution No. 2015 --06 1, approv- ing and authorizing the Mayor to execute an intergovernmental agreement between the Department and the Town regarding the administration, collection, audit and/or licensing of transaction privi- leged tax and affiliated excise taxes imposed by the Town; and WHEREAS the Town Council finds that modifying the intergovernmental agreement 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 1. The modification to intergovernmental agreement between the Arizona De- partment of Revenue and the Town of Marana, attached to and incorporated by this reference in this resolution as Exhibit A, is hereby approved and the Mayor is hereby authorized to execrate it for 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 intergovernmental agreement, as amended. Marana Resolution No, 206-082 PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF J.- lVJLlAr%-lAlN IA lAl'UL, A INY-1 this 10 LI-I cla of Au 20 APPROVED AS TO FORM: ""0 r � 4 a C y , Town At rne 'e -2- Marana RCSOILItion No. 20b-082 MODIFICATION TO INTERGOVERNMENTAL AGREEMENT BETWEEN THE STATE OF ARIZONA AND CITY /TOWN WHEREAS, The Arizona Department of Revenue, hereinafter referred to as Department of Revenue and City /Town of Marana, hereinafter referred to as City /Town, have entered into an Intergovernmental Agreement regarding the administration of taxes imposed by the State or City /Town dated June 16, 2015, hereinafter referred to as the IGA, and WHEREAS, the Department of Revenue and the City /Town intend to continue with the IGA for an additional one year term in order to determine whether the general terms of the IGA meet the parties' needs, with the exception of the modifications set forth below. The parties agree to modify the IGA as follows effective July 1, 2016: 1. Add the following new subsection to Section 9, Collection of Municipal Taxes: 9.6 Adjustments to Reported Taxes: If the Department of Revenue determines that a payment remitted by a taxpayer incorrectly identifies the city or town to which the payment should be made, the Department of Revenue may temporarily hold the payment until the distribution of the payment is corrected so that the appropriate city or town receives the payment. 2. Add the following new subsection to Section 9, Collection of Municipal Taxes: 9.7 Taxpayer Rulings and Uniformity: Recognizing taxpayer written requests for interpretation of the statutes and/or the Model City Tax Code, as well as guidance regarding uniform application and interpretation of the statutes and the Model City Tax Code impact all taxing jurisdictions, and further recognizing responsibility for such rulings and interpretation of the Model City Tax Code had previously been the sole domain of the mr.unicipalities, the Department shall include at least two representatives of the municipalities as regular members of any group established to respond to such taxpayer ruling requests and to issue such uniform interpretations and guidance promulgated by the Department. Participation by the two representatives of the municipalities on any such group is limited to instances when there is an issue raised that solely involves the Model City Tax Code and/or presents an issue of first impression, including requests for private taxpayer rulings. The municipal representatives may also be consulted by the Department on information letters, or when issuing statements of general guidance. written requests involving common questions or issues that have previously been addressed, whether unique to the Model City Tax Code or not, may be handled in the regular course of Department processes without consulting the representatives of the municipalities. IGA Modification 6-17-2016 3. Amend Section 10, Financin Collection of Taxes as follows: 10, Financin Collection of Taxes. The costs incurred b the Department in administerin this A shall be financed throu the State g eneral fund appropriation to the Department. This provision does not relieve Cit of an financial obli imposed b statute. 4. Amend subsection 28.1 of Section 28, Duration, relatin to automatic renewal of the a as follows: 28.1 The term of this A shall be from Jul I throu June 30 of each y ear. This A shall automaticall be renewed for successive one y ear terms thereafter unless either part shall terminate this A b notice, in writin no later than sixt calendar da prior to the expiration of the term then in effect. An a upon modifications to the terms and conditions of this a shall be incorporated to be effective durin the term identified b the review committee provided for in section 28.5. 5. Amend subsection 28.5 of Section 28, Duration, relatin to annual review of the a as follows: 28.5 Durin the term of this A the terms and conditions of this A will under an annual review to be initiated no later than June I't of each y ear. The review will be performed b a committee made up of e parts representatives of the Department and representatives of the municipal taxin jurisdictions enterin into an IGA with the Department for the administration and collection of Municipal Taxes. Signature Auth ority. B si below, the si certifies that he or she has the authorit to enter into this A and has read the fore and a to accept the provisions herein. This modification ma be executed in counterparts. ll 2V A si g nature I Date Si Date T Name and Title T Name and Title Entit Name Entit Name IGA Modification 6-17-2016 RESERVED FOR THE ATTORNEY GENERAL: RESERVED FOR CITY/TOWN ATTORNEY: Attorne General no. 5 ' APPROVED AS TO FORM AND AUTHORITY: which is an a between public a has been reviewed pursuant to A.R.S. § 11-952 b the undersi Assistant Attorne General who has BY: determined that it is in proper form and is within the TYIT N ATTO powers and authorit g ranted under the laws of the State of Arizona to the Arizona Department of Date: Revenue represented b the Attorne General. MARK BRNOVICH The Attorne General Si Assistant Attorne General Date: IGA Modification 6-17-2016