HomeMy WebLinkAboutORD1129ORDINANCE NO.1129
AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE
JUNCTION,ARIZONA,RELATING TO THE TRANSACTION PRIVILEGE LICENSE TAX
(SALES TAX);AMENDING THE TAX CODE OF THE CITY OF APACHE JUNCTION BY
INCREASING THE RATE OF TAXATION BY TWO -TENTHS OF ONE PERCENT (.2%);
DESIGNATING THE PURPOSE:DESIGNATING AN EFFECTIVE DATE;DESIGNATING A
TERMINATION DATE;PROVIDING FOR EXISTING CONTRACTS;PROVIDING FOR
PENALTIES .: REPEALING ANY CONFLICTING PROVISIONS;PROVIDING FOR
SEVERABILITY:AND DECLARING AN EMERGENCY.
WHEREAS,Arizona Revised Statutes §9-240(B)(26)conveys upon the Mayor and
City Council the power to levy taxes including a transaction privilege license
tax (sales tax):and
WHEREAS,the Mayor and City Council have held three public hearings on the
Capital Facilities Plan 2000 on November 16,1999,December 7,1999 and April
18,2000:and
WHEREAS,the Mayor and City Council,through communication with community
residents,have chosen to pursue construction of nine major capital facilities
projects as set forth in the Capital Facilities Plan 2000 in order to improve
the quality of life for community residents and enhance the public's health,
safety and welfare:and
WHEREAS,the Mayor and City Council have determined that the tax increase as
set forth in this ordinance is necessary to accomplish construction of the
projects as described in the Capital Facilities Plan 2000:and
WHEREAS,i t is the intention of the Mayor and City Council that the tax
increase as set forth in this ordinance shall not'extend beyond September 1,
2010:and
WHEREAS,changes to the transaction privilege tax (sales tax)rate are
affected by amending the Tax Code of the City of Apache Junction and by
appropriate notification to the Arizona Department of Revenue:and
WHEREAS,in accordance with the Agreement for Collection of Taxes between the
Arizona Department of Revenue and the City of Apache Junction,a minimum of
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sixty (60)days notice is required before the effective date of any change
regarding the collection of taxes.
NOW,THEREFORE,BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
APACHE JUNCTION,ARIZONA,AS FOLLOWS:
SECTION I IN GENERAL
A.The tax rate in each of the following sections of the city tax code is
increased from two percent (2%)to two and two -tenths percent (2.2%):
Section 8A-405 Advertising.
Section 8A-410 Amusements,exhibitions,and similar activities.
Section 8A-415 Construction contracting:construction contractors.
Section 8A-416 Construction contracting:speculative builders.
Section 8A-417 Construction contracting:owner -builders who are not
speculative builders.
Section 8A-420 Feed at wholesale.
Section 8A-425 Job printing.
Section 8A-427 Manufactured buildings.
Section 8A-430 Timbering and other extraction.
Section 8A-435 Publishing and periodicals distribution.
Section 8A-440 Rental occupancy.
Section 8A-444 Hotels.
Section 8A-445 Rental,leasing,and licensing for use of real property.
Section 8A-447 Additional tax upon transient lodging.
Section 8A-450 Rental,leasing,and licensing for use of tangible
personal property.
Section 8A-455 Restaurants and Bars.
Section 8A-475 Transporting for hire.
B.The tax rate in the following sections of the city tax code is increased
from three percent (3%)to three and two -tenths percent (3.2%).
Section 8A-470 Telecommunications services.
Section 8A-480 Utility services.
C.Section 8A-460 of the city tax code is amended to read:
Sec.8A-460.Retail sales:measure of tax:burden of proof;exclusions.
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(a)The tax rate shall be at an amount equal to two and two -tenths percent
(2.2%)of the gross income from the business activity upon every person
engaging or continuing in the business of selling personal property at
retail.
(b)The burden of proving that a sale of tangible personal property is not a
taxable retail sale shall be upon the person who made the sale.
(c)Exclusions.For the purposes of this Chapter,sales of tangible
personal property shall not include:
(1)sales of stocks,bonds,options,or other similar materials.
(2)sales of lottery tickets or shares pursuant to Article 1,Chapter
5,Title 5,Arizona Revised Statutes.
(3)sales of platinum,bullion,or monetized bullion,except minted or
manufactured coins transferred or acquired primarily for their
numismatic value as prescribed by Regulation.
(4)gross income derived from the transfer of tangible personal
property which is specifically included as the gross income of a
business activity upon which another Section of this Article
imposes a tax,shall be considered gross income of that business
activity,and are not includable as gross income subject to the
tax imposed by this Section.
(5)sales by professional or personal service occupations where such
sales are inconsequential elements of the service provided.
(0)Notwithstanding the provisions of subsection (a)above,when the gross
income from the sale of a single item of tangible personal property
exceeds two thousand dollars ($2,000).the two and two -tenths (2.2%)tax
rate shall apply to the first $2,000.Above $2,000,the measure of tax
shall be at a rate of one and two -tenths percent (1.2%).
(e)When this City and another Arizona city or town with an equivalent
excise tax could claim nexus for taxing a retail sale,the city or town
where the permanent business location of the seller at which the order
was received shall be deemed to have precedence,and for the purposes of
this Chapter such city or town has sole and exclusive rights to such
tax.
(f)The appropriate tax liability for any retail sale where the order is
received at a permanent business location of the seller located in this
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City pr in an Arizona city or town that levies an equivalent excise tax
shall be at the tax rate of the city or town of such seller's location.
(g)Retail sales of prepaid calling cards or prepaid authorization numbers
for telecommunications services,including sales of reauthorization of a
prepaid card or authorization number,are subject to tax under this
Section.
SECTION I I DESIGNATING THE PURPOSE
For such period of time that the City of Apache Junction,Arizona,levies the
tax as described in Section 1 above,the revenues collected from the two-
tenths of one percent (.2%)increase shall be used to accomplish the
construction of the nine capital projects as described in the Capital
Facilities Plan 2000 as accepted by the Mayor and City Council on December 7,
1999.
SECTION III DESIGNATING AN EFFECTIVE DATE
The provisions of this ordinance shall become effective on September 1,2000.
SECTION IV DESIGNATING A TERMINATION DATE
The provisions of this ordinance shall terminate on September 1,2010,at
which time the tax rates as set forth in Section I of this ordinance shall be
automatically reduced by two -tenths of one percent (.2%).
SECTION V PROVIDING FOR EXISTING CONTRACTS
The tax increase imposed pursuant to Section I of this ordinance shall not
apply to contracts entered into prior to the effective date of this ordinance.
SECTION VI PROVIDING FOR PENALTIES
Any person found guilty of violating any provision of these amendments to the
tax code shall be guilty of a class one misdemeanor and shall be prosecuted
pursuant to Article 1-8 of the Apache Junction City Code and Section 8A-580 of
the Tax Code of the City of Apache Junction.
SECTION VII REPEALING ANY CONFLICTING PROVISIONS
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All ordinances and parts of ordinances in conflict with the provisions of this
ordinance or any part of the code adopted herein by reference are hereby
repealed.
SECTION VIII PROVIDING FOR SEVERABILITY
If any section,subsection,sentence,clause,phrase or portion of this
ordinance 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 IX DECLARING AN EMERGENCY
Whereas i t is necessary for the preservation of the peace,health and safety
of the City of Apache Junction,Arizona,an emergency is declared to exist,
and this ordinance shall become immediately operative and in force from and
after the date of posting.
PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE
JUNCTION,ARIZONA,THIS 16TH DAY OF MAY 2000.
SIGNED AND ATTESTED TO THIS 16TH
ATTEST:
KATHLEEN CONNELLY
City Clerk
APPROVED AS TO FORM:
53_-
RICHARD J.STERN
City Attorney
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DAY OF MAY 2000.
DOUGLAS CULEMAN
Mayor