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HomeMy WebLinkAboutORD1353ORDINANCE NO. 1353 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA,RELATING T O THE PRIVILEGE LICENSE TAX; ADOPTING "THE 2008 AND 2009 AMENDMENTS OF THE TAX CODE O F THE CITY O F APACHE JUNCTION"AND INCLUDING SECTION 8A-310 BY REFERENCE;REPEALING CONFLICTING PROVISIONS; PROVIDING FOR SEVERABILITY; AND DECLARING AN EMERGENCY. WHEREAS, on Mayor and City Council on September 1, 1987 adopted the "Tax Code of the City of Apache Junction, Arizona"; and WHEREAS, the adoption of this tax code recommended by the Municipal Sales Tax Commission and mandated by Arizona Revised Statutes, Title 42 Taxation is applicable to all Arizona cities and towns; and WHEREAS, A.R.S.§ 9-802 permits municipalities to enact the provisions of a code or public record theretofore in existence without setting forth such provisions in full text as long as the adopting ordinance is published in full text and at least three copies of the code or public record are filed in the office of the clerk of the municipality and are made available for public use and inspection; WHEREAS, pursuant to A.R.S. §§ 9-801(1) and 9-802, codes which may be adopted be reference include those relating to tax codes. NOW, THREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA: SECTION I.ADOPTING BY REFERENCE That certain document known as "The 2008 and 2009 Amendments of the Tax Code of the City of Apache Junction" and including Section 8A- 310, three copies of which are on file in the office of the city clerk of the City of Apache Junction, Arizona, which document was made a public record by Resolution No. 09-56 of the City of Apache Junction, Arizona, is hereby referred to, adopted and made a part hereof as if fully set out in this ordinance. ORDINANCE NO. 1353 PAGE 1 OF 3 SECTION II.REPEALING CONFLICTING PROVISIONS All ordinances and parts of ordinances in conflict with the provisions of this ordinance or any part of the codes adopted herein by reference are hereby repealed. SECTION III PROVIDING FOR SEVERABILITY If any section, subsection, sentence, phrase, clause or portion of this ordinance or any part of the codes adopted herein by reference 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 IV DECLARING AN EMERGENCY The immediate operation of the provision of this ordinance is necessary for the immediate preservation o f the public peace, health or safety,and that an emergency is hereby declared to exist; and this ordinance shall be in full force and effect from and after its passage, adoption and approval by the mayor and city council of the City of Apache Junction. PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, THIS 1ST DAY OF DECEMBER , 2009. SIGNED AND ATTESTED TO THIS 1ST DAY OF DECEMBER HN S. INSALACO Mayor ATTEST: KATHLEEN CONNELLY City Clerk ORDINANCE NO. 1353 PAGE 2 OF 3 , 2009. APPROVED AS TO FORM: 4=77,5ie, RICHARD J. STERN City Attorney ORDINANCE NO. 1353 PAGE 3 OF 3 2008-2009 AMENDMENTS TO THE TAX CODE OF THE CITY OF APACHE JUNCTION Section 1.Section 8A-100 of the Tax Code of the City of Apache Junction is amended to read: Sec. 8A-100.General Definitions. For the purposes of this Chapter, the following definitions apply: "Assembler"means a person who unites or combines products, wares, or articles of manufacture so as to produce a change in form or substance of such items without changing or altering component parts. "Broker"means any person engaged or continuing in business who acts for another for a consideration in the conduct of a business activity taxable under this Chapter,and who receives for his principal all or part of the gro'ss income from the taxable activity. "Business"means 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. "Business Day"means any day of the week when the Tax Collector's office is open for the public to conduct the Tax Collector's business. "Casual Activity or Sale"means a transaction of an isolated nature made by a person who neither represents himself to be nor is engaged in a business subject to a tax imposed by this Chapter. However,no sale,rental,license for use,or lease transaction concerning real property nor any activity entered into by a business taxable by this Chapter shall be treated, or be exempt, as casual.This definition shall include sales of used capital assets, provided that the volume and frequency of such sales do not indicate that the seller regularly engages in selling such property. "Combined Taxes"means the sum of all applicable Arizona Transaction Privilege and Use Taxes; all applicable transportation taxes imposed upon gross income by this County as authorized by Article III, Chapter 6, Title 42, Arizona Revised Statutes; and all applicable taxes imposed by this Chapter. "Commercial Property"is any real property,or portion of such property, used for any purpose other than lodging or lodging space, including structures built for lodging but used otherwise, such as model homes, apartments used as offices, etc. Page 1 of 29 "Communications Channel"means an line, wire, cable, microwave, radio signal,light beam,telephone,telegraph,or any other electromagnetic means of moving a message. "Construction Contracting"refers to the activity of a construction contractor. "Construction Contractor"means a person who undertakes to or offers to undertake to,or purports to have the 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 to real property,or to do any part thereof. "Construction contractor"includes subcontractors,specialty contractors,prime contractors,and any person receiving consideration for the general supervision and/or coordination of such a construction project except for remediation contracting. This definition shall govern without regard to whether or not the construction contractor is acting in fulfillment of a contract. "Delivery (of Notice)by the Tax Collector"means "receipt (of notice) by the taxpayer". "Delivery, Installation, or Other Direct Customer Services"means services or labor, excluding repair labor, provided by a taxpayer to or for his customer at the time of transfer of tangible personal property;provided further that the charge for such labor or service is separately billed to the customer and maintained separately in the taxpayer's books and records. "Engaging",when used with reference to engaging or continuing in business, includes the exercise of corporate or franchise powers. "Equivalent Excise Tax"means either: (1) a Privilege or Use Tax levied by another Arizona municipality upon the transaction in question,and paid either to such Arizona municipality directly or to the vendor; or (2)an excise tax levied by a political subdivision of a state other than Arizona upon the transaction in question, and paid either to such jurisdiction directly or to the vendor; or (3) an excise tax levied by a Native American Government organized under the laws of the federal government upon the transaction in question,and paid either to such jurisdiction directly or to the vendor. "Federal Government"means the United States Government,its departments and agencies;but not including national banks or federally chartered or insured banks,savings and loan institutions, or credit unions. Page 2 of 29 "Food"means any items intended for human consumption as defined by rules and regulations adopted by the Department of Revenue, State of Arizona,pursuant to A.R.S:Section 42-5106.Under no circumstances shall "food" include alcoholic beverages or tobacco, or food items purchased for use in conversion to any form of alcohol by distillation, fermentation, brewing, or other process. "Hotel"means any public or private hotel, inn, hostelry, tourist home,house, motel,rooming house,apartment house,trailer,or other lodging place within the City offering lodging, wherein the owner thereof,for compensation,furnishes lodging to any transient, except foster homes, rest homes, sheltered care homes, nursing homes, or primary health care facilities. "Job Printing"means the activity of copying or reproducing an article by any means, process, or method."Job printing" includes engraving of printing plates, embossing,copying, micrographics, and photo reproduction. "Lessee"includes the equivalent person in a rental or licensing agreement for all purposes of this Chapter. "Lessor"includes the equivalent person in a rental or licensing agreement for all purposes of this Chapter. "Licensing (for Use)"means any agreement between the user ("licensee") and the owner or the owner's agent ("licensor")for the use of the licensor's property whereby the licensor receives consideration, where such agreement does not qualify as a "sale" or "lease" or "rental" agreement. "Lodging (Lodging Space)"means any room or apartment in a hotel or any other provider of rooms, trailer spaces, or other residential dwelling spaces; or the furnishings or services and accommodations accompanying the use and possession of said dwelling space, including storage or parking space for the property of said tenant. "Manufactured Buildings"means a manufactured home, mobile home or factory built building, as defined in A.R.S. Section 41-2142. "Manufacturer"means a person engaged or continuing in the business of fabricating,producing,or manufacturing products,wares,or articles for use from other forms of tangible personal property, imparting to such new forms,qualities,properties,and combinations. "Mining and Metallurgical Supplies"means all tangible personal property acquired by persons engaged in activities defined in Section 8A-432 for such use.This definition shall not include: (1)janitorial equipment and supplies. (2) office equipment, office furniture, and office supplies. (3) motor vehicles licensed for use upon the highways of the State. Page 3 of 29 "Modifier"means a person who reworks,changes,or adds to products, wares, or articles of manufacture. "Nonprofit Entity"means any entity organized and operated exclusively for charitable purposes;or operated by the Federal Government, the State, or any political subdivision of the State. "Occupancy (of Real Property)"means any occupancy or use, or any right to occupy or use, real property including any improvements, rights, or interests in such property. "Out -of -City Sale"means the sale of tangible personal property and job printing if all of the following occur: (1)transference of title and possession occur without the City;and (2)the stock from which such personal property was taken was not within the corporate limits of the City; and (3)the order is received at a permanent business location of the seller located outside the City;which location is used for the substantial and regular conduct of such business sales activity.In no event shall the place of business of the buyer be determinative of the situs of the receipt of the order. For the purpose of this definition it does not matter that all other indicia of business occur within the City, including, but not limited to,accounting,invoicing,payments,centralized purchasing, and supply to out -of -City storehouses and out -of -City retail branch outlets from a primary storehouse within the City. "Out -of -State Sale"means the sale of tangible personal property and job printing if all of the following occur: (1) The order is placed from without the State of Arizona; and (2)the property is delivered to the buyer at a location outside the State; and (3)the property is purchased for use outside the State. "Owner -Builder"means an owner or lessor of real property who, by himself or by or through others, constructs or has constructed or reconstructs or has reconstructed any improvement to real property. "Person"means an individual,firm,partnership,joint venture, association,corporation,estate,trust,receiver,syndicate, broker,the Federal Government,this State,or any political subdivision or agency of this State.For the purposes of this Chapter,a person shall be considered a distinct and separate person from any general or limited partnership or joint venture or other association with which such person is affiliated.A subsidiary corporation shall be considered a separate person from its parent corporation for purposes of taxation of transactions with its parent corporation. "Prosthetic"means any of the following tangible personal property if such items are prescribed or recommended by a licensed Page 4 of 29 podiatrist,chiropractor,dentist,physician or surgeon, naturopath,optometrist,osteopathic physician or surgeon, psychologist,hearing aid dispenser,physician assistant,nurse practitioner or veterinarian: (1)any man-made device for support or replacement of a part of the body, or to increase acuity of one of the senses. Such items include:prescription eyeglasses;contact lenses;hearing aids;artificial limbs or teeth;neck, back, arm, leg, or similar braces. (2)insulin,insulin syringes,and glucose test strips sold with or without a prescription. (3) hospital beds, crutches, wheelchairs, similar home health aids, or corrective shoes. (4) drugs or medicine, including oxygen. (5) equipment used to generate,monitor,or provide health support systems,such as respiratory equipment,oxygen concentrator, dialysis machine. (6) durable medical equipment which has a federal health care financing administration common procedure code,is designated reimbursable by Medicare,can withstand repeated use, is primarily and customarily used to serve a medical purpose,is generally not useful to a person in the absence of illness or injury and is appropriate for use in the home. "Qualifying Community Health Center" (1) means an entity that is recognized as nonprofit under Section 501(c)(3) of the United States Internal Revenue Code, that is a community -based, primary care clinic that has a community -based board of directors and that is either: (a) the sole provider of primary care in the community. (b)a nonhospital affiliated clinic that is located in a federally designated medically underserved area in this State. (2)includes clinics that are being constructed as qualifying community health centers. "Qualifying Health Care Organization"means an entity that is recognized as nonprofit under Section 501(c) of the United States Internal Revenue Code and that uses,saves or invests at least eighty percent (80%)of all monies that it receives from all sources each year only for health and medical related educational and charitable services, as documented by annual financial audits prepared by an independent certified public accountant, performed according to generally accepted accounting standards and filed annually with the Arizona Department of Revenue.Monies that are used, saved or invested to lease, purchase or construct a facility for health and medical related education and charitable services are included in the eighty percent (80%) requirement. "Qualifying Hospital"means any of the following: (1)a licensed hospital which is organized and operated exclusively for charitable purposes,no part of the net Page 5 of 29 earnings of which inures to the benefit of any private shareholder or individual. (2) a licensed nursing cafe .institution or a licensed residential care institution or a residential care facility operated in conjunction with a licensed nursing care institution or a licensed kidney dialysis center, which provides medical services,nursing services or health related services and is not used or held for profit.• (3) a hospital, nursing care institution or residential care institution which is operated by the federal government, this State or a political subdivision of this State. (4) a facility that is under construction and that on completion will be a fadility under subdivision (1),(2) or (3) of this paragraph. "Receipt (of Notice) by the Taxpayer"means the earlier of actual receipt or the first attempted delivery by certified United States mail to the taxpayer's address of record with the Tax Collector. "Remediation"means those actions that are reasonable, necessary, cost-effective and technically feasible in the event of the release or threat of release of hazardous substances into the environment such that the waters of the State are or may be affected,such actions as may be necessary to monitor, assess and evaluate such release or threat of release, actions of remediation, removal or disposal of hazardous substances or taking such other actions as may be necessary to prevent, minimize or mitigate damage to the public health or welfare or to the waters of the State which may otherwise result from a release or threat of release of a hazardous substance that will or may affect the waters of the State. Remediation activities include the use of biostimulation with indigenous microbes and bioaugmentation using microbes that are nonpathogenic, nonopportunistic and that are naturally occurring. Remediation activities may include community information and participation costs and providing an alternative drinking water supply. "Rental Equipment"means tangible personal property sold, rented, leased, or licensed to customers to the extent that the item is actually used by the customer for rental,lease,or license to others; provided that: (1)the vendee is regularly engaged in the business of renting,leasing,or licensing such property for a consideration; and (2)the item so claimed as "rental equipment" is not used by the person claiming the exemption for any purpose other than rental,lease,or license for compensation,to an extent greater than fifteen percent (15%)of its actual use. Page 6 of 29 "Rental Supply"means an expendable or nonexpendable repair or replacement part sold to become part of "rental equipment", provided that: (1) the documentation relating to each purchased item so claimed specifically itemizes to the vendor the actual item of "rental equipment" to which the purchased item is intended to be attached as,a repair or replacement part; and -(2)the vendee is regularly engaged in the business of renting,leasing,or licensing such property for a consideration;and (3) the item so claimed as "rental equipment" is not used by the person claiming the, exemption for .any purpose other than rental,lease,or license for compensation,to an extent greater than fifteen percent (15%)of its actual use. "Repairer"means a person who restores or renews products, wares, or articles of manufacture. "Resides within the City"means in cases other than individuals, whose legal addresses are determinative of residence, the engaging, continuing, or conducting of regular business activity within the City. "Restaurant"means any business activity where articles of food, drink, or condiment are customarily prepared or served to patrons for consumption on or off the premises,also including bars, cocktail lounges, the dining rooms of hotels, and all caterers. For the purposes of this Chapter,a "fast food" business, which includes street vendors and mobile vendors selling in public areas or at entertainment or sports or similar events, who prepares or sells food or drink for consumption on or off the premises is considered a "restaurant", and not a "retailer". "Retail Sale (Sale at Retail)"means the sale of tangible personal property, except the sale of tangible person property to a person regularly engaged in the business of selling such property. "Retailer"means any person engaged or continuing in the business of sales of tangible personal property at retail. "Sale"means any transfer of title or possession,or both, exchange, barter, conditional or otherwise, in any manner or by any means whatsoever, including consignment transactions and auctions, of property for a consideration."Sale" includes any transaction whereby the possession of such property is transferred but the seller retains the title as security for the payment of the price. "Sale" also includes the fabrication of tangible personal property for consumers who, in whole or in part, furnish either directly or indirectly the materials used in such fabrication work. Page 7 of 29 "Solar Daylighting"means a device that is specifically designed to capture and redirect the visible portion of the solar beam, while controlling the infrared portion, for use in illuminating interior building spaces in lieu of artificial lighting. "Solar Energy Device"means a system or series of mechanisms designed primarily to provide heating,to provide cooling,to produce electrical power, to produce mechanical power, to provide solar daylighting or to provide any combination of the foregoing by means of collecting and transferring solar generated energy into such uses either by active or passive means,including wind generator systems that produce electricity.Solar energy systems may also have the capability of storing solar energy for future use.Passive systems shall clearly be designed as a solar energy device, such as a trombe wall, and not merely as a part of a normal structure, such as a window. "Speculative Builder"means either: (1)an owner -builder who sells or contracts to sell,at anytime,improved real property (as provided in Section 8A-416) consisting of: A)custom, model, or inventory homes, regardless of the stage of completion of such homes; or B)improved residential or commercial lots without a structure; or (2)an owner -builder who sells or contracts to sell improved real property, other than improved real property specified in subsection (1) above: A)prior to completion; or B)before the expiration of twenty-four (24) months after the improvements of the real property sold are substantially complete. "Substantially Complete"means the construction contracting or reconstruction contracting: (1) has passed final inspection or its equivalent; or (2)certificate of occupancy or its equivalent has been issued; or (3)is ready for immediate occupancy or use. "Supplier"means any person who rents, leases, licenses, or makes sales of tangible personal property within the City,either directly to the consumer or customer or to wholesalers, jobbers, fabricators, manufacturers, modifiers,assemblers,repairers,or those engaged in the business of providing services which involve the use,sale,rental,lease,or license of tangible personal property. "Tax Collector"means the Revenue Officer/City Clerk or their designee or agent for all purposes under this Chapter. "Taxpayer"means any person liable for any tax under this Chapter. Page 8 of 29 "Taxpayer Problem Resolution Officer"means the individual designated by the City to perform the duties identified in Sections 8A-515 and 8A-516.In cities with a population of 50,000 or more, the Taxpayer Problem Resolution Officer shall be an employee of the City.In cities with a population of less than 50,000,the Taxpayer Problem Resolution Officer need not be an employee of the City.Regardless of whether the Taxpayer Problem Resolution Officer is or is not an employee of the City, the Taxpayer Problem Resolution Officer shall have substantive knowledge of taxation. The identity of and telephone number for the Taxpayer Problem Resolution Officer can be obtained from the Tax Collector. "Telecommunication Service"means any service or activity connected with the transmission or relay of sound,visual image,data, information, images, or material over a communications channel or any combination of communications channels. "Transient" means any person who either at the person's own expense or at the expense of another obtains lodging space or the use of lodging space on a daily or weekly basis, or on any other basis for less than thirty (30) consecutive days. "Utility Service"means the producing, providing, or furnishing of electricity,electric lights,current,power,gas (natural or artificial), or water to consumers or ratepayers. Section 2.Section 8A-415 of the Tax Code of the City of Apache Junction is amended to read: Section 8A-415.Construction contracting: Construction contractors. (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 upon every construction contractor engaging or continuing in the business activity of construction contracting within the City. (1) However, gross income from construction contracting shall not include charges related to groundwater measuring devices required by A.R.S. Section 45-604. (2)(Reserved) (3) Gross income from construction contracting shall not include gross income from the sale of manufactured buildings taxable under Section 8A-427. (4) For taxable periods beginning from and after July 1, 2008, the portion of gross proceeds of sales or gross income attributable to the actual direct costs of providing architectural O r engineering services that are incorporated in a contract is not subject to tax under this Section.For the purpose of this subsection, "direct costs" means the portion of the actual costs that are directly expended in providing architectural or engineering services. Page 9 of 29 (b)Deductions and exemptions. (1) Gross income derived from acting as a "subcontractor" shall be exempt from the tax imposed by this Section. (2) All construction contracttng gross income subject to the tax and not deductible herein shall be allowed a deduction of thirty-five percent (35%). (3) The gross proceeds of sales or gross income attributable to the purchase of machinery, equipment or other tangible personal property that is exempt from or deductible from privilege or use tax under: (A)Section 8A-465, subsections (g) and (p) (B)(Reserved) shall be exempt or deductible, respectively, from the tax imposed by this Section. (4) The gross proceeds of sales or gross income that is derived from a contract entered into for the installation, assembly,repair or maintenance of income -producing capital equipment, as defined in Section 8A-110, that is deducted from the retail classification pursuant to Section 8A -465(g)that does not become a permanent attachment to a building,highway,road,railroad, excavation or manufactured building or other structure, project, development or improvement shall be exempt from the tax imposed by this Section. If the ownership of the realty is separate from the ownership of the income- producing capital equipment,the determination as to permanent attachment shall be made as if the ownership was the same. The deduction provided in this paragraph does not include gross proceeds of sales or gross income from that portion of any contracting activity which consists of the development of, or modification to, real property in order to facilitate the installation,assembly,repair, maintenance or removal of the income -producing capital equipment.For purposes of this paragraph,"permanent attachment" means at least one of the following: (A)to be incorporated into real property. (B)to become so affixed to real property that it becomes part of the real property. (C)to be so attached to real property that removal would cause substantial damage to the real property from which it is removed. (5) The gross proceeds of sales or gross income received from a contract for the construction of an environmentally controlled facility for the raising of poultry for the production of eggs and the sorting,or cooling and packaging of eggs shall be exempt from the tax imposed under this Section. (6) The gross proceeds of sales or gross income that is derived from the installation,assembly,repair or maintenance of cleanrooms that are deducted from the tax base of the retail classification pursuant to Section 8A- 465, subsection (g) shall be exempt from the tax imposed under this Section. Page 10 of 29 (7) The gross proceeds of sales or gross income that is derived from a contract entered into with a person who is engaged in the commercial production of livestock, livestock products or agricultural,horticultural, viticultural or floricultural crops or products in this State for the construction,alteration,repair, improvement, movement, wrecking or demolition or addition to or subtraction from any building,highway,road, excavation,manufactured building or other structure, project,development or iMpx.ovement used directly and primarily to prevent,monitor,control or reduce air, water or land pollution shall be exempt from the tax imposed under this Section. (8) The gross proceeds of sales or gross income received from a post construction contract to perform post -construction treatment of real property for termite and general pest control,including wood destroying organisms,shall be exempt from tax imposed under this Section. (9) Through December 31, 2009, the gross proceeds of sales or gross income received from a contract for constructing any lake facility development in a commercial enhancement reuse district that is designated pursuant to A.R.S. § 9- 499.08 if the contractor maintains the following records in a form satisfactory to the Arizona Department of Revenue and to the City: (A) The certificate of qualification of the lake facility development issued by the City pursuant to A.R.S. § 9- 499.08, subsection D. (B) All state and local transaction privilege tax returns for the period of time during which the contractor received gross proceeds of sales or gross income from a contract to construct a lake facility development in a designated commercial enhancement reuse district, showing the amount exempted from state and local taxation. (C) Any other information considered to be necessary. (10)Any amount attributable to development fees that are incurred in relation to the construction, development or improvement of real property and paid by the taxpayer as defined in the Model City Tax Code or by a contractor providing services to the taxpayer.For the purposes of this paragraph: (A) The attributable amount shall not exceed the value of the development fees actually imposed. (B) The attributable amount is equal to the total amount of development fees paid by the taxpayer or by a contractor providing services to the taxpayer and the total development fees credited in exchange for the construction of, contribution to or dedication of real property for providing public infrastructure, public safety or other public services necessary to the development.The real property must be the subject of the development fees. Page 11 of 29 (C)"Development fees"means fees imposed to offset capital costs of providing public infrastructure, public safety or other public services to a development and authorized pursuant to Section 9- 463.05, Section 11-1102, or Title 48 regardless of the jurisdiction to which the fees are paid. (11)For taxable periods beginning from and after July 1, 2008 AND ending before January 1, 2011, the gross .proceeds of sales or gross income derived from a contract to provide and install a solar energy device.The contractor shall register with the Department of Revenue as a .solar energy contractor.By registering, the contractor acknowledges that it will make its books and records relating to sales of solar energy devices available to the Department of Revenue and the City, as applicable, for examination. (c)Subcontractor means a construction contractor performing work for either: (1)a construction contractor who has provided the subcontractor with a written declaration that he is liable for the tax for the project and has provided the subcontractor his City Privilege License number. (2)an owner -builder who has provided the subcontractor with a written declaration that: (A)the owner -builder is improving the property for sale; and (B)the owner -builder is liable for the tax for such construction contracting activity;and (C)the owner -builder has provided the contractor his City Privilege License number. (3) A person selling new manufactured buildings who has provided the subcontractor with a written declaration that he is liable for the tax for the site preparation and set-up; and provided the subcontractor his City Privilege License number. Subcontractor also includes a construction contractor performing work for another subcontractor as defined above. Section 3.Section 8A-416 of the Tax Code of the City of Apache Junction is amended to read: Sec. 8A-416.Construction contracting:speculative builders. (a) The tax shall be equal to two and two -tenths percent (2.2%) of the gross income from the business activity upon every person engaging or continuing in business as a speculative builder within the City. (1) The gross income of a speculative builder considered taxable shall include the total selling price from the sale of improved real property at the time of closing of escrow or transfer of title. (2)"Improved Real Property"means any real property: Page 12 of 29 (A)upon which a structure has been constructed; or (B) where improvements have been made to land containing no structure (such as paving or landscaping); or (C) which has been reconstructed as provided by Regulation; or (D) where water, power, and streets have been constructed to the property line.. (3)"Sale of Improved Real Property"includes any form of transaction,whether characterized as a lease or otherwise, which in substance is a transfer of title of, or equitable ownership in,improved real property and includes any lease of the property for a term of thirty (30)years or more (with -.all options for renewal being included as a part of the term).In the case of multiple unit projects,"sale" refers to the sale of the entire project or to the sale of any individual parcel or unit. (4)"Partially Improved Residential Real Property,"as used in this Section, means any improved real property, as defined in subsection (a)(2)above, being developed for sale to individual homeowners,where the construction of the residence upon such property is not substantially complete at the time of the sale. (b)Exclusions. (1)In cases involving reconstruction contracting,the speculative builder may exclude from gross income the prior value allowed for reconstruction contracting in determining his taxable gross income,as provided by Regulation. (2) Neither the cost nor the fair market value of the land which constitutes part of the improved real property sold may be excluded or deducted from gross income subject to the tax imposed by this Section. (3)(Reserved) (4) A speculative builder may exclude gross income from the sale of partially improved residential real property as defined in (a)(4)above to another speculative builder only if all of the following conditions are satisfied: (A) The speculative builder purchasing the partially improved residential real property has a valid City privilege license for construction contracting as a speculative builder;and (B)At the time of the transaction,the purchaser provides the seller with a properly completed written declaration that the purchaser assumes liability for and will pay all privilege taxes which would otherwise be due the City at the time of sale of the partially improved residential real property;and (C) The seller also: (i)maintains proper records of such transactions in a manner similar to the requirements provided in this chapter relating to sales for resale; and Page 13 of 29 (ii)retains a copy of the written declaration provided by the buyer for the transaction; and (iii)is properly licensed with the City as a speculative builder and provides the City with the written declaration attached to the City privilege, tax return where he claims the exclusion. (5)For taxable periods beginning from and after July 1, 2008, the portion of gross proceeds of sales or gross income attributable to the actual direct costs of providing architectural or engineering services that are incorporated in a contract is not subject to tax under this section. For the purposes of this subsection, "direct costs" means the portion of the actual costs that are directly expended in providing architectural or engineering services. (c) Tax liability for speculative builders occurs at close of escrow or transfer of title, whichever occurs earlier, and is subject to the following provisions, relating to exemptions, deductions and tax credits: (1)Exemptions. (A)The gross proceeds of sales or gross income attributable to the purchase of machinery, equipment or other tangible personal property that is exempt from or deductible from privilege or use tax under: (i)Section 8A-465, subsections (g) and (p) (ii) (Reserved) shall be exempt or deductible, respectively, from the tax imposed by this Section. (B)The gross proceeds of sales or gross income received from a contract for the construction of an environmentally controlled facility for the raising of poultry for the production of eggs and the sorting, or cooling and packaging of eggs shall be exempt from the tax imposed under this Section. (C) The gross proceeds of sales or gross income that is derived from the installation,assembly,repair or maintenance of cleanrooms that are deducted from the tax base of the retail classification pursuant to Section 8A-465,subsection (g)shall be exempt from the tax imposed under this section. (D) The gross proceeds of sales or gross income that is derived from a contract entered into with a person who is engaged in the commercial production of livestock, livestock products or agricultural,horticultural, viticultural or floricultural crops or products in this state for the construction, alteration, repair, improvement,movement,wrecking or demolition or addition to or subtraction from any building, highway, road,excavation,manufactured building or other structure,project,development or improvement used Page 14 of 29 directly and primarily to prevent, monitor, control or reduce air, water or land pollution shall be exempt from the tax imposed under this Section. (E) Any amount attributable to development fees that are incurred in relation to the construction, development or improvement of real property and paid by the taxpayer as defined in the Model City Tax Code or by a contractor providing services to the taxpayer shall be exempt from the tax imposed under this Section.For the purposes of this paragraph: (i)The attributable amount shall not exceed the value of the development fees actually imposed. (ii)The attributable amount is equal to the total amount of development fees paid by the taxpayer or by a contractor providing services to the taxpayer and the total development fees credited in exchange for the construction of,contribution to or dedication of real property for providing public infrastructure, public safety or other public services necessary to the development. The real property must be the subject of the development fees. (iii)"Development fees"means fees imposed to offset capital costs of providing public infrastructure, public safety or other public services to a development and authorized pursuant to Section 9-463.05, Section 11-1102 or Title 48 regardless of the jurisdiction to which the fees are paid. (2)Deductions. (A) All amounts subject to the tax shall be allowed a deduction in the amount of thirty-five percent (35%). (B) The gross proceeds of sales or gross income that is derived from a contract entered into for the installation,assembly,repair or maintenance of income -producing capital equipment,as defined in Section 8A-110,that is deducted from the retail classification pursuant to Section 8A -465(g),that does not become a permanent attachment to a building, highway,road,railroad,excavation or manufactured building or other structure, project, development or improvement shall be exempt from the tax imposed by this Section.If the ownership of the realty is separate from the ownership of the income -producing capital equipment, the determination as to permanent attachment shall be made as if the ownership was the same. The deduction provided in this paragraph does not include gross proceeds of sales or gross income from that portion of any contracting activity which consists of the development of,or modification to, real property in order to facilitate the installation, Page 15 of 29 assembly,repair,maintenance or removal of the income -producing capital equipment.For purposes of this paragraph, "permanent attachment" means at least one of the following: (i)to be incorporated into real property. (ii)to become so affixed to real property that it becomes part of the real property. (iii)to be so attached to real property that removal would cause substantial damage to the real property from which it is removed. (C)For taxable periods beginning from and after July 1, 2008 and ending before January 1, 2011, the gross proceeds of sales or gross income derived from a contract to provide and install a solar energy device. The contractor shall register with the Department of Revenue as a solar energy contractor.By registering, the contractor acknowledges that it will make its books and records relating to sales of solar energy devices available to the Department of Revenue and the City, as applicable, for examination. (3)Tax credits. The following tax credits are available to owner -builders or speculative builders, not to exceed the tax liability against which such credits apply,provided such credits are documented to the satisfaction of the tax collector: (A) A tax credit equal to the amount of city privilege or use tax, or the equivalent excise tax, paid directly to a taxing jurisdiction or as a separately itemized charge paid directly to the vendor with respect to the tangible personal property incorporated into the said structure or improvement to real property undertaken by the owner -builder or speculative builder. (B) A tax credit equal to the amount of privilege taxes paid to this City,or charged separately to the speculative builder, by a construction contractor, on the gross income derived by said person from the construction of any improvement to the real property. (C) No credits provided herein may be claimed until such time that the gross income against which said credits apply is reported. Section 4.Section 8A-417 of the Tax Code of the City of Apache Junction is amended to read: Section 8A-417.Construction contracting:owner -builders who are not speculative builders. (a) At the expiration of twenty-four (24) months after improvement to the property is substantially complete, the tax liability for an owner -builder who is not a speculative builder shall be at an amount equal to two and two -tenths percent (2.2%) of: Page 16 of 29 (1)the gross income from the activity of construction contracting upon the real property in question which was realized by those construction contractors to whom the owner -builder provided written declaration that they were not responsible for the taxes as prescribed in Subsection 8A -415(c)(2); and (2)the purchase of tangible personal property for incorporation into any improvement to real property, computed on the sales price.. (b)For taxable periods beginning .from and after July 1, 2008, the portion of gross proceeds of sales or gross income attributable to the actual direct costs .of.. providing architectural or engineering services that are incorporated in a contract is not subject to tax under this Section.For the purposes of this subsection,"direct costs" means the portion of the actual costs that are directly expended in providing architectural or engineering services. (c) The tax liability of this Section is subject to the following provisions, relating to exemptions, deductions and tax credits: (1)Exemptions. (A) The gross proceeds of sales or gross income attributable to the purchase of machinery, equipment or other tangible personal property that is exempt from or deductible from privilege or use tax under: (i)Section 8A-465, subsections (g) and (p) (ii)(Reserved) shall be exempt or deductible, respectively, from the tax imposed by this Section. (B) The gross proceeds of sales or gross income received from a contract for the construction of an environmentally controlled facility for the raising of poultry for the production of eggs and the sorting, or cooling and packaging of eggs shall be exempt from the tax imposed under this Section. (C) The gross proceeds of sales or gross income that is derived from the installation,assembly,repair or maintenance of cleanrooms that are deducted from the tax base of the retail classification pursuant to Section 8A-465,subsection (g)shall be exempt from the tax imposed under this Section. (D) The gross proceeds of sales or gross income that is derived from a contract entered into with a person who is engaged in the commercial production of livestock, livestock products or agricultural,horticultural, viticultural or floricultural crops or products in this state for the construction, alteration, repair, improvement,movement,wrecking or demolition or addition to or subtraction from any building, highway, road,excavation,manufactured building or other structure,project,development or improvement used directly and primarily to prevent, monitor, control or Page 17 of 29 reduce air, water or land pollution shall be exempt from the tax imposed under this Section. (E) Any amount attributable to development fees that are incurred in relation to the construction, development or improvement of real property and paid by the taxpayer as defined in the Model City Tax Code or by a contractor providing services to the taxpayer shall be exempt from the tax imposed under this Section.For purposes of this paragraph: (i)The attributable amount shall not exceed the value of the development fees actually imposed. (ii)The attributable amount is equal to the total amount of development fees paid by the taxpayer or by a contractor providing services to the taxpayer and the total development fees credited in exchange for the construction of, contribution to or dedication of real property for providing public infrastructure, public safety or other public services necessary to the development.The real property must be the subject of the development fees. (iii)"Development fees" means fees imposed to offset capital costs of providing public infrastructure, public safety or other public services to a development and authorized pursuant to Section 9-463.05, Section 11-1102 or Title 48 regardless of the jurisdiction to which the fees are paid. (2)Deductions. (A) All amounts subject to the tax shall be allowed a deduction in the amount of thirty-five percent (35%). (B) The gross proceeds of sales or gross income that is derived from a contract entered into for the installation,assembly,repair or maintenance of income -producing capital equipment,as defined in Section 8A-110,that is deducted from the retail classification pursuant to Section 8A -465(g),that does not become a permanent attachment to a building, highway,road,railroad,excavation or manufactured building or other structure, project, development or improvement shall be exempt from the tax imposed by this Section.If the ownership of the realty is separate from the ownership of the income -producing capital equipment, the determination as to permanent attachment shall be made as if the ownership was the same.The deduction provided in this paragraph does not include gross proceeds of sales or gross income from that portion of any contracting activity which consists of the development of,or modification to, real property in order to facilitate the installation, assembly,repair,maintenance or removal of the income -producing capital equipment.For purposes of Page 18 of 29 this paragraph, "permanent attachment" means at least one of the following: (i)to be incorporated into real property. (ii)to become so affixed to real property that it becomes part •of the real property. (iii)to be so attached to real property that removal would, cause substantial damage to the real property from which it is removed. (C)For taxable periods beginning from and after July 1, 2008 and ending before January 1, 2011, the gross proceeds of sales or gross income derived from a contract to provide and install a solar energy device. The contractor shall register with the Department of Revenue as a solar energy.contractor.By registering, the contractor acknowledges that it will make its books and records relating to sales of solar energy devices available to the Department of Revenue and the City, as applicable, for examination. (3)Tax credits. The following tax credits are available to owner -builders and speculative builders, not to exceed the tax liability against which sudh -credits apply,provided such credits are documented to thesatisfaction of the tax collector: (A) A tax credit equal to the amount of city privilege or use tax, or the equivalent excise tax, paid directly to a taxing jurisdiction or as a separately itemized charge paid directly to the vendor with respect to the tangible personal property incorporated into the said structure or improvement to real property undertaken by the owner -builder or speculative builder. (B) A tax credit equal to the amount of privilege taxes paid to this City,or charged separately to the speculative builder, by a construction contractor, on the gross income derived by said person from the construction of any improvement to the real property. (C) No credits provided herein may be claimed until such time that the gross income against which said credits apply is reported. (D) The limitation period for the assessment of taxes imposed by this Section is measured based upon when such liability is reportable, that is, in the reporting period that encompasses the twenty-fifth (25th) month after said unit or project was substantially complete.Interest and penalties, as provided in Section 8A-540, will be based on reportable date. (E)(Reserved) Section 5.Section 8A-450 of the Tax Code of the City of Apache Junction is amended to read: Section 8A-450.Rental, leasing, and licensing for use of tangible personal property. Page 19 of 29 (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 leasing,licensing for use,or renting tangible personal property for a consideration,including that which is semi -permanently or permanently installed within the City as provided by Regulation. (b)Special provisions relating to long-term motor vehicle leases. A lease transaction involving a motor vehicle for a minimum period of twenty-four (24) months shall be considered to have occurred at the location of the motor vehicle dealership, rather than the location of the place of business of the lessor,even if the lessor's interest in the lease and its proceeds are sold,transferred,or otherwise assigned to a lease financing institution; provided further that the city or town where such motor vehicle dealership is located levies a Privilege Tax or an equivalent excise tax upon the transaction. (c) Gross income derived from the following transactions shall be exempt from Privilege Taxes imposed by this Section: (1)rental, leasing, or licensing for use of tangible personal property to persons engaged or continuing in the business of leasing, licensing for use, or rental of such property. (2)rental, leasing, or licensing for use of tangible personal property that is semi -permanently or permanently installed within another city or town that levies an equivalent excise tax on the transaction. (3)rental,leasing, or licensing for use of film, tape, or slides to a theater or other person taxed under Section 8A-410, or to a radio station, television station, or subscription television system. (4)rental, leasing, or licensing for use of the following: (A) prosthetics. (B)income -producing capital equipment. (C) mining and metallurgical supplies. These exemptions include the rental, leasing, or licensing for use of tangible personal property which,if it had been purchased instead of leased, rented, or licensed by the lessee or licensee, would qualify as income -producing capital equipment or mining and metallurgical supplies. (5)rental, leasing, or licensing for use of tangible personal property to a qualifying hospital,qualifying community health center or a qualifying health care organization, except when the property so rented, leased, or licensed is for use in activities resulting in gross income from unrelated business income as that term is defined in 26 U.S.C.Section 512 or rental,leasing,or licensing for use of tangible personal property in this State by a nonprofit charitable organization that has qualified under Section 501(c) (3)of the United States Internal Revenue Code and that engages in and uses such property Page 20 of 29 exclusively for training, job placement or rehabilitation programs or testing for mentally or physically handicapped persons. (6)separately billed charges for delivery,installation, repair, and/or maintenance as provided by Regulation. (7) charges for joint pole usage by a person engaged in the business of providing or furnishing utility or telecommunication services to another person engaged in the business of providing or furnishing utility or telecommunication services. (8)(Reserved) (9)rental,leasing,or licensing of aircraft that would qualify as aircraft acquired for use outside the State, as prescribed by Regulation,if such rental,leasing,or licensing had been a sale. (10)rental,leasing and licensing for use of an alternative fuel vehicle if such vehicle was manufactured as a diesel fuel vehicle and converted to operate on alternative fuel and equipment that is installed in a conventional diesel fuel motor vehicle to convert the vehicle to operate on an alternative fuel, as defined in A.R.S. Section 1-215. (11)rental,leasing,and licensing for use of solar energy devices, for taxable periods beginning from and after July 1, 2008.The lessor shall register with the Department of Revenue as a solar energy retailer.By registering, the lessor acknowledges that it will make its books and records relating to solar energy devices available to the Department of Revenue and City,as applicable,for examination. Section 6.Section 8A-465 of the Tax Code of the City of Apache Junction is amended to read: Section 8A-465.Retail sales: exemptions. Income derived from the following sources is exempt from the tax imposed by Section 8A-460: (a)sales of tangible personal property to a person regularly engaged in the business of selling such property. (b) out -of -City sales or out -of -State sales. (c) charges for delivery, installation, or other direct customer services as prescribed by Regulation. (d)charges for repair services as prescribed by Regulation, when separately charged and separately maintained in the books and records of the taxpayer. (e)sales of warranty, maintenance,and service contracts,when separately charged and separately maintained in the books and records of the taxpayer. Page 21 of 29 (f)sales of prosthetics. (g)sales of income -producing capital equipment. (h)sales of rental equipment and rental supplies. (i)sales of mining and metallurgical supplies. (j)sales of motor vehicle fuel and use fuel which are subject to a tax imposed under the provisions of Article I or II, Chapter 16, Title 28, Arizona Revised Statutes; or sales of use fuel to a holder of a valid single trip use fuel tax permit issued under A.R.S.Section 28-5739,or sales of natural gas or liquefied petroleum gas used to propel a motor vehicle. (k)sales of tangible personal property to a construction contractor who holds a valid Privilege Tax License for engaging or continuing in the business of construction contracting where the tangible personal property sold is incorporated into any structure or improvement to real property as part of construction contracting activity. (1)sales of motor vehicles to nonresidents of this State for use outside this State if the vendor ships or delivers the motor vehicle to a destination outside this State. (m)sales of tangible personal property which directly enters into and becomes an ingredient or component part of a product sold in the regular course of the business of job printing, manufacturing,or publication of newspapers,magazines,or other periodicals.Tangible personal property which is consumed or used up in a manufacturing,job printing, publishing,or production process is not an ingredient nor component part of a product. (n)sales made directly to the Federal government to the extent of: (1)one hundred percent (100%)of the gross income derived from retail sales made by a manufacturer,modifier, assembler, or repairer. (2)fifty percent (50%)of the gross income 'derived from retail sales made by any other person. (o)sales to hotels, bars, restaurants, dining cars,lunchrooms, boarding houses, or similar establishments of articles consumed as food,drink,or condiment,whether simple,mixed,or compounded,where such articles are customarily prepared or served to patrons for consumption on or off the premises, where the purchaser is properly licensed and paying a tax under Section 8A-455 or the equivalent excise tax upon such income. (p)sales of tangible personal property to a qualifying hospital, qualifying community health center or a qualifying health care organization,except when the property sold is for use in Page 22 of 29 activities resulting in gross income from unrelated business income as that term is defined in 26 U.S.C.Section 512 or sales of tangible personal property purchased in this State by a nonprofit charitable organization that has qualified under Section 501(c)(3) of the United States Internal Revenue Code and that engages in and uses such property exclusively for training, job placement or rehabilitation programs or testing for mentally or physically handicapped persons. (q)food purchased with food stamps provided through the food stamp program established by the Food Stamp Act of 1977 (P.L. 95-113; 91 Stat. 958.7 U.S.C. Section 2011 et seq.)or purchased with food instruments issued under Section 17 of the Child Nutrition Act (P.L. 95-627; 92 Stat. 3603; and P.L. 99-669; Section 4302; 42 United States Code Section 1786) but only to the extent that food stamps or food instruments were actually used to purchase such food. (r)(Reserved) (1)(Reserved) (2)(Reserved) (3)(Reserved) (4)(Reserved) (s)sales of groundwater measuring devices required by A.R.S. Section 45-604. (t)(Reserved) (u)sales of aircraft acquired for use outside the State,as prescribed by regulation. (v)sales of food products by producers as provided for by A.R.S. Sections 3-561, 3-562 and 3-563. (w)(Reserved) (x)(Reserved) (y)(Reserved) (z)(Reserved) (aa)the sale of tangible personal property used in remediation contracting as defined in Section 8A-100 and Regulation 8A-100.5. (bb)sales of materials that are purchased by or for publicly funded libraries including school district libraries, charter school libraries,community college libraries,state university libraries or federal, state, county or municipal libraries for use by the public as follows: (1) printed or photographic materials. Page 23 of 29 (2) electronic or digital media materials. (cc)sales of food, beverages, condiments and accessories used for serving food and beverages to a commercial airline, as defined in A.R.S. § 42-5061(A)(49), that serves the food and beverages to its passengers, without additional charge, for consumption in flight.For the purposes of this subsection, "accessories" means paper plates,plastic eating utensils,napkins,paper cups,drinking straws,paper sacks or other disposable containers, or other items which facilitate the consumption of the food. (dd)in computing the tax base in the case of the sale or transfer of wireless telecommunication equipment as an inducement to a customer to enter into or continue a contract for telecommunication services that are taxable under Section 8A-470, gross proceeds of sales or gross income does not include any sales commissions or other compensation received by the retailer as a result of the customer entering into or continuing a contract for the telecommunications services. (ee)for the purposes of this Section,a sale of wireless telecommunication equipment to a person who holds the equipment for sale or transfer to a customer as an inducement to enter into or continue a contract for telecommunication services that are taxable under Section 8A-470 is considered to be a sale for resale in the regular course of business. (ff)sales of alternative fuel as defined in A.R.S. § 1-215, to a used oil fuel burner who has received a Department of Environmental Quality permit to burn used oil or used oil fuel under A.R.S. § 49-426 or § 49-480. (gg)sales of food,beverages,condiments and accessories to a public educational entity,pursuant to any of the provisions of Title 15, Arizona Revised Statutes; to the extent such items are to be prepared or served to individuals 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,napkins,paper cups,drinking straws,paper sacks or other disposable containers, or other items which facilitate the consumption of the food. (hh)sales of personal hygiene items to a person engaged in the business of and subject to tax under Section 8A-444 of this code if the tangible personal property is furnished without additional charge to and intended to be consumed by the person during his occupancy. (ii)for the purposes of this Section, the diversion of gas from a pipeline by a person engaged in the business of operating a Page 24 of 29 natural or artificial gas pipeline,for the sole purpose of fueling compressor equipment to pressurize the pipeline, is not a sale of the gas to the operator of the pipeline. (jj)sales of food,beverages,condiments and accessories to a nonprofit charitable organization that has qualified as an exempt organization under 26 U.S.0 Section 501(c)(3)and regularly serves meals to the needy and indigent on a continuing basis at no cost.For the purposes of this subsection,"accessories" means paper plates, plastic eating utensils, napkins, paper cups, drinking straws, paper sacks or other disposable containers, or other items which facilitate the consumption of the food. (kk) sales of motor vehicles that use alternative fuel as defined if such vehicle was manufactured as a diesel fuel vehicle and converted to operate on alternative fuel and sales of equipment that is installed in a conventional diesel fuel motor vehicle to convert the vehicle to operate on an alternative fuel, as defined in A.R.S. Section 1-215. (11) Sales of solar energy devices, for taxable periods beginning from and after July 1, 2008.The retailer shall register with the Department of Revenue as a solar energy retailer.By registering, the retailer acknowledges that it will make its books and records relating to sales of solar energy devices available to the Department of Revenue and City,as applicable, for examination. Section 7.Section 8A-570 of the Tax Code of the City of Apache Junction is amended to read: Section 8A-570.Administrative review; petition for hearing or for Redetermination; finality of order. For the purposes of this section, "Municipal Tax Hearing Office" means the administrative offices of the Municipal Tax Hearing Officer. (a)Informal Conference.A taxpayer shall have the right to discuss any proposed assessment with the auditor prior to the issuance of any assessment, but any such informal conference is not required for the taxpayer to file for administrative review. (b)Administrative Review. (1)Filing a Petition.Other than in the case of a jeopardy assessment, a taxpayer may contest the applicability or amount of any tax, penalty, or interest imposed upon or paid by him pursuant to this Chapter by filing a petition for a hearing or for redetermination with the Tax Collector as set forth below: Page 25 of 29 (A)within forty-five (45)days of receipt by the . taxpayer of notice of a determination by the Tax Collector that a tax, penalty, or interest amount is due, or that a request for refund or credit has been denied; or (B)by voluntary payment of any contested amount when accompanied by a timely filed return and a petition requesting a refund of the protested portion of said payment; or (C)by petition accompanying a timely filed return contesting an amount reported but not paid; or (D)by petition requesting review of denial of waiver of penalty as provided in subsection 3.16-540(g). (2)Extension to file a petition.In all cases, the taxpayer may request an extension from the Tax Collector.Such request must be in writing,state the reasons for the requested delay and must be filed with the Tax Collector within the period allowed above for originally filing a petition.The Tax Collector shall allow a forty-five (45) day extension to file a petition when such written request has been properly and timely made by the taxpayer.The Tax Collector may grant an additional extension and may determine the corresponding time of any such extension at his sole discretion. (3)Requirements for petition. (A) The petition shall be in writing and shall set forth the reasons why any correction, abatement, or refund should be granted,and the amount of reduction or refund requested.The petition may be amended at any time prior to the time the taxpayer rests his case at the hearing or such time as the Hearing Officer allows for submitting of amendments in cases of redetermination without hearings.The Hearing Officer may require that amendments be in writing, and in that case, he shall provide a reasonable period of time to file the amendment.The Hearing Officer shall provide a reasonable period of time for the Tax Collector to review and respond to the petition and to any written amendments. (B) The taxpayer, as part of the petition, may request a hearing which shall be granted by the Hearing Officer. If no request for hearing is made the petition shall be considered to be submitted for decision by the Hearing Officer on the matters contained in the petition and in any reply made by the Tax Collector. (C) The provisions of this Section are exclusive, and no petition seeking any correction, abatement, or refund shall be considered unless the petition is timely and properly filed under this Section. (4)Transmittal to Hearing Officer.The City shall designate a Hearing Officer, who may be other than an employee of the City.The Tax Collector, if designated to receive petitions, shall forward any petition to the Municipal Tax Page 26 of 29 (6) (7) (8) Hearing Office (MTHO) within twenty (20) days after receipt, accompanied by documentation as to timeliness. In cases where the Hearing Officer determines that the petition is not timely or not in proper form, he shall notify both the taxpayer and the Tax Collector; and in cases of petitions not in proper form only, the Hearing Officer shall provide the taxpayer with an extension up to forty-five (45) days to correct the petition. (5)Hearings shall be conducted by a Hearing Officer and shall be continuous until the Hearing Officer closes the record. The taxpayer may be heard in person or by his authorized representative at such hearing.Hearings shall be conducted informally as to the order of proceeding and presentation of evidence.The Hearing Officer shall admit evidence over hearsay objections where the offered evidence has substantial probative value and reliability. Further, copies of records and documents prepared in the ordinary course of business may be admitted, without objection as to foundation, but subject to argument as to weight, admissibility, and authenticity.Summary accounting records may be admitted subject to satisfactory proof of the reliability of the summaries.In all cases, the decision of the Hearing Officer shall be made solely upon substantial and reliable evidence.All expenses incurred in the hearing shall be paid by the party incurring the same. Redeterminations upon a "petition for redetermination" Shall follow the same conditions, except that no oral hearing shall be Hearing Ruling. Issue his ruling the close of the Notice of Refund (60) days of the held. In either case, the Hearing Officer not later than forty-five (45) days record by the Hearing Officer. Notice of Refund or Adjusted Assessment.Within sixty issuance of the Hearing Officer's shall after decision, the Tax Collector shall issue to the taxpayer either a notice of refund or an adjusted assessment recalculated to conform to the Hearing Officer's decision. (c)Stipulations that future tax is also protested.A taxpayer may enter into a stipulation with the Tax Collector that future taxes of similar nature are also at issue in any protest or appeal.However, unless each stipulation is made, it is presumed that the protest or appeal deals solely and exclusively with the tax specifically protested and no other. When a taxpayer enters into such a stipulation with the Tax Collector that future taxes of similar nature will be included in any redetermination, hearing, or court case, it is the burden of that taxpayer to identify, segregate, and keep record of such income or protested taxable amount in his books and records in the same manner as the taxpayer is required to segregate exempt income. (d)When an assessment is final. Page 27 of 29 (1)If a request for administrative review and petition for hearing or redetermination of an assessment made by the Tax Collector is not filed within the period required by subsection (b) above, such person shall be deemed to have waived and abandoned the right to question the amount determined to be due and any tax, interest, or penalty determined to be due shall be final as provided in subsections 3.15-545(a) and 3.16-555(f). (2) The decision made by the Hearing Officer upon administrative review by hearing or redetermination shall become final thirty (30) days after the taxpayer receives the notice of refund or adjusted assessment required by subsection (b)(8) above, unless the taxpayer appeals the order or decision in the manner provided in Section 3.16- 575. (e) The provisions of the State taxpayer bill of rights (A.R.S. Section 42-2051 et seq.) shall not apply. Section 8.Regulation 8A-350.3 of the Tax Code of the City of Apache Junction is amended to read: Reg. 8A-350.3.Recordkeeping:out -of -City and out -of -State sales. (a) Out -of -City Sales.Any person engaging or continuing in a business who claims out -of -City sales shall maintain and keep accounting records or books indicating separately the gross income from the sales of tangible personal property from such out -of -City branches or locations. (b)Out -of -State Sales.Persons engaged in a business claiming out -of -State sales shall maintain accounting records or books indicating for each out -of -State sale the following documentation: (1)documentation of location of the buyer at the time of order placement; and (2)shipping,delivery,or freight documents showing where the buyer took delivery; and (3)documentation of intended location of use or storage of the tangible personal property sold to such buyer. Section 9.Section 8A-310 of the Tax Code of the City of Apache Junction is amended to read: Section 8A-310.Licensing:duration of license, transferability; display. (a) Except as provided in Section 8A-320,the Privilege License shall be valid only for the calendar year in which it is issued unless renewed each year by filing the appropriate application for renewal and paying the renewal fee of fifty dollars ($50.00) which is due and payable on January 1 and shall be Page 28 of 29 considered delinquent if not received on or before the last business day of January.Application and payment for renewal must be received within the Tax Collector's office by such date to be deemed filed and paid. (b) The Privilege License shall be nontransferable between owners or locations, and shall be on display to the public in the licensee's place of business. (c) Any licensee who permits his license to expire through cancellation as provided in Section 8A-320, by his request for cancellation, by surrender or by the cessation of the business activity for which the license was issued, and who thereafter applies for license, shall be granted a new license as an original applicant and shall pay the current license fee.Any licensee who loses or misplaces his Privilege License which is still in effect shall be charged the current license fee for each reissuance of a license. (d)(Reserved) Page 29 of 29