HomeMy WebLinkAboutORD1359ORDINANCE NO. 1359
AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE
JUNCTION, ARIZONA, RELATING TO THE TRANSACTION PRIVILEGE LICENSE TAX
(SALES TAX); AMENDING THE TAX CODE OF THE CITY OF APACHE JUNCTION BY
CONTINUING THE RATE OF TAXATION BY TWO -TENTHS OF ONE PERCENT (.2%)AS
ORIGINALLY ADOPTED BY ORDINANCE NO. 1129; DESIGNATING THE PURPOSE;
DESIGNATING AN EFFECTIVE DATE; DESIGNATING A TERMINATION DATE;
PROVIDING FOR EXISTING CONTRACTS; PROVIDING FOR PENALTIES; REPEALING
ANY CONFLICTING PROVISIONS; PROVIDING FOR SEVERABILITY; AND DECLARING
AN EMERGENCY.
WHEREAS, Arizona Revised Statutes § 9-240(B)(26) conveys upon the
Mayor and City Council the power to levy taxes including a transaction
privilege license tax (sales tax); and
WHEREAS, the City of Apache Junction has sustained diminished
revenues due to the current nationwide economic downturn; and
WHEREAS, the City of Apache Junction has already received notice that
its proportionate share of state shared revenues for Fiscal Year 2010-2011
will be decreased by approximately $1.1 million; and
WHEREAS, since Fiscal Year 2007-2008, the City of Apache Junction
already reduced its personnel and operating costs by $5.6 million; and
WHEREAS, having no city property tax, the City of Apache Junction
relies heavily upon sales tax revenues to provide city services; and
WHEREAS, the Mayor and City Council have determined that the
continuation of the two -tenths of one percent (.2%) transaction privilege
license tax (sales tax) as set forth in this ordinance is necessary to
sustain the quality for comunity residents and enhance the public health,
safety and welfare; and
WHEREAS, at their regular meeting of February 16, 2010, a majority of
the Mayor and City Council directed staff to prepare an ordinance for an
extension of the .2% sales tax in compliance with State law and the Model
City Tax Code; and
WHEREAS, changes to the transaction privilege tax rate are affected
by amending the Tax Code of the City of Apache Junction,and by appropriate
notification to city taxpayers and to the Arizona Department of Revenue.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE
CITY OF APACHE JUNCTION, ARIZONA,AS FOLLOWS:
ORDINANCE NO.1359
PAGE 1 OF 5
5
SECTION I IN GENERAL
A.The tax rate in each of the following sections of the city tax code
is continued at the rate of two and two -tenths percent (2.2%):
Section 8A-405 Advertising
Section 8A-410 Amusements, exhibitions, and similar activities
Section
Section
Section
Section
Section
Section
Section
Section
8A-420
8A-425
8A-427
8A-430
8A-435
8A-440
8A-444
8A-445
Section 8A-447
Feed at wholesale
Job printing
Manufactured buildings
Timbering and other extraction
Publishing and periodicals distribution
Rental occupancy
Hotels
Rental, leasing, and licensing for use of real
property
Additional tax upon transient lodging
Section 8A-450 Rental, leasing, and
personal property
Section 8A-455 Restaurants and bars
Section 8A-475 Transporting for hire
licensing for use of tangible
B.The tax rate in the following sections of the city tax code
is continued at the rate of three and two -tenths percent
(3.2%):
Section 8A-470 Telecommunications services
Section 8A-480 Utility services
C.Section 8A-460 of the city tax code shall continue to read:
Section 8A-460.Retail sales:measure of tax; burden of proof;
exclusions
(a)The tax rate shall be at the amount equal to two and two-
tenths percent (2.2%) of the gross income from the business
activity upon every person engaging or continuing in the
business of selling personal property at retail.
(b)The burden of proving that a sale of tangible personal
property is not a taxable retail sale shall be upon the
person who made the sale.
(c)Exclusions.For the purpose of this Chapter, sales of
tangible personal property shall not include:
ORDINANCE NO. 1359
PAGE 2 OF 5
(1)sales of stocks, bonds, options, or other similar
materials.
(2)sales of lottery tickets or shares pursuant to Article
1, Chapter 5, Title 5, Arizona Revised Statutes.
(3)sales of platinum, bullion, or monetized bullion,
except minted or manufactured coins transferred or
acquired primarily for their numismatic value as
prescribed by Regulation.
(4)gross income derived from the transfer of tangible
personal property which is specifically included as
the gross income of a business activity upon which
another Section of this Article imposes a tax, shall
be considered gross income of that business activity,
and are not includable as gross income subject to the
tax imposed by this Section.
(5)sales by professional or personal service occupations
where such sales are inconsequential elements of the
service provided.
(d)Notwithstanding the provisions of subsection (a) above, when the
-gross income from the sale of a single item of tangible personal
property exceeds two thousand dollars ($2,000), the two and two-
tenths (2.2%) tax rate shall apply to the first $2,000.Above
$2,000, the measure of tax shall be at a rate of one and two -tenths
percent (1.2%).
(e)When this City and another Arizona city or town with an equivalent
excise tax could claim nexus for taxing a retail sale, the city or
town where the permanent business location of the seller at which the
order was received shall be deemed to have precedence, and for the
purposes of this Chapter such city or town has sole and exclusive
rights to such tax.
(f)The appropriate tax liability for any retail sale where the order is
received at a permanent business location of the seller located in
this City or in an Arizona city or town that levies an equivalent
excise tax shall be at the tax rate of the city or town of such
seller's location.
(g)Retail sales of prepaid calling cards or prepaid authorization
numbers for telecommunications services, including sales of
reauthorization of a prepaid card or authorization number, are
subject to tax under this Section.
SECTION II CONSTRUCTION CONTRACTING EXCEPTION
ORDINANCE NO. 1359
PAGE 3 OF 5
In accordance with Session Laws (House Bill 2008), Forty -Ninth Arizona
State Legislature, 2009 Third Special Session, Chapter 7, § 42, the tax
rate in each of the following sections of the city tax code is reduced to
two percent (2%) on September 2, 2010 and shall automatically change to two
and two -tenths percent (2.2%) on July 1, 2011:
Section 8A-415 Construction contracting:construction contractors
Section 8A-416 Construction contracting:speculative builders
Section 8A-417 Construction contracting:owner -builders who are
not speculative builders
SECTION III DESIGNATING THE PURPOSE
For such period of time that the City of Apache Junction, Arizona, levies
the tax as described in Section I above, the revenues collected from the
two -tenths of one percent (.2%) continuation shall be used for expenses
related to general government.
SECTION IV DESIGNATING AN EFFECTIVE DATE
The provisions of this ordinance shall become effective on September 2,
2010.
SECTION V DESIGNATING A TERMINATION DATE
The provisions of this ordinance shall terminate on September 1, 2016, at
which time the tax rates as set forth in Section I and Section II of this
ordinance shall be automatically reduced by two -tenths of one percent
(.2%).
SECTION VI PROVIDING FOR EXISTING CONTRACTS
The tax imposed pursuant to Section I(D) of this ordinance shall not apply
to contracts entered into prior to September 1, 2010.
SECTION VII PROVIDING FOR PENALTIES
Any person found guilty of violating any provision of these amendments to
the tax code shall be guilty of a class one misdemeanor and shall be
prosecuted pursuant to Article 1-8 of the Apache Junction City Code and
Section 8A-580 of the Tax Code of the City of Apache Junction.
SECTION VIII REPEALING ANY CONFLICTING PROVISIONS
ORDINANCE NO.1359
PAGE 4 OF 5
All ordinances and parts of ordinances in conflict with the provisions of
this ordinance or any part of the code adopted herein by reference are
hereby repealed.
SECTION IX PROVIDING MIR SEVERABILITY
If any section, subsection, sentence, clause, phrase or portion of this
ordinance is for any reason held to be invalid or unconstitutional by the
decision of any court of competent jurisdiction, such decision shall not
affect the validity of the remaining portions thereof.
SECTION X DECLARING AN EMERGENCY
Whereas it is necessary for the preservation of the peace, health, and
safety of the City of Apache Junction, Arizona, an emergency is declared to
exist, and this ordinance shall become immediately operative and in force
from and after the date of posting.
PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE
JUNCTION, ARIZONA, THIS 2ND DAY OF MARCH ,2010.
SIGNED AND ATTESTED TO THIS 2ND DAY OF MARCH ,2010.
) , O l d j -4
HN S. INSALACO
Mayor
ATTEST:
KATHLEEN CONNELLY
City Clerk
APPROVED AS TO FORM:
RICHARD JOEL STERN
City Attorney
ORDINANCE NO. 1359
PAGE 5 OF 5
" f l u ,