HomeMy WebLinkAboutORD1140ORDINANCE NO.1140
AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE
JUNCTION,ARIZONA,RELATING TO THE TRANSACTION PRIVILE
AMENDING THE TAX CODE OF THE CITY OF APACHE JUNCTION BY,
"CITY OF APACHE JUNCTION TAX CODE AMENDMENTS ON THE
REFERENCE;DESIGNATING AN EFFECTIVE DATE;PROVIDING E
REPEALING ANY CONFLICTING PROVISIONS;PROVIDING F
AND DECLARING AN EMERGENCY.
TAX;
ADOPTING
E TAX"BY
PENALTIES;
SEVERABILITY;
WHEREAS,Arizona Revised Statutes Annotated §9-240(E9426)conveys upon the Mayor
and City Council the power to levy taxes including/a use tax;and
WHEREAS,the primary purpose of a use tax is to raise revenues to be used in
O Y
defraying the necessary expenses of f i t to ,i ude those expenses related
to the public's health,welfare and sa ,and 0
/
WHEREAS,additional purposes of
city based upon equal purc
issue when decisions are mad
the playing field for busine
and
ax -6q to motivate purchases within the
S;V remove the level of taxation as an
te 1/blisiness within the city;and to level
at/av continuing to operate within the city;
WHEREAS,the Mayor and City 9buncil discussed the adoption of a city use tax on
August 3,1999,October 17/2000,April 3,2001,June 19,2001 and on July 17,
2001;and
WHEREAS,adoption of aftity use tax is affected by amending the Tax Code of the
City of Apache Junctip6 and by appropriate notification to the Arizona Department
of Revenue;and
WHEREAS,in accqdance with the Agreement for Collection of Taxes between the
Arizona Departm,Ot of Revenue and the City of Apache Junction,a minimum of sixty
calendar (60)/days notice is required before the effective date of any change
regarding thp(collection of taxes.
//
ORDINANCE NO.1140
PAGE 1 OF 3
NOW,THEREFORE,BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
APACHE JUNCTION,ARIZONA,AS FOLLOWS:
SECTION I IN GENERAL
That certain document known as "City of Apache Junction Ta Code Amendments on
the Use Tax",three copies of which are on file in the Off-ce of the City Clerk,
which document was made public record by Resolution .00-32 of the City of
Apache Junction,Arizona,is hereby referred to,ado ed and made a part hereof
as is fully set out in this ordinance.
SECTION I I EFFECTIVE DATE
The provisions of this ordinance shall,. Wec9the eWctive on October 1,2001.
SECTION III PENALTIE
Any person found guilty of violaVng nyffirbvision of these amendments to the tax
code shall be guilty of a class one misdemeanor.Each day that a violation
continues shall be a separate offense punishable as herein above described.
SECTION IV REPEAL4NG ANY CONFLICTING PROVISIONS
l
All ordinances and parts f ordinances in conflict with the provisions of this
Aordinanceoranypart f the code adopted herein by reference are hereby
repealed.
SECTION V /PROVIDING FOR SEVERABILITY
/ D e
If any section,s bsection,sentence,phrase,clause or portion of this ordinance
is for any reas held to be invalid or unconstitutional by the decision of any
court of comp ent jurisdiction,such decision shall not affect the validity of
the remainin portions thereof.
ORDINANCE NO.1140
PAGE 2 OF 3
CITY OFIt0 JUNCTION \\
TAX,PE ENDMENT5,\
ON C)
USE TA,/ "
CITY OF APACHE JUNCTION TAX CODE AMENDMENTS ON A USE TAX
Section 1.Section 8A-270 of the City Tax Code of the City of/Apache
Junction.Arizona,is amended to read:
Sec.8A-270.Exclusion of gross income of persons deemed npt engaged in
business.
(a)For the purposes of this Section,the following defi itions shall apply:
(1)"Federally Exempt Organization"means an or nization which has
received a determination of exemption,or qualifies for such
exemption,under 26 United States Code Section 501(c)and rules
and regulations of the Commissioner of Internal Revenue pertaining
to same,but not including(a "gover ental entity","non -licensed.business",or "public educaVo961
(2)"Government Entity"means r e derdq Government.the State of
Arizona,any other st4Je,orr anly political subdivision,
department,or agency o'an of .044 foregoing:provided further
that persons contrac itN /such a governmental entity to
operate any par e a go rtimentally adopted and controlled
‘program to proviv,rb n majA transportation shall be deemed a
governmental entli 1 a1,1 /activities such person performs when
engaged in said conVact
(3)"Non -Licensed Busi ess"Means any person conducting any business
activity for gal or profit,whether or not actually realized.
which person i not required to be licensed for the conduct of
transaction of activities subject to the tax imposed under this
Chapter.
(4)"Proorietar,0 Club"means any club which has qualified or would
otherwise qualify as an exempt club under the provisions of 26
United States Code Section 501(c)(7),(8),and (9).
notwit standing the fact that some or all of the members may own a
propr etary interest in the property and assets of the club.
(5)"Pue ic Educational Entit -means any educational entity operated
pufsuant to any provisions of Title 15,Arizona Revised Statutes.
(b)Trans ctions which,if conducted by any other person,would produce
gros income subject to tax under this Chapter shall not be subject to
th imposition of such tax if conducted entirely by a public educational
CITY OF APACHE JUNCTION TAX CODE
AMENDMENTS ON A USE TAX
ADOPTED BY ORDINANCE NO.1140
PAGE 1 OF 18
entity;governmental entity.except "proprietary activities"of
municipalities as provided by Regulation:or non -licensed business.
(c)Transactions which,i f conducted by any other person,would produce
gross income subject to the tax under this Chapter shall not oe subject
to the imposition of such tax i f conducted entirely by a federally
exempt organization or proprietary club with the followi 4 exceptions:
(1)Transactions involving proprietary clubs .and oroinizations exempt
under 26 United States Code Section 501(c)(7),8),and (9),where
the gross revenue of the activity received f'om persons other than
members and bona fide guests of members in an amount in excess
of fifteen percent (15%)of total gross revenue,as prescribed by
Regulation.In the event this fif -en percent (15%)limit is
exceeded,the entire gross income o ,such entity shall be subject
to the applicable tax.
(2)Gross income from unrelated b siness income as that term is
defined in 26 United(States Code Section 512,including all
statutory definitions ,n d erminations,the rules and
regulations of the Co9 i i t r of Internal Revenue,and his
administrative interprp'a ioryand guidelines.
(3)(Reserved)
(d)Except as may be p ovit-d -1segre in this Chapter,transactions where
'
customers are e zcls o nizations,proprietary clubs,public
educational entitle -II 'ever m0ental entities,or non -licensed businesses
shall be deemed taxa,e transactions for the purpose of the imposition
of taxes under this Chapter,notwithstanding that property so acquired
may in fact be re old or leased by the acquiring person to others.In
the case of sale .rentals,leases,or licenses to proprietary clubs or
exempt organiza ,ions,the vendor may be relieved from the responsibility
for reporting .nd paying tax on such income only by obtaining from its
vendee a ver led statement that includes:
(1)a sta ement that when the property so acquired is resold,rented,
lea -d,or licensed,that the otherwise exempt vendee chooses,or
is required,to pay City Privilege Tax or an equivalent excise tax
o its gross income from such transactions and does not in fact
ile returns on same;and
(2) /4 the Privilege License number of the otherwise exempt vendee;and
(3)/such other information as the Tax Collector may require.
CITY OF APACHE JUNCTION TAX CODE
AMENDMENTS ON A USE TAX
ADOPTED BY ORDINANCE NO.1140
PAGE 2 OF 18
(e)Franchisees or concessionaires operating businesses for or on behalf of
any exempt organization,governmental entity,public educational entity,
proprietary club,or non -licensed business shall not be considered to be
such an exempt organization,club,entity,or non-licens-o business,but
shall be deemed to be a taxpayer subject to the provisions of this
Chapter.except as provided in the definition of ernmental entity,
regarding urban mass transit.
(f)In any case,i f a federally exempt organizati ,dn.proprietary club,or
non -licensed business rents,leases,licenses or purchases any tangible
personal property for its own storage Or u.-,and no City Privilege or
Use Tax or equivalent excise tax has been oald on such transaction,said
organization,club,or business shall rde liable for the use tax upon
such acquisitions or use of such propejAy i
Section 2.Section 8A-300 of (the Ci Teof\Code of the City of Apache
Junction.Arizona.is amended to roadi ,L/
Sec.8A-300.Licensing require
(a)The following persons
Privilege License
($2.00),and no p
such activities un
(1)every personlide,
within the C
Chapter.
every persfì.engaging or continuing in business within the City,
storing using tangible personal property in this City upon
which a se tax is imposed by this Chapter.
every jerson required to report any pay a tax upon Rental
Occup ncy,as imposed by Section 8A-440.
(2)
(3)
e'application to the Tax Collector for a
nAd Ny a non-refundable fee of two dollars
all engdge or continue in business or engage in
shall have such a license:
iring to engage or continue in business activities
y upon which a privilege Tax is imposed by this
(b)A personjêngaged in more than one activity subject to City Privilege and
Use Ta s at any one business location is not required to obtain a
separate license for each activity:provided that,at the time such
pers makes application for a license,he shall list on such
app 'cation each category of activity in which he is engaged.The
11 ensee shall inform the Tax Collector of any changes in his business
a tivities,location,or mailing address within thirty (30)days.
CITY OF APACHE JUNCTION TAX CODE
AMENDMENTS ON A USE TAX
ADOPTED BY ORDINANCE NO.1140
PAGE 3 OF 18
(c)Limitation.The issuance of a Privilege License by the Tax Collector
shall in no way be construed as permission to opera a business
activity in violation of any other law or regulatio to which such
activity may be subject.
Section 3.Article VI of the City Tax Code of the Cil4 of Apache Junction,
Arizona,is amended to read:
Article VI -Use Tax
Sec.8A-600.Use Tax:definitions.
For the purposes of this article only,the ollowing definitions shall apply,
in addition to the definitions provided A)cle 1:
"Acquire (for storage or user epp9s urOse,rent,lease,or license for
storage or use.
"Retailer"also means any ID.t)
leasing tangible personal pxo
transactions subject to
had occurred within this
lling,renting,licensing for use,or
der circumstances which would render such
posed in Article IV,i f such transactions
"Storase (within the C I ,"means the keeping or retaining of tangible
personal property at a pla ,e within the City for any purpose,except for those
items acquired specifical y and solely for the purpose of sale,rental,lease,
or license for use in ,e regular course of business or for the purpose of
subsequent use solely •tside the City.
"Use (of tangible
i
rsonal property)"means consumption or exercise of any
other right or pow over tangible personal property incident to the ownership
thereof except th holding for the sale,rental,lease,or license for use of
such property in he regular course of business.
Sec.8A-601.///4 Reserved)
Sec.8A-602/(Reserved)
Sec.8A-610 Use Tax:imposition of tax;presumption.
CITY OF APACHE JUNCTION TAX CODE
AMENDMENTS ON A USE TAX
ADOPTED BY ORDINANCE NO.1140
PAGE 4 OF 18
(a)There is hereby levied and imposed,subject to all other provisions of
this Chapter,an excise tax on the storage or use in the City of
tangible personal property,for the purpose of raising re7ue to be
used in defraying the necessary expenses of the City,such axes to be
collected by the Tax Collector.
(b)The tax rate shall be at an amount equal to two and tØ -tenths percent
(2.2%)of the:
(1)cost of tangible personal property acquired f'om a retailer,upon
every person storing or using such property n this City.
(2)gross income from the business activity on every person meeting
the requirements of Subsection 8A -620(b or (c)who is engaged or
continuing in the business activity o'sales,rentals,leases,or
licenses of tangible personal prope ,"y to persons within the City
for storage or use within the C.y.to the extent that tax has
been collected upon such transa ion.
(3)cost of the tangible pers.al property provided under the
l e : 7
conditions of a warran.i.a .teryce,or service contract.
(4)cost of complimentary 1 pr v ded to patrons without itemized
charge by a restaurant otel other business.
(5)cost of food consum;,,y A owner or by employees or agents of
the owner or a r -t .rak br bar subject to the provisions of
Section 8A-45 oi t *s Chater.
/ /1
(c)I t shall be presumedjt t 01 tangible personal property acquired by any
person who at the t .me of such acquisition resides in the City is
acquired for stora e or use in this City,until the contrary is
established by the axpayer.
i t
(d)Exclusions.Fo/ the purposes of this Article,the acquisition of the
following shal not be deemed to be the purchase,rental,lease,or
license of t ngible personal property for storage or use within the
City:
(1)stoc ,bonds,options,or other similar materials.
(2)lot ery tickets or shares sold pursuant to Article 1,Chapter 5,
Ti le 5,Arizona Revised Statutes.
(3)P,ilatinum.bullion,or monetized bullion,except minted or
anufactured coins transferred or acquired primarily for their
numismatic value as prescribed by regulation.
(e)Notwithstanding the provisions of Subsection (a)above,when the amount
subject to the tax for any single item of tangible personal property
CITY OF APACHE JUNCTION TAX CODE
AMENDMENTS ON A USE TAX
ADOPTED BY ORDINANCE NO.1140
PAGE 5 OF 18
exceeds two thousand dollars ($2,000),the two and two -tenths percent
(2.2%)tax rate shall apply to the first $2,000.Above i $2,000,the
measure of tax shall be at a rate of one and two -tenths peVent (1.2%).
(f)(Reserved)
Sec.8A-620.Use Tax:liability for tax.
The following persons shall be deemed liable for t -tax imposed by this
Article;and such liability shall not be extinguishd until the tax has been
paid to this City,except that a receipt from a r ailer separately charging
the tax imposed by this Chapter is sufficient to elieve the person acquiring
such property from further liability for the ta to which the receipt refers:
(a)Any person who acquires tangible\ peceonal property from a retailer.
whether or not such retailer is elaayed jthis City,when such person
stores or uses said property witj
(b)Any retailer not located witA
licensing tangible personal
within the City,may obtai2/
the use tax on such trarkattihns
use tax to the extent Iuc'Ise ta
y.selling,renting,leasing,or
or storage or use of such property
e from the Tax Collector and collect
Such retailer shall be liable for the
is collected from his customers.
(c)Every agent within the C y of any retailer not maintaining an office or
place of business in t s City,when such person sells,rents,leases.
or licenses tangible rsonal property for storage or use in this City
shall,at the time o such transaction,collect and be liable for the
tax imposed by this Article upon the storage or use of the property so
transferred,unles such retailer or agent is liable for an equivalent
excise tax upon t e transaction.
/
(d)Any person wh acquires tangible personal property from a retailer
located in th City and such person claims to be exempt from the City
Privilege Ta or Use Tax at the time of the transaction,and upon which
no City Pr .vilege Tax was charged or paid,when such claim is no
sustainabl
(e)Every p/rson storing or using tangible personal property under the
conditions of a warranty,maintenance,or service contract.
CITY OF APACHE JUNCTION TAX CODE
AMENDMENTS ON A USE TAX
ADOPTED BY ORDINANCE NO.1140
PAGE 6 OF 18
Sec.8A-630.Use Tax:recordkeeping requirements.
All deductions,exclusions,exemptions,and'credits provi
are conditional upon adequate proof of documentation
III or elsewhere in this Chapter.
Sec.8A-640.Use Tax:credit for equivalent excise
jurisdiction.
In the event that an equivalent excise tax
tangible personal property which is acquired
City,full credit for any and all such taxe
Tax Collector but only to the extent use t A
by this Article.
d in this Article
as/required by Article
axes paid another
s been levied and paid upon
be stored or used within this
so paid shall be allowed by the
posed upon that transaction
/
Y )kF///6
Sec.8A-650.Use Tax:exclusion wh cqu-isltion subject to use tax is taxed
or taxable elsewhere91 n this)chapter;limitation.
The tax levied by this ArIic
city of tangible personal
from the sale,rental,lea
of the tax imposed by Arti
person who has acquired tangi
without paying the City Pc
vendor that the property w/s
sustainable,may not clai
section.
apply to the storage or use in this
y acquired in this City,the gross income
license of which were included in the measure
V of this Chapter:provided,however,that any
le personal property from a vendor in this City
vilege Tax because of a representation to the
not subject to such tax,when such claim is not
the exclusion from such use tax provided by this
Sec.8A-660.Use Tax:/exemptions.
The storage or use A this City of the following tangible personal property is
exempt from the us/tax imposed by this Article:
(a)Tangible p rsonal property brought into the City by an individual who
was not a esident of the City at the time the property was acquired for
his own se,i f the first actual use of such property was outside the
City,u less such property is used in conducting a business in this
City.
(b)Tangible personal property,the value of which does not exceed the
CITY OF APACHE JUNCTION TAX CODE
AMENDMENTS ON A USE TAX
ADOPTED BY ORDINANCE NO.1140
PAGE 7 OF 18
amount of one thousand dollars ($1,000)per item,acquired by an
individual outside the limits of the City for his personal use and
enjoyment.
(c)Charges for delivery,installation,or other cestomer services,as
prescribed by regulation.
(d)Charges for repair services,as prescribed by/egulation.
(e)Separately itemized charges for :warrant/.maintenance,and service
contracts.
(f)Prosthetics.
(g)Income -producing capital equipmd
(h)Rental equipment and rental
(1)Mining and metallurgic
(j)Motor vehicle fuel and ItiTe MueP ich are used upon the highways of this
State and upon which Alt x has been imposed under the provisions of
Article I or II,Chapter 6,Title 28,Arizona Revised Statutes.
(k)Tangible personal prop rty purchased by a construction contractor,but
not an owner -builder,when such person holds a valid privilege license
for engaging or cont nuing in the business of construction contracting,
and where the prop rty acquired is incorporated into any structure or
improvement to rea property in fulfillment of a construction contract.
(1)Sales of motor
this State i f
destination ou
(m)Tangible per
ingredient
the busin
newspapers
which is
publishiryg,or production
part of a product.
CITY OF APACHE JUNCTION TAX CODE
AMENDMENTS ON A USE TAX
ADOPTED BY ORDINANCE NO.1140
PAGE 8 OF 18
ehicles to nonresidents of this State for use outside
he vendor ships or delivers the motor vehicle to a
side this State.
onal property which directly enters into and becomes an
'r component part of a product sold in the regular course of
'ss of job printing,manufacturing,or publication of
magazines or other periodicals.Tangible personal property,
consumed or used up in a manufacturing,job printing,
not an ingredient nor componentprocessis
(n)Rental,leasing,or licensing for use of film,tap(or slides by a
theater or other person taxed under Section 8A -4t0.or by a radio
station,television station,or subscription telev .ion system.
/
(o)Food served to patrons for a consideration by/anyany person engaged in a
business properly licensed and taxed under Se tion 8A-455,but not food
consumed by owners,agents,or employees of uch business.
(p)Tangible personal property acquired b any nonprofit health care
facility,except when the property in fact used in activities
resulting in gross income from unrelat d business income as that term is
defined in 26 United States Code Sec on 512.
(q)Food purchased with food stamps p ovided through the food stamp program
1 2
established by the Food 5-La A o 977 (P.L.95-113:91 Stat.958.7
United States Code Sectio 11 seq.)or purchased with food
instruments issued under S •n 1 of the Child Nutrition Act (P.L.95-
627;92 Stat.3603:and P .9/N9:Section 4302:42 United States Code
Section 1786)but o JPy o e extent that food stamps or food
instruments were iag t y sedlto purchase such food.
(r)(Reserved)
(1)(Reserved)
(2)(Reserved)
(3)(Reserved)
(4)(Reserved)
(s)Groundwater measVring devices required by Arizona Revised Statutes
Section 45-604.
(t)(Reserved)
(u)Aircraft acyfuired for use outside the State,as prescribed by
regulation.
(v)Sales of ybod products by producers as provided for by Arizona Revised
Statutes $ections 3-561,3-562 and 3-563.
(w)(Reserve.d)
(x)(Reserved)
CITY OF APACHE JUNCTION TAX CODE
AMENDMENTS ON A USE TAX
ADOPTED BY ORDINANCE NO.1140
PAGE 9 OF 18
(y)(Reserved)
(z)(Reserved)
(aa)Tangible personal property used in remediation contr ting as defined in
Section 8A-100 and Regulation 8A-100.5.
Y 1
(bb)Materials that are purchased by or for pu icly funded libraries
including school district libraries..charter s ool libraries,community
college libraries,state university librarie)/or federal,state,county
or municipal libraries for use by the publi as follows:
(1)Printed or photographic materials.
(2)Electronic or digital media materi
(cc)Food,beverages,condiments and accelso ies used for serving food and
beverages by a commercial 'ai i r,a defined in Arizona Revised
;
Statutes Section 42-5061(A)(50,,at
e
r es the food and beverages to
its passengers,without addi, 'I .1 c Orge,for consumption in flight.
For the purposes of this s o e le\ "accessories"means paper plates,
plastic eating utensi s,i .p ns \paper cups,drinking straws,paper
sacks or other disposNle co taiders,or other items which facilitate
the consumption of fool
f \
(dd)Wireless telecommunicatio ,equipment that is held for sale or transfer
to a customer as an ind ement to enter into or continue a contract for
telecommunication servifes that are taxable under Section 8A-470.
(cc)(Reserved)
/
(ff)Alternative fuel a defined in Arizona Revised Statutes Section 1-215,
by a used oil fuel burner who has received a Department of Environmental
Quality permit t burn used oil or used oil fuel under Arizona Revised
Statutes Sectio 49-426 or Section 49-480.
4
(gg)Food,beverag ,condiments and accessories purchased by or for a public
educational ntity,pursuant to any of the provisions of Title 15,
Arizona Revi ed Statutes;to the extent such items are to be prepared or
served to ndividuals for consumption on the premises of a public
educational'entity during school hours.For the purposes of this
subsection,"accessories"means paper plates,plastic eating utensils,
CITY OF APACHE JUNCTION TAX CODE
AMENDMENTS ON A USE TAX
ADOPTED BY ORDINANCE NO.1140
PAGE 10 OF 18
napkins,paper cups,drinking straws,paper sacks or her disposable
containers,or other items which facilitate the consyfiption of the food.
(hh)Personal hygiene items purchased by a person eng ed in the business of
and subject to tax under Section 8A-444 of th's code i f the tangible
personal property is furnished without additio al charge to and intended
to be consumed by the person during his occup ncy.
/
(ii)The diversion of gas from a pipeline by a erson engaged in the business
of operating a natural or artificial gas pipeline,for the sole purpose
of fueling compressor equipment to pr ssurize the pipeline,is not a
sale of the gas to the operator of the pipeline.
(jj)Food,beverages,condiments and
nonprofit charitable organizatio
organization under 26 United r\St,at
serves meals to the needy'n
For the purposes of this
plastic eatina utensils._
sacks or other disposabrijc,
the consumption of theM
(kk)Sales of motor vehl
tcessories purchased by or for a
t at has qualified as an exempt
s Ndk Section 501(c)(3)and regularly
on a continuing basis at no cost.
"accessories"means paper plates,
paper cups,drinking straws,paper
ers,or other items which facilitate
at use alternative fuel as defined in Arizona
Revised Statutes Sec-Um/43-1086 on or after May 5,1999.
Section 4.Regulation 8A -Y15.1 of the City Tax Code of the City of Apache
Junction,is amended to re
Reg.8A-115.1 Computer Ordware,software,and date services.
(a)Definitions.
(1)"Comouter Hardware"(also called "computer equipment"or
"peripherals")is the components and accessories which constitute
the phy 'cal computer assembly,including but not limited to:
central processing unit,keyboard,console,monitor,memory unit,
disk s.ive,tape drive or reader,terminal,printer,plotter,
modem,document sorter,optical reader and/or digitizer,network.
(2)"Com.ter Software"(also called "computer program")is tangible
pers'inal property,and includes:
(A)"Operating Program (Software)"(also called "executive
program (software)"),which is the programming system or
CITY OF APACHE JUNCTION TAX CODE
AMENDMENTS ON A USE TAX
ADOPTED BY ORDINANCE NO.1140
PAGE 11 OF 18
(3)
(4)
(5)
technical language upon which or by means of
operating procedures of the computer are
operating program serves as an interface wi
programs and allows the -user to acces
processing capabilities..
"Applied Program (Software)",Mitch
system or technical language (incl
cards,or other medium upon which
is recorded)designed either
specialized use,or upon which
for the solution of a par,
Typically,applied programs
computer to another via sto
programs include:payroll
data,spreadsheqt,wprd,
programs.
"Storage Medium"is an
diskette,diskpack,mag
storage of informati
including the mwo
A "Terminal Arr
any agreement al
through telecomm
A "Computer Servi
agreement")is an
a third -party op
(B)
whi/ the basic
ra6rded.The
user applied
the computer's
s the programming
ing the tape,disk,
ch language or program
for application in a
by means of which a plan
icular problem is based.
an be transferred from one
gc media.Examples of applied
roAssing,general ledger.sales
Jsing,and data management
9sk,compact disk,floppy disk,
cards,or other medium used for
rm readable by a computer,but not
omputer itself.
o called "'on-line'arrangement")is
actess to a remote central processing unit
tions via hardware.
es Agreement"(also called "data services
agreement allowing access to a computer through
rotor.
(b)For the purposes of this Chapter,transfer of title and possession of
the following are/teemed sales of tangible personal property and any
other transfer of itle,possession,or right to use for a consideration
of the following is deemed rental,leasing,or licensing of tangible
personal proper
(1)Computer ardware or storage media.Rental,leasing,or licensing
for use of computer hardware or storage media includes the
lessee'use of such hardware or storage media on the lessor's
premis s.
(2)Computer software which is not custom computer programming.Such
prew itten ("canned")programs may be transferred to a customer in
the /form of punched cards,magnetic tape,or other storage medium,
or 15y listing the program instructions on coding sheets.Transfer
CITY OF APACHE JUNCTION TAX CODE
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ADOPTED BY ORDINANCE NO.1140
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is deemed to have occurred whether title to the
upon which the program is recorded,coded,or
the customer or the program is recorded,cod
storage medium furnished by the customer.Gr
transfer of such prewritten programs include
(A)the entire amount charged to the stomer for the sale,
rental,lease,or license- for use the storage medium or
coding sheets on which or into wh*h the prewritten program
has been recorded,coded,or pun ed.
(B)the entire amount charged fo the temporary transfer or
possession of a prewritten pr ram to be directly used or to
be recorded,coded,or pi.pIched by the customer on the
customer's premises.
(C)license fees,royal
present or future,
use for extended
prewritten progra
(D)the entire amou
("canned")pro
transferor
computer.
(E)any charge
entitles th
prewritten p
been recor
consultati
torage medium
p4Kched passes to
or punched on
'ss income from the
ifeV,or\program design fees:any fee
r foM period of minimum use or of
ods,;Li-elating to the use of a
hared'for transfer of a prewritten
by /Note telecommunications from the
pusiness LU U r uHruuym LIIC umLumer
he purchase of a maintenance contract which
ustomer to receive storage media on which
ogram improvements or error corrections have
ed or to receive telephone or on -site
services,provided that:
(i)i f uch maintenance contract is not optional with the
cuttomer,then the charges for the maintenance
c ntract,including the consultation services,are
/eemed gross income from the transfer of the
Orewritten program.
(ii)/ if such maintenance contract is optional with the
customer but the customer does not have the option to
purchase the consultation services separately from the
storage media containing the improvements or error
corrections,then the charges for the maintenance
contract,including the consultation services,are
deemed gross income from the transfer of the
prewritten program.
CITY OF APACHE JUNCTION TAX CODE
AMENDMENTS ON A USE TAX
ADOPTED BY ORDINANCE NO.1140
PAGE 13 OF 18
(c)
(111)i f such maintenance contract is optional with the
customer and the customer may purchase the
consultation services separately from the storage
media containing the improvemen or error
corrections,then-only the ch ges for such
improvements or error corrections are deemed gross
income from the transfer of a pr written program and
charges for consultation are d med to be charges for
professional services.
Producing the following by means of comput
the activity of job printing for the purp
(1)Statistical reports,graphs,di
photo recordings,or any other
a computer:except as provided
Additional copies of records
"Additional Copies"(
simultaneously with th
printer,whether su
program,by using
using different
means.
(2)
hardware is deemed to be
es of this Chapter.
'grams,microfilm,microfiche,
ormation produced or compiled by
niSubsection (e)below.
rts,manuals,tabulations,etc.
in excess to those produced
on of the original and on the same
are prepared by running the same
rinters,by looping the program,by
produce the same output,or by other
(d)Charges for the communications channel in conjunction with a
terminal arrangem t r data services agreement are deemed gross income
from the activity of providing telecommunications services.
i
(e)The following tra t sactions are deemed direct customer services,provided
that charges fo such services are separately stated and maintained as
provided by Re lation 8A -100.2(e):
(1)"Custom (Comeuter)Prosrammin.",which is any computer software
which s written or prepared for a single customer,including
those services represented by separately stated charges for the
modlIcation of existing prewritten programs.
(A)customer computer programming is deemed a professional
service regardless of the form in which the programming is
transferred.
'(8)custom programming includes such programming performed in
connection with the sale,rental,lease,or license for use
of computer hardware,provided that the charges for such are
separately stated from the charges for the hardware.
CITY OF APACHE JUNCTION TAX CODE
AMENDMENTS ON A USE TAX
ADOPTED BY ORDINANCE NO.1140
PAGE 14 OF 18
(f)
produce copies of the program for sale,ren
license.The subsequent sale,rental,leas
such a program is deemed the sale,rental,
of a prewritten program.
(2)Training services related to computer hVdware or software,
provided further that:
/ 1 r
(A)the provider of such training rvices is deemed the
ultimate consumer of all tangible ersonal property used in
training others or provided o such trainees without
(C)custom computer programming includes a program prepared to
the special order of a customer who will use th program to
lease,or
license of
or license
1
;or
ease,
separately itemized charge for/he materials provided.
(B)training deemed a direct cust mer service does not include:
(1)training mater -Ws,b oks,manuals,etc.furnished to
customers fort-V\9h ge\separate from the charge for
training servifF
(11)training prov 'aes to jickstomers without separate charge
as part of .heiAge,rental,lease,or license of
computer 1.r.,re\ or software,or as part of a
termiliall:rr,g ent or data services agreement.
4 \
(3)The use of computli ' i .h ough the use of a terminal arrangement
or a data servicellgr:-n .but not charges for computer hardware
located at the cps sme'r's place of business (for example,the
terminal,a print-attached to the terminal,a modem used to
communicate with the remote central processing unit over a
telephone line).
(4)Compiling and roducing,as part of a terminal arrangement or
computer ser ices agreement,original copies of statistical
reports,g aphs,diagrams,microfilm,microfiche,photo
recordings,or other information for the same person who supplied
the raw d a used to create such reports.
The purchase
storage med
programming
for the p
use tax
the gro
such.
rental,lease,or license for use of computer hardware,
a,or computer software which is not deemed custom
is deemed the use or storage of tangible personal property
pose of this Chapter,and the amount which may be subject to
all be determined in the same manner as the determination of
s income from the sale,rental,lease,or license for use of
CITY OF APACHE JUNCTION TAX CODE
AMENDMENTS ON A USE TAX
ADOPTED BY ORDINANCE NO.1140
PAGE 15 OF 18
Section 5.Regulation 8A-300.1 of the City Tax Code of the City of Apache
Junction,Arizona is amended to read:
Reg.
(a)
Section 8A-300,a person shall be deemed to be "en
in business -within the City,i f he meets
conditions:
(1)He is engaged in any activity
Taxes as principal or broker.
He has or maintains within the
by a subsidiary,an office,
warehouse or other place of
representative operating wi
such person or i f a corpor
whether such place of busi
located here permanently
subsidiary is authoriz
or this City.
(3)He is solicitin
similar forms o
customers,consum
of salesmen,soli
other similar agen
whether such ord
this City.
(4)He is regular]
tax;provide
to obtain
for their
(5)He is re
imposed
(2)
(b)(Reserved)
subject
City di
distr
busi
a
8A-300.1.Who must apply for a license.
For the purposes of determining whether a license ide required under
claclil in or continuin
ny(of the following
the City's Privilege
ctly,or i f a corporation
ution house,sales house,
ess,or any agent or other
ity under the authority of
ubsidiary.irrespective of
or other representative is
mporyi'ly or whether such person or
ed to do business in this State
ord,ONs,contracts,leases,and other
esWelationships,within the City from
s./or iitelss located within the City,by means
clotors, 'agents,representatives,brokers,and
or by means of catalogs or other advertising.
rs are received or accepted within or without
engaged in any activity subject to the City's use
f,however,that individuals are not normally required
license because they acquire items outside the City
wn or their family's personal use and enjoyment.
uired to report and pay the tax upon Rental Occupancy
y Section 8A-440.
Section 6.5egulation 8A-350.2 of the City Tax Code of the City of Apache
Junction,Arizona,is amended to read:
Reg.8A-350.2.Recordkeeping:expenditures.
CITY OF APACHE JUNCTION TAX CODE
AMENDMENTS ON A USE TAX
ADOPTED BY ORDINANCE NO.1140
PAGE 16 OF 18
The minimum records required for persons having expenditures,costs,purchases
and rental or lease or license expenses subject to,or exempt or excluded
from,tax by this Chapter are:
(a)The total price of all goods acquired for use or storage in the City.
/4
(b)The date of acquisition and the name and business address of the seller
or lessor of all goods acquired for use or storage in th City.
t
(c)Documentation of taxes,freight,and direct cust er service labor
separately charged and paid for each purchase/ rental,lease,or
license.
V(/(
(d)The gross price of each acquisition claimed as exempt from tax,and with
respect to each transaction so claimed,sufficient evidence to satisfy
the Tax Collector that the exemption claim is applicable.
(e)As applicable to each taxpayer.docur*tation sufficient to the Tax
Collector,so that he may ascertain:
/
(1)All construction expelidlps anloall Privilege and Use Taxes
/,0
claimed paid,relating to 6,r -b :11 ers and speculative builders.
(2)Disbursement of colle—e gr uities and related payroll
information required of'e adi nts.
(3)Franchise and licens:e paVents and computations thereto which
relate to:
(A)utility se
(5)telecommunAlatip srerVice.
(4)The validity of Nfiy/claims of proof of exemption,as provided by
Regulation.
(5)A claimed a1tern4tive prior value for reconstruction.
(6)All claimed exgrfiptions to the use tax imposed by Article VI of
this Chapter.
(7)(Reserved),
(8)Payments of tax to the Arizona Department of Transportation and
computatio s therefor,when a motor -vehicle transporter claims
such the xemption.
(9)Payment by tenants subject to the tax upon Rental Occupancy
impose by Section 8A-440.
(f)Any additifral documentation as the Tax Collector,by Regulation,shall
deem neces(sary for any specific class of taxpayer by reason of the
CITY OF APACHE JUNCTION TAX CODE
AMENDMENTS ON A USE TAX
ADOPTED BY ORDINANCE NO.1140
PAGE 17 OF 18
specialized business activity of specific exemptions afforded to that
class of taxpayer.
(g)In all cases,the books and records of the taxpayer shall indicate both
individual transaction amounts and totals for each reporting period for
each category of taxable,exempt,and excluded expenditure,s as defined
by this Chapter.
CITY OF APACHE JUNCTION TAX CODE
AMENDMENTS ON A USE TAX
ADOPTED BY ORDINANCE NO.1140
PAGE 18 OF 18
SECTION VI DECLARING AN EMERGENCY
The immediate operation of the provisions of this Ordinance is necessary for the
immediate preservation of the public peace,health or safety,and that an
emergency is hereby declared to exist since,among the other things the City is
losing revenue every day the ordinance is not in effect;and this Ordinance shall
be in full force and effect from and after its passage,adoption and approvayby
the Mayor and Council of the City of Apache Junction.
PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APAcHS JUNCTION,
ARIZONA,THIS DAY OF d/2001.
SIGNED AND ATTESTED TO THIS
ATTEST:
KATHLEEN CONNELLY
City Clerk
APPROVED AS TO FORM:/
..oam_g/gOA
RICHARD J.STERN /
City Attorney / /
/ /
ORDINANCE NO.1140
PAGE 3 OF 3
DAY OF
/
,2001.
DOUGLAS COLEMAN
Mayor