HomeMy WebLinkAboutOrdinance 79.03 Transaction privilege tax79.03 TRANSACTION PRIVILEGE TAX
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Section 79.03-1 DEFINITIONS
In this chapter unless the context requires otherwise:
A. "Assembler" means a person who unites or combines products, wares or
articles of manufacture so as to produce a change in form or substance
without changing or altering the component parts. This definition
shall not be interpreted to include activities listed in paragraphs
2,3,4,5, g and 9 of Section 79.03-3 (A) of this article.
B. "Auditor" means any (Town) employee or agent authorized by the tax
collector to audit records of a person subject to the tax specified
by this chapter and may include an employee of another city or town.
C. "Business" includes 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.
D. "Contracting" means engaging in business as a contractor.
E. "Contractor" means a person who, for either a fixed sum, price, fee,
percentage, bonus or other compensation other than actual wages,
undertakes to or offers to undertake to, or purports to have 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, or
to do any part thereof, including the erection of scaffolding or other
structures or works in connection therewith. The term "contractor"
includes subcontractors, specialty contractors, developers and specula-
tive builders.
F. "Engaging", When used with reference to engaging or continuing in
business, means the exercise of corporate or franchise powers.
G. "Gross income" means the gross receipts of a taxpayer derived from
trade, business, commerce or sales and the value proceeding or
accruing from the sale of tangible personal property or service,
or both, and without any deduction on account of losses.
H. "Gross proceeds of sales" means the value proceeding or accruing
frnm the sale of tangible personal property without any deduction
on account of the cost of property sold, expense of any kind, or
losses, but cash discounts allowed and taken on sales shall not be
included as gross income; "gross income" or "gross proceeds of sale"
shall not be construed to include goods, wares or merchandise, or
value thereof, returned by customers when the sale price is refunded
either in cash or by credit, nor the sale of any article accepted as
part payment on any new article sold, if and when the full sale price
of the new article is included in the "gross income' or "gross proceeds
of sales", as the case may be.
I. "Gross receipts" means the total amount of sale, lease or rental price,
as the case may be, of the retail sales of retailers, including any
services that are a part of the sales, valued in money, whether
received in money or otherwise, including all receipts, cash, credits
and property of every kind or nature, and any amount for which credit
is allowed by the seller to the purchaser, without any deduction there-
from on account of the cost of the property sold, materials used, labor
or service performed, interest paid, losses or any other expense. The
term does not include cash discounts allowed and taken or the sale
price of property returned by customers, when the full sale price
thereof is refunded either in cash or by credit.
J. "Hotel" means any public or private hotel, inn, hostelry, tourist
home or house, motel, rooming house, apartment house, trailer or
other lodging place within the Town of Manana offering lodging, where-
in the owner and operator thereof, for compensation, furnishes lodging
to any transient, except foster homes, rest homes, sheltered care homes,
nursing homes or hospitals.
K. "Lodging" and "lodging space" means the use or possession, or the right
to the use or possession, of any room or apartment in a hotel, or the
right to the use or possession of the furnishings or to the services and
accommodations accompanying the use and possession of the room,
including storage or parking space for the property of a transient.
L. "Manufacturer" means a person who is principally engaged in the
fabrication, production or manufacture of producers, wares or articles
for use from raw or prepared materials, imparting to such materials
new forms, qualities, properties or combinations. This definition
shall not be interpreted to include activities listed in paragraphs
2,3,4,5, 8 and 9 of Section 79.03-3 (A) of this code.
M. "Modifier" means a person who reworks, changes or adds to products,
wares or articles of manufacture. This definition shall not be
interpreted to include activities listed in paragraphs 2,3,4,5, 8 and
9 of Section 79.03-3 (A) of this code.
N. "Notice" means a written instrument served by the (Town) as follows,
with time commencing from date of mailing, serving, filing or
recording:
1. By registered or certified mail to the last known address of the
person to whom it is required to be given; or
2. By personal service upon the person or his lawful representative;
or
3. By filing or recording with a clerk of the superior court or a
county recorder.
0. "Permanent resident" means any person who, as of a given date, has
occupied lodging space or has paid or become obligated to pay for the
right to occupy lodging space, in a particular hotel for the thirty
consecutive days next preceding such date, or has signed and performs
under a lease.
P. "Person" or "company", herein used interchangeably, means an individual,
officer, agent, firm, partnership, joint venture, association, corpor-
ation, estate, trust or any other group or combination acting as
a unit, and the plural as well as the singular number, unless the
intent to give a more limited meaning is clearly intended by the
context.
Q. "Repairer" means a person who restores or renews products, wares or
articles of manufacture. This definition shall not be interpreted to
include activities listed in paragraphs 2,3,4,5, b and 9 of Section
79.03-3 (A) of this article.
R. "Owner -builder" means a person who owns or leases real property with-
in the Town acting as a contractor in constructing any improvement upon
the real property which real property as improved is held by such person
for his use or for rental purposes. An owner -builder who sells such
real property as improved at any time on or before the expiration of
twenty-four months after an occupancy permit for such improvement is
issued, or if no permit is issued, within twenty-four months after
final inspection of the improvement or when the improvement is completed,
whichever is later, shall be treated as a "prime contractor" for
purposes of this article. For purposes of this definition, a "sale" of
real property as improved includes any form of transaction whether
characterized as a lease or otherwise which in substance is a sale and
includes any lease of the improvement for a term of thirty years or
more with all options for renewal being included as a part of the term.
S. "Prime contractor" means a contractor which the owner or lessee of the
real property being improved treats as being responsible for adminis-
tration, construction and completion of the improvement. For purposes
of this definition, a person who, for either a fixed sum, price, fee,
percentage, bonus or other compensation other than actual wages, under-
takes to or offers to undertake to, or submits a bid to, or does him-
self or by or through others, supervises the construction of the improve-
ment, or coordinates the construction of the improvement, or both, is a
prime cm tractor, unless such supervisor or coordinator demonstrates, to
the Town's satisfaction, that another contractor is, in fact, the prime
contractor for the improvement; provided, a person acting on behalf of
an owner -builder rendering consulting services shall not be regarded as
a prime contractor if:
1. Such person does not guarantee a maximum price for the improvement
to the owner -builder;
2. Such person does not contract with contractors constructing the
improvement; and
3. Such person is not responsible to the owner -builder for the admin-
istration, construction and completion of the impro7ement.
T. "Retailer" means every person engaged in the business of making sales
at retail, and when in the opinion of the tax collector it is necessary
for the efficient administration of this article, includes dealers,
distributors, supervisors and employers, and salesmen, representatives,
peddlers or canvassers as the agents of such dealers, distributors,
supervisors or employers under whom they operate or from whom they obtain
the tangible personal property sold by them, whether in making sales on
their own behalf or on the behalf of such dealers, distributors, super-
visors or employers.
U. "Retail sale" or "sale at retail" means a sale for any purpose other
than for resale in the form of tangible personal property, but the
expressions of "transfer of possession", "lease" and "rental" as used
in the definition of "sale", mean only such transactions as are found
upon investigation to be in lieu of sales as defined without the words
"lease" or "rental".
V. "Room rental" means the total charge, exclusive of all federal, state
and municipal taxed, made by any hotel for lodging or lodging space
furnished any transient. If the charge made by such hotel to such
transient includes any charge for services or accommodations in addition
to that of lodging, or the use of lodging space, then such portion
of the total charge as represents only room or lodging space rental
shall be distinctly set out and billed to such transient by such hotel
as a separate item.
W. "Sale" means any transfer of title or possession, or both, exchange,
barter, lease or rental, conditional or otherwise, in any manner or
by any means whatsoever, of tangible personal property, for a
consideration or any agreement therefor, and includes, but is not
limited to:
1. Any transaction whereby the possession of property is transferred,
but the seller retains a security interest for the payment of
the purchase price.
2. The fabrication of tangible personal property for consumers
who furnish either directly or indirectly the materials used
in the fabrication work, where such fabrication is customarily
included in the sale price of similar tangible personal property
sold to consumers.
3. The furnishing, preparing or serving for a consideration of
any tangible personal property consumed on the premises of
the person furnishing, preparing or serving such tangible
personal property.
X. "Stock" means the goods and wares of a person kept for sale and
traffic, and for the purpose of this article shall include, but
not be limited to all tangible personal property specially ordered
for any customer, if for any reason such specially ordered property
is brought into the (Town) prior to completion of the sale.
Y. "Tangible personal property" means personal property which may be
seen, weighed, measured, felt, touched or is in any other manner
perceptible to the senses.
Z. "Tax collector" means the common council of the (Town of Marana)
or its authorized agent.
AA. "Taxpayer" means any person liable for any tax imposed by this article.
BB. "Transient" means any person who, for any period of not more than
thirty days, either at his own expense or at the expense of another,
obtains lodging or the use of any lodging space in any hotel for
which lodging or use of lodging space a charge is made.
CC. "Wholesaler" or "jobber" means any person who sells tangible personal
property for resale by a licensed retailer and does not sell tangible
personal property for consumption by the purchaser. When a person
normally selling for resale makes any sale at retail or for consumption
by the purchaser, such person is defined as a "retailer" for purposes
of this article.
Sec. 79.03-2 Permit Requirements
A. Every person having a gross proceeds of sales or gross income upon
which a privilege tax is imposed by this article desiring to engage
in or to continue in business activities within the (Town,) shall
make application to the tax collector for a transaction privilege
permit, accompanied by a fee of two dollars, and no person shall
engage in business or continue in business within the (Town) until
he shall have such a permit. This fee shall become effective for
all new permits at the start of the day on which this article
becomes effectiie. Previously existing privilege licenses shall be
considered to -be transaction privilege permits for the purposes
of this article.
B. Application for privilege permits required under this article shall
be made upon forms prescribed by the tax collector.
C. It shall be a condition precendent to issuance of a permit that all
provisions of this code, ordinances, regulations and requirements
affecting the public peace, health and safety be complied with in
toy
D. The privilege permit required by Section 79.03-2 (A) shall be good
so long as all returns and tax payments are made as required by
this article.
E. Upon the failure of any person to pay the required tax, penalty and
interest within a period of thirty days after it becomes due, the
tax collector may give such person notice of intent to cancel the
privilege permit. If the person so notified requests a hearing with-
in ten days from notice, he shall be granted a hearing before the tax
collector. Upon a finding by the tax collector that tax, penalty and
interest is unpaid and has remained unpaid at least thirty days, or
if no request for hearing has been received within ten days after
notification as herein provided, the privilege permit shall be cancelled
and such permit shall not be reissued until all such taxes, penalty
and interest due shall have been paid.
F. Any person whose privilege permit has been cancelled shall be required
to pay a fee of twenty-five dollars for each reissue of a permit, and
such permit shall not be reissued until all taxes, penalties and
interest have been paid. The tax collector may, at his discretion,
reissue under the previous permit number or issue a new permit.
G. A person engaged in or conducting taxable business in two or more
established locations within the (Town) shall be required to obtain
a separate permit for each location, except that for the business
of leasing or renting the use or occupancy of real property, only
one application for such property within the (Town) shall be required;
however, the applicant shall be required to list all such property
by street address or other satisfactory identification and shall
notify the tax collector within ten days after sale or acquisition
of any such real property, clearly identified by location in each
instance.
H. At the time a taxable business is sold or when any other ownership
change occurs, a new privilege permit shall be obtained for each
permit effective at the time of such change.
I. Any person holding a privilege permit shall be required to notify
the tax collector of any change in either mailing address or location
within fifteen days after such change occurs. A fee of one dollar
shall be required whenever any change in location of a business
within the (Town) occurs.
J. The permit prescribed in Section 79.03-2 (A) shall be nontransferable
and shall be displayed in some conspicuous part of the applicant's
place of business.
Sec. 79.03-3 Imposition of Tax --Tax Schedule
There is hereby levied and shall be collected by the tax.`collector, for
the purpose of raising revenue to be used in defraying the necessary
expenses of the (Town), privilege taxes measured by the amounts or volume
of business transacted by persons on account of their business activities,
and in the amounts to be determined by the application of rates against
values, gross proceeds of sales or gross income, as the case may be, in
accordance with the following schedule:
A. Percentage of Tax and Business Liable to Taxation. An amount equal
to two percent of the gross proceeds of sale or gross income from
the business upon every person engaging in or continuing within
the (Town) in the following businesses:
1. Transporting for hire persons or property by any means of
transportation, from a point within the (Town) to another
point within the (Town,) or from a point within the (Town) to
another point within the State of Arizona; provided, that the
levy shall not apply to common or contract carriers paying a
tax under the provisions of Arizona Revised Statutes, Section
40-641.
2. Mining, quarrying, smelting or producing for sale, profit or
commercial use, any oil, natural gas, limestone, sand, gravel,
copper, gold, silver or other mineral product, compound or
combination of mineral products, or felling, producing or preparing
timber or any produce of the forest for sale, profit or commercial
use. In computing the tax, the price shall be reduced by the
actual freight paid by any person from the place of production
to the place of delivery when the freight is included in the sale
prices of the products.
3. Producing and furnishing, or furnishing to consumers, electricity,
electric lights, current, power or gas, natural or artificial,
and water.
4. Transmitting local or long distance messages or conversations
by telephone, or messages by telegraph, from a point within
the (Town) to another point within the State of Arizona, including
gross income derived from tolls, subscriptions and services
on behalf of subscribers, or by publication of a directory
of the names of subscribers.
5. Operating a pipe line for transporting oil, or natural or artificial
gas, through pipes or conduits from a point within the (Town) to
another point in the (Town) or in the state.
6. Operating private railroad car lines, as they are defined in
Title 42, Chapter 4, Article 3, Arizona Revised Statutes, from
one point within the (Town) to another point in the (Town) or state.
7. Publication of newspapers, magazines or other periodicals and
publications, when published within the (Town,) including the
gross income derived from advertising, notices and subscriptions
sold within the (Town). Subscriptions sold within the (Town) for
newspapers, magazines or other periodicals and publications published
without the (Town) shall also be taxable under this section, and
advertising sold within the (Town) shall likewise be taxable.
b. Job printing engraving, embossing and copying, advertising by
billboards, direct mail, radio, television or by any means
calculated to appeal to prospective purchasers or users.
9. The contracting business or acting as a prime contractor, or both.
a. For purposes of this classification, there shall be subtracted
from the gross income, gross proceeds of sale or gross receipts
subject to the privilege tax, a deduction in the amount of
thirty-five percent of said gross income, gross proceeds of
sale or gross receipts in lieu of any labor, shop or subcontractor
deductions. Subcontractors or others who perform services in
respect of the improvement, building, highway, road, railroad
excavation or other structure, project, development or improvement
(hereinafter "job") are exempt from the privilege tax on their
gross income, gross proceeds of sale or gross receipts derived
from the job if they can demonstrate to the Town's satisfaction
that the job was within the control of a prime contractor or
prime contractors and that such prime contractor paid or should
have paid the privilege tax upon the gross income, gross proceeds
of sale or gross receipts attributable to the job and from
which the subcontractors or others were paid.
b. An owner -builder, who is not a prime contractor, shall pay
the privilege tax or use tax, as the case may be, upon the sales
to him or to his account of all tangible personal property incorpo-
rated or fabricated into any structure, project, development
or improvement undertaken by him; provided, if the owner -builder
is treated as a prime contractor for privilege tax purposes,
he shall deduct from the gross income, gross proceeds of sale
or gross receipts derived from the sale (as defined under owner -
builder) of the real property as improved by him:
(1) An amount of thirty-five percent of said gross income,
gross proceeds of sale or gross receipts in lieu of any
labor, shop or subcontractor deductions;
(2) Either a tax credit equal to the amount of privilege or
use tax, or the equivalent tax, paid to the Town of I&rana
or another city or town in respect of the tangible personal
property incorporated or fabricated into the said structure,
project, development or improvement undertaken by him;
and
(3) A tax credit equal to the amount of privilege taxes paid
by the contractor or subcontractors to the Town of I&rana
on the gross income, gross proceeds of sale or gross
receipts derived by the contractor or subcontractor from
the construction of the improvement upon the real property
owned or leased by the owner -builder and sold by him.
C. Reporting by contractors. Contractors shall report on a progressive
billing basis or cash receipts basis, but home builders, speculative
or otherwise, and owner -builders shall report as gross income,
gross proceeds of sale or gross receipts the total selling
price at the time of closing of escrow or transfer of title.
d. Deductions allowable and pertaining to the gross income, gross
proceeds of sale or gross receipts may not be taken prior to
the time that said proceeds or receipts are reported.
10. Restaurants, dining rooms, lunchrooms, lunch stands, soda fountains,
bars, taverns or similar establishments where articles of food
or drink are sold, and catering or sale of food and drink from mobile
units within the (Town.) Articles of food or drink prepared for
service or resale by another person may be deducted, providing that
the person reselling has a valid privilege permit for such purpose.
11. Selling at retail such property used by human beings for food, drink
or condiment, whether simple, mixed or compounded, where such property
is not customarily sold for oonsumption on the premises commonly and
generally known as the business of selling groceries at retail.
The sale to hotels, restaurants, lunchrooms, boarding houses or similar
establishments of articles used by human beings for food, drink or
condiment, whether simple, mixed or compounded, where such articles
are customarily prepared and served to patrons for consumption on the
premises shall be deemed wholesale sales as to such commodities,
providing that the person reselling has a valid privilege permit
for such purpose.
Bulk sales of feed, seeds, fertilizers, insecticides, and chemicals used
specifically for the growing and harvesting agricultural products are
exempt. Bulk sales for purposes of this exemption shall be defined as
those individual sales involving gross weight of the product above
50 pounds or 1 gallon.
12. Selling any tangible personal property whatsoever at retail or to the
ultimate consumer, including but not limited to sale of new and used
vehicles of any type, and sales made from mobile units when within the
(Town.) Gross receipts from painting signs on structures within the
(Town) or upon vehicles while within the (Town) shall be taxed as retail
sales, without deduction. Sales of tangible personal property within the
State of Arizona which result from activities of agents or representative,
of a person whose principal office within Arizona is within the (Town of
Marana) shall be taxable, provided that delivery is made from the (Town.)
13. Operating or conducting amusements including but not limited to theaters,
movies, operas, exhibitions, concerts, carnivals, circuses, shows of any
type or nature, amusement park admissions, amusement rides, menageries,
fairs, races, contests, games, golf courses, tennis courts, batting or
driving ranges, riding on any animals, juke boxes, pinball machines,
billiard and pool parlors, bowling alleys, dance halls, public dances,
boxing or wrestling matches, or any other business charging admission fees
for exhibition or amusement. Nonprofit private clubs where basic membership
fees cover use of amusement facilities, and amusements conducted by the
organizations themselves on an occasional basis to raise funds for projects
of bona fide religious organizations, nonprofit educational institutions
and nonprofit fraternal or service clubs are exempt.
14. Leasing or renting for a consideration any tangible personal property;
sales of tangible personal property to be so leased or rented shall
be deemed to be resale sales.
15. Leasing or renting for a consideration the use or occupancy of real
property, including any improvements, rights or interest in such
property to the person in actual possession where the rent or lease
payment covers a period of more than thirty-one days.
16. Leasing or renting for a consideration the use or occupancy of any
hotel, lodging or lodging space to the transient or person in actual
possession for any period less than thirty consecutive days, provided,
that this subsection shall not apply to a permanent residence and a
deduction of fifty percent shall be allowed for room rental paid by
the United States Government, its departments and agencies.
B. Basis for Taxation Under Certain Conditions.
1. In determining value as applied to sales from one to another
person, or other circumstances where the relation between the
buyer and seller is such that the gross proceeds from the sale
are not indicative of the true value of the subject matter of the
sale, the council may prescribe uniform and equitable rules for
determining the value upon which the tax herein levied shall be
based, corresponding as nearly as possible to the gross proceeds
from the sale of similar products of like quality or character of
other taxpayers where no common interest exists between the buyer and
seller, but otherwise under similar circumstances and conditions.
2. For the purpose of computing the tax by this article, "conditional
or time sales" shall be treated as credit sales and tax shall be
based only upon the amounts received under such security agreements,
but if the seller transfers his interest in such agreements to a
third person, he shall pay an amount based upon the full sale price
of the commodity, unless a record is kept of payments thereafter
made on the contract in such manner that the tax collector may at
all times ascertain from the records of the seller the amount
paid thereon by the purchaser. If at any time the tax collector
cannot ascertain the amount paid thereon, the tax shall be computed
to include any amounts not shown to be paid by the records of the
seller to the satisfaction of the tax collector.
3. When any person is engaged in an occupation or business to which
Section 79.03-3 is applicable, such person's books shall be kept so
as to show separately the gross proceeds of sale of tangible
personal property and the gross income from sales of nontaxable
service, and if not so kept, the tax shall be based upon the total
of such person's gross proceeds of sales of tangible personal
pi-operty and gross income from service.
4. When any person is engaged in the business of selling tangible
personal property at both wholesale and retail, the retail rate
shall be applied only to the gross proceeds of the sales made
other than at wholesale when such person's books are kept so as to
show separately the gross proceeds of sales of each class, and when
such books are not so kept, the retail rate shall be applied to
the gross proceeds of every sale so made.
5. For the purpose of Section 79.03-31 the total amount of gross income,
gross receipts or gross proceeds of sale shall be deemed to be the
amount of the sale, exclusive of the tax imposed by Section 79.03-3,
providing the person upon whom the tax is imposed shall establish
to the satisfaction of the tax collector that any tax collected
from customers has been added to the sale price and not absorbed
by him.
Sec. 79.03-4 EXEMPTIONS
The following shall not be subject to taxation under this article:
A. Any business calling, profession or occupation where the general
law of the State of Arizona or general law of the United States
of America preclude the levying of such a tax.
B. Sales in interstate or foreign commerce when prohibited from being
so taxed by the Constitution or general laws of the United States
or by the Constitution of the State of Arizona.
C. Professional services, instruction and other services not connected
with the making of retail sales.
D. Contracting, retail sales and any other taxable activity for the
( Town of Marana . )
E. Sales of gasoline upon which a tax has been imposed under the provisions
of Title 28, Chapter 9, Article 9, Arizona Revised Statutes.
F. Sales of tangible personal property to a person licensed as a contractor
under Title 32, Chapter 10, Arizona Revised Statutes, who holds a valid
privilege tax permit for engaging in or continuing in the business of
contracting when the property so sold is incorporated or fabricated by
the contractor into any structure, project, development or improvement
in fulfillment of a contract therefor.
G. Sales of tangible personal property made directly to the United States
Government, its departments or agencies,by the manufacturer, modifier,
assembler or repairer. A deduction of .fifty percent shall be permitted
where such sales are made by persons other than those specified in the
previous sentence.
H. Sales of tangible personal property by persons engaging in or continuing
in the business of processing, manufacturing, fabricating, modifying,
assembling or repairing, when such sales are made for resale and not
at retail and not to an ultimate consumer.
I. Sales of tangible personal property to manufacturers, modifiers or
assemblers where such property directly enters into and becomes an
ingredient or component part of any manufactured, fabricated or
processed article, substance or commodity for sale in the regular
course of business.
J. Services provided in connection with retail sales if invoices to the
customer, sales tickets, cash register tapes and all other business
records show separate charges for such services. This exemption shall
apply only where such service is not customarily included in the
retail sale itself and where such service is not an essential element
in the retail sale itself. No deduction shall be allowed for fabrication
labor of retail items sold.
K. Sales of tangible personal property in which all of the following occur
without the (Town) limits of the (Town of IVIarana. )
1. The placement of the order.
2. The stock from which delivery was made.
3. The transference of title and possession.
For the purposes of this exemption, any person engaging or continuing
in the business to which this exemption is applicable shall maintain
and keep accounting records or books indicating separately the gross
proceeds of sale or gross income of tangible personal property which
occur without the (Town) limits, and if not so maintained the tax to
be imposed will be upon the total of such person's gross proceeds of
sale or gross income.
L. The sale of drugs on the prescription of a member of the medical, dental
or veterinary profession who is licensed by law to administer such drugs.
M. Tangible personal property purchased in Arizona by any hospital organized
and operated exclusively for charitable purposes, and in which no part
of the net earnings inures to the benefit of any private shareholder or
individual, or by any hospital operated by the state or any political
subdivision of the state.
N. The sale of stocks or bonds.
0. Sales of machinery or equipment to be used directly in manufacturing,
processing, fabricating, job printing, refining or metallurgical
operations, including leaching, milling, precipitating, smelting and
refining.
P. Sales of machinery or equipment to be used directly in the process of
extracting ore or minerals from the earth for commercial purposes,
including equipment required to prepare the materials for extraction
and for the handling, loading or transportation of such extracted
material to the surface.
Q. Sales to telephone or telegraph companies of central office switching
equipment, switchboards, private branch exchange equipment, microwave
radio and carrier equipment and coaxial cable.
R. Sales of machinery, equipment or transmission lines to be used directly
in the production or transmission of electrical power, but not for such
machinery, equipment or transmission lines that are to be used for
distribution and not for transformers and control equipment to be used
at transmission substation sites.
S. Sales of pipes or valves four inches in diameter or larger to be used
for transporting oil, natural gas, artificial gas, water or coal slurry.
T. Sales of aircraft, navigational and communication instruments and other
accessories and related equipment to be used in conjunction with or to
become part of aircraft to be used in the transportation of persons,
property or U.S. Mail in intrastate, interstate or foreign air transpor-
tation for hire by airlines holding a federal or state certificate of
public convenience and necessity or holding a foreign air carrier permit.
U. Sales of railroad rolling stock, rails, ties and signal control equip-
ment to be used directly in the transportation of persons or property
in intrastate or interstate transportation for hire.
V. Sales of machinery or equipment to be used directly in the drilling
for oil or gas or used directly in the process of extracting oil or
gas from the earth for commercial purposes.
Sec. 79.03-5 Administration and Procedures
A. Vested Administration and Payment of Tax. The administration of this
article is vested in and exercised by the (Town of M&rana,) except
as otherwise specifically provided, and all payments shall be made
to the (Town of Marana. ) If payment is made in any other form than
money which is legal tender in the State of Arizona and the United
States of America, the tax obligation shall not be ended until the
check, bank draft or money order has been honored by the person on
whom drawn.
B. Presumption That all Gross Recei-ats are Taxable. For the purpose
of the proper administration of this article and to prevent evasion
of the tax hereby imposed, it shall be presumed that all gross
receipts are subject to the tax until the contrary is established
by the person seeking the exemption from said taxation.
C. Burden of Proving Sale Was Not at Retail. The burden of proving
that a sale of tangible personal property was not a sale at retail
shall be upon the person who made it, unless such person shall
have taken from the purchaser a certificate to the effect that
the property was purchased for resale.
D. Tax Imposed Is Cumulative and Su-a-plemental to Others. The tax
imposed by this article shall be cumulative and supplemental to
all other taxes levied by law.
E. Records of Taxpayer. It shall be the duty of every person engaging
or continuing in business activities within this (Town) for which
a pri-Alege tax is imposed by this article to keep and preserve
for a minimum of three years, suitable records of the gross income,
gross receipts of sales, invoices for goods and merchandise purchased
and sold, resale certificates, job labor records and all other
such books or accounts as shall be necessary to determine the amount
of tax for which such person is liable under the provisions of this
article. Collection of back privilege taxes by the (Town) shall
be limited to a period of three years prior to the date when the tax
collector began an audit of the taxpayer's books, wrote to the person
through use of ordinary mail concerning an apparent violation of the
article, or took some other recorded action to require a privilege
tax permit application or other compliance with the article.
All records mentioned in this subdivision above, shall be open for
examination at any time by the tax collector.
F. Diyulaina of Information Forbidden. It is unlawful for any officer,
employee or agent of the (Town of Marana) to make known in any
manner whatsoever the business affairs, operations or information
obtained by an investigation of records and equipment of any person
visited or examined in the discharge of his official duty, or the
amount or source of income, profits, leases, expenditures or any
particular thereof, set forth or disclosed in any return or report,
or the amount of tax paid. The council may, by motion, authorize
an examination of the reports made pursuant to this article by the
United States Director of Internal Revenue or the proper officials
of the State of .Arizona. Successors, receivers, trustees, executors,
administrators and assignees, if directly interested, may be given
information as to the items included in the measure and amounts of
any unpaid tax or amounts of tax required to be collected, interest
and penalties. Divulging of applicable information to any author-
ized employee or agent of an incorporated city or town shall be
permitted when an employee or agent of another incorporated city or
town is authorized by the tax collector to conduct audits for the
(Town of Marana.) Information supplied on privilege permit applica-
tions shall not be considered as confidential. Any officer, employee
or agent of the (Town of Nkrana) shall be authorized to divulge such
confidential information as may be necessary upon the order of a
court of competent jurisdiction.
G. Inadequate Records. In the event the records of the gross income,
gross receipts or gross proceeds of sales of the business, kept by the
taxpayer, are deemed by the tax collector to be unsuitable, or the
taxpayer does not keep such other books or records as may be necessary
to determine the amount of the tax for which he is liable under the
provisions of this article, the tax collector may prescribe the form and
manner of keeping such books and records. In the event the taxpayer
fails or refuses to follow such prescribed form, and the tax collector
cannot ascertain from the records kept by the taxpayer the gross income,
gross receipts or gross proceeds of sale of the business or the
amount of the tax for which -the taxpayer is liable under the provisions
of this article, the tax collector may proceed as though such taxpayer
failed or refused to make a return in the manner prescribed by this
article.
H. When Tax Payable. Except as otherwise specified in this article, the
taxes levied under this article shall be due and payable on or before
the fifteenth day of the month next succeeding the period in which the
tax accrues and shall be delinquent five days thereafter. The taxpayer
shall, on or before the fifteenth day of the stated month, make out a
return showing the gross amount, any authorized deductions, taxable
amount and amount of the tax due for the preceding month. The taxpayer
shall be required to use the report form authorized by the tax collector,
and shall mail or deliver the same, together with remittance for the
amount of tax due, payable to the (Town of Marana,) to the tax collector
or any (Town) employee authorized to receive such payment. The tax
return shall be signed by the taxpayer or his authorized agent, and
such signature shall be evidence that the person signing the return
verifies the accuracy of the information supplied in the return.
1. In any case where the taxpayer has a reported total "taxable
amount" of fifteen hundred dollars or less for the previous
calendar quarter of the year, the taxpayer may make application
to report and pay the tax on a quarterly basis, upon the written
approval of the tax collector. Any taxpayer on a quarterly
reporting basis must report and pay accrued tax due on or
before the fifteenth day of the month following the calendar
quarter to be reported.
2. If the taxpayer later reports a total "taxable amount" for any
quarter of fifteen hundred dollars or more, he shall report and
pay on a monthly basis.
I. Cash Receipts or Accrual Basis. The taxpayer may elect to file
returns and pay his tax either on a cash receipts or accrual basis,
but the taxpayer shall not change from one basis to the other,
without the prior written approval of the tax collector. As a
condition of granting such approval, the tax collector may require
an audit of the taxpayer's records.
J. Consolidated Returns. Any person engaging in two or more forms of
business of like classification taxable under this article may file
a consolidated return covering all business activities of like
classification in which he is engaged within the (Town.)
K. Extension of Time for Making Returns. The tax collector may for
good cause extend the date for making any return required under
the provisions of this article, but the date for filing such return
shall not be extended beyond the fifteenth day of the second month
next succeeding the regular due date.
L. Penalty for Delinquency. Any taxpayer who shall have failed to
pay such tax within five days from the date upon which such payment
shall have become due shall be subject to and shall pay a penalty
of ten percent of the amount of such tax, together with interest
on such tax at the rate of one-half of one percent per month or
fraction thereof until paid.
M. Correction of Errors. If the taxpayer makes an error or errors in
computing the tax assessable against him, the tax collector shall
correct such error and notify the taxpayer promptly by ordinary mail
that such correction has been made. Any additional tax for which the
taxpayer becomes liable shall be payable within ten days after the
letter or form showing the correction is mailed to the taxpayer. If
the taxpayer makes an error which results in overpayment of tax, the
tax collector shall allow credit against tax due on future returns
or shall authorize a refund to the taxpayer.
N. Duties of Person Quitting Business, His Successor or Assignee. Any
person who sells his business or stock of goods or quits business
shall be required to make the return provided for under this article
within fifteen days after the date he sold his business or stock of
goods or quit business, and his successor in business or assignee
shall be required to withhold a sufficient amount of the purchase
money to cover the amount of said taxes due and unpaid until such
time as the former owner shall produce a receipt from the tax collector
showing that the taxes have been paid, or a certificate that no taxes
are due.
1. If the purchaser of a business or stock of goods shall fail to
withhold purchase ma-jney as above provided and the taxes shall
be due and unpaid after the fifteen -day period herein provided,
he shall be personally liable for the payment of the taxes accrued
and unpaid on account of the operation of the business by the
former owner.
2. Transaction privilege tax liability of the purchaser shall be
limited to no more than that accrued during a period of one full
year prior to date such business purchase becomes effective.
3. It is unlawful for the purchaser to refuse or fail to pay the
back taxes accrued during said period within thirty days after
the tax collector mails a letter or other notice by ordinary
mail to the purchaser requesting such payment of back taxes.
0. Tax Mall Be Lien. The tax imposed by this article, if not reported
and paid by the due date specified by this article, shall constitute
a lien on the property of any person subject to this article. The
procedure to perfect such lien shall be as follows:
1. The tax collector shall give written notice to the taxpayer
at his last known mailing address by certified or registered
mail, or such notice may be sent to the address at which the
business is conducted. This written notice shall indicate
that the (Town) will file a l;en on the subject property unless
the taxpayer reports and pays all the tax past due including
any penalties and interest due under this article or provides
satisfactory evidence to the tax collector that no taxes are
due, within a period of thirty days from service or receipt
of said written notice.
2. If the taxpayer does not pay taxes due or provide evidence that
no taxes are due within thirty days after service or receipt of
said written notice, the tax collector may prepare in triplicate
copies of a "Notice and Claim of Lien" and file one copy with the
county recorder of the county in which the property is located.
The tax collector shall then send by certified or registered mail
a copy to the taxpayer at his last know mailing address or at
the address at which the business is conducted. The "Notice and
Claim of Lien" shall contain the following:
a. A description of the property sufficient for identification.
b. The name of the taxpayer as owner or reputed owner of the
property.
C. The amount of the delinquent tax, including penalties and
interest; or if this amount cannot be determined precisely
because suitable records and books were not made available
by the taxpayer, the amount assessed, including penalties
and interest, by the tax collector as authorized by this
article when such books and records are not available
or are unsuitable.
From and after the date of its recording in the office of the county
recorder, the lien shall attach to the property until paid. A
sale of the property to satisfy the lien shall be made upon judgment
of foreclosure and order of sale. The (Town) shall have the right
to bring an action to enforce the 171en in the superior court of
the county in which the property is located, at any time after its
recording, but failure to enforce the lien by such action shall not
affect its validity. The recorded "Notice and Claim of Lien" shall
be prima facie evidence of the truth of all matters recited therein
and the regularity of all proceedings prior to the recording therein.
A prior recording for the purposes provided in this section shall
not be a bar to the subsequent recording of a lien for such purposes
and any number of such liens on the same property may be enforced
in the same action.
P. Tax Collector may Examine Books and Pavers. The tax collector may
examine any books, papers, records or other data bearing upon the
correctness of any return or for the purpose of making a return where
none has been made, as required by the provisions of this article.
If any person shall fail to appear before the tax collector or to
answer any material question or to produce any books, records, papers
or other data when requested to do so, such failure or refusal shall
be reported to the (Town) attorney, who shall thereupon institute
proceedings in the superior court of the county where such witness
resides to obtain compliance.
Q. Taxpayer's liability. The liability of the taxpayer for taxes due
shall remain the same, whether he collects sufficient added payments
from his customers to cover such taxes due.
1. Where the taxpayer fails to show "tax collected", deductible "repair
labor" and other deductible "service" on invoices to customers,
sales slips and cash register slips, and on all applicable books
and records, he shall be liable for taxation on his full gross
receipts without allowance for such items.
2. The burden of proof for all deductions by any taxpayer shall be on
the taxpayer, who must prove to the satisfaction of the tax collector
that such deductions shall have been legal and proper under this
article. A person taking deductions for "resale" or for "payments
to subcontractors" shall not take such deductions unless the persons
for whom the deductions are taken have obtained the required
privilege tax permits.
R. Tax Liabilities of Partners. All taxes assessed under the provisions
of this section upon the business activities of a partnership shall
be a liability and charges against each and all of the individual
partners; but when paid by the partnership, such liability against
each and all of the individual partners shall cease.
Sec. 79.03-6 Assessment and Appeal
A. Assessment Procedure. If any person who is required to file a return
under the provisions of this article fails or refuses to make
a return, the tax collector shall proceed, in such manner as he
may deem best, to obtain facts and information on which to base
the assessment of the tax herein prescribed; and to this end the
tax collector may make examination of the books, records and papers
of any such person; and may take the evidence on oath of any person
whom he may believe to be in possession of facts or information
pertinent to the subject of inquiry, which oath the tax collector
may administer. If no other information is readily available, the
tax collector may make a reasonable judgment on the basis of past
reports by the taxpayer or by any predecessor. When the tax collector
has reached a decision as to the assessment, he shall notify the
taxpayer in writing of such assessment, which shall become final
within thirty days after such notice has been mailed or served,
unless the taxpayer shall notify the tax collector in writing of a
request for a tax hearing within said thirty days.
B. Hearinc at Taxpayer's Request. When a taxpayer requests a hearing
as indicated in Section 79.03-6 (A), such hearing shall normally be
held in the offices of the (Town of Marana) provided, that the tax
collector rmy choose another suitable room in the same (Town) or by
mutual agreement with the taxpayer, he may hold the hearing in such
other place as may prove desirable. The hearing shall be conducted
by the tax collector, and it shall be closed to all except the tax
collector and his authorized representatives and the taxpayer and
his authorized representatives, unless the taxpayer agrees in writing
to waive restrictions on release of confidential information. The
tax collector shall provide the taxpayer with not less than ten day's
notice of the date, time and place of the hearing. During the hearing
the taxpayer or his authorized representative may present any evidence
he deems appropriate to the issues or questions under consideration.
Within fifteen days after the conclusion of the hearing, the tax
collector shall affirm, modify or vacate any decision made with respect
to the issues or questions discussed in the course of the hearing.
Notice of said decision shall be provided to the taxpayer by the tax
collector as provided in this article, and said decision shall be
effective in ten days after service of notice.
C. Payment Under Protest. If any person feels aggrieved by a tax assessment
or believes that any or all of his activities are not subject to the
privilege tax required by this article, he shall pay the amount of
such assessment or tax claimed due before the delinquent date and
shall at that time give notice in writing to the tax collector that
all or part of such payment is made under protest, and shall in the
notice give the grounds and reasons for such protest and that a
certain part thereof or that the total sum is protested.
1. Within ten days after receipt of such protest, the tax collector
shall reply in writing to the last known mailing address of the
taxpayer, stating whether the assessment or tax applied is to be
changed as re quested, and giving reasons for the decision.
2. If the taxpayer is then dissatisfied, he may take appropriate
action in the superior court to recover payments made under
protest. Court action shall be taken within sixty days after
the tax collector has mailed his reply as required by subsection
1, above. Failure to take court action within the required
sixty day period shall make the protest null and void.
3. If court action has been taken by the taxpayer under subsection 2
above, all subsequent payments due shall be paid on or before the
due date. However, if each tax form is plainly marked "Paid Under
Protest", such subsequent payments shall be treated as part of the
original protest until such time as court remedies have been
exhausted or the court action withdrawn by the taxpayer.
D. Collection of Delinquent Taxes.
1. If any tax imposed by this article, or any portion thereof, is
not paid within thirty days after the same becomes delinquent,
the tax collector shall be empowered to commence court action
in any appropriate court of competent jurisdiction to collect
tax, penalties and interest due, and to utilize any and all
appropriate remedies as authorized under the laws of the State
of Arizona. Such actions may be commenced whether separate
criminal charges have been filed to cover alleged failure
to comply with this article.
2. Every tax imposed by this article and all increases, interest
and penalties thereon, shall become, from the time the same is
due and payable, a personal debt from the person liable to the
(Town) and it shall be payable to and recoverable by the tax
collector.
E. Adoption of Administrative Procedure. The council is hereby authorized
to adopt written administrative regulations to implement the enforce-
ment of this article or to further define terms used in the article.
Such administrative regulations shall be enforceable as though they
were integral portions of the article itself.
F. State of Arizona Administrative Procedures. Except where such regula-
tions would conflict with administrative regulations adopted by the
council or with provisions of this article, all regulations on the
transaction privilege tax adopted by the State Tax Commission under
the authority of Title 41, Chapter 6, Article 1, Arizona Revised
Statutes and amendments thereto, shall be considered as part of
this article and enforceable as such.
Sec. 79.03-7 Violations
A. Advertisement Regarding Taxes. It is unlawful for any person
engaged in any of the businesses classified in Section 79.03-3
to advertise or hold out to the public in any manner, directly
or indirectly, that the tax herein imposed is not considered as
an element in the price to the consumer.
B. Permit Reauired. It is unlawful for any person engaging in a
business subject to the (Town) transaction privilege tax to fail
to obtain a permit before beginning or continuing such business.
C. Tax Collection from Customers. Any person who collects added
payments from customers stated or indicated to be for the purpose
of meeting privilege tax obligations of such person, shall be re-
quired to use such money only for such purpose. It is unlawful
for any person to fail to pay privilege tax due to the (Town of
Marana) within a period of thirty days after the date such tax
is due if evidence is provided that such person has at any time
collected such added payments from customers.
D. Failure to Make Return. It is unlawful for any person or for
any officer or agent of any company or corporation to fail or
refuse to make the returns and to pay tax provided to be made
by the provisions of this article, or to make or permit to be
made any false or fraudulent return or false statement in any
return required by this article; or for any reason to aid or abet
another in any attempt to evade the payment of the tax, or any
part thereof, imposed by this article; or for any person or officer
or agent of a company to fail or refuse to permit the examination
of any book, paper, account, record or other data by the tax
collector as required by this article; or to violate any of the
other provisions of this article.
PASSED AND ADOPTED BY THE TOWN COUNCIL OF THE TOWN OF MARANA, ARIZONA
THIS 20th DAY OF November , 1979
ATTEST:
Town Clerk
Mayor
AMENDMENT TO ORDINANCE 79.03
TRANSACTION PRIVILEGE TAX
Whereas the Arizona State Legislature has exempted retail sales
of food from the State Transaction Privilege Sales Tax law under which
the Town of Marana levies a Transaction Privilege Sales Tax which is
collected for the Town by the Arizona Department of Revenue, and
Whereas the Town of Marana wishes to be in -conformance with
Arizona Law,
Now therefore be it enacted by the Common Council of the Town of
Marana that the existing Privilege Transaction (Sales) Tax ordinance
of the Town of Marana, Ordinance 79.03, shall be amended as follows:
Section 79.03-4 EXEMPTIONS
W. SAles of food for preparation and consumption off premises as
defined by the regulations of the Arizona Department of Revenue, in
accordance with Arizona Law.
ADOPTED BY THE COMMON COUNCIL OF THE TOWN OF MARANA, ARIZONA, THIS
16th DAY OF JUNE, 1980.
Ted A. DeSpain
MAYOR
ATTEST:
Dorothy . Honeycutt
TOWN CLERK
AMENDMENTS TO ORDINANCE 79.03
TRANSACTION PRIVILEGE TAX
Whereas the Arizona State Legislature has changed the State Transaction
Privilege Tax law under which the Town of Marana levies a Transaction
Privilege Tax which is collected for the Town by the Arizona Department
of Revenue, and
Whereas the Town of Marana wishes to be in conformance with Arizona
Law,
Now therefore be it enacted by the Common Council of the Town of
Marana that the existing Privilege Transaction (Sales) Tax ordinance
of the Town of Marana, Ordinance 79.03, shall be amended as follows:
Section 79.03-5
H. When Tax Payable. Except as otherwise specified in this article
the taxes levied under this article shall be due and payable on or before
the ffftOOO ff FIRST day of the SECOND month next succeeding the period in
which the tax accrues and shall be delinquent five days thereafter. The
taxpayer shall, on or before the fjfZ000t� FIRST day of the stated month,
make out a return showing the gross amount, any authorized deductions,
taxable amount, and amount of the tax due for the SECOND'prededing month.
The taxpayer shall be required to use the report form authorized by the
tax collector, and shall mail or deliver the same, together with remittance
for the amount of tax due, payable to the Town of Marana, to the tax
collector or any Town employee authorized to receive such payment. The
tax return shall be signed by the taxpayer or his authorized agent, and
such signature shall be evidence that the person signing the return
verifies the accuracy of the information supplied in the return.
/¢X���/����/�/�/�����• FOR ANY TAXPAYER WHOSE ESTIMATED
ANNUAL LIABILITY FOR TAXES IMPOSED BY THIS ARTICLE IS ONS' HUNDRED
DOLLARS (1100.00) OR LESS, THE TAX COLLECTOR MAY AUTHORIZE SUCH
TAXPAYER TO PAY SUCH TAXES ON AN ANNUAL BASIS. FOR ANY TAXPAYER
WHOSE ESTIMATED ANNUAL LIABILITY FOR TAXES IMPOSED BY THIS ARTICLE
IS BETWEEN ONE HUNDRED DOLLARS ($100.00) AND 'TW6 HUNDRED AND FIFTY DOLLARS
($250.00), THE TAX COLLECTOR MAY AUTHORIZE SUCH TAXPAYER TO PAY
SUCH TAXES ON A QUARTERLY BASIS.
2.
L. Penalty for Delinquency. Any Taxpayer who shall have failed to
pay such tax within five days from the date upon which such payment shall
have become due shall be subject to and shall pay a penalty of ten percent
of the amount of such tax, together with interest on such tax at the rate
of 000f0$xf/ff one percent per month or fraction therof until paid.
ADOPTED BY THE COMMON COUNCIL OF THE TOWN OF MARANA, ARIZONA, THIS
3rd DAY OF JUNE, 1980.
Ted A. DeSpain
MAYOR
ATTEST:
Dorothy M. Honeycutt
TOWN CLERK