HomeMy WebLinkAboutORD6351
ORDINANCE NO.635
AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE
JUNCTION,ARIZONA,ADOPTING BY REFERENCE THE CITY TAX CODE OF
THE CITY OF APACHE JUNCTION,ARIZONA,AND ANY AMENDMENTS THERETO;
REPEALING ANY CONFLICTING PROVISIONS;PROVIDING FOR SEVERABILITY;
AND DECLARING AN EMERGENCY.
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 THE CITY TAX CODE OF THE CITY OF APACHE JUNCTION,
ARIZONA,AND ANY AMENDMENTS THERETO,three copies of which are on file in the
office of the City Clerk,which document was made a public record by Resolution
No.88-19,is hereby referred to,adopted and made a part hereof as i f fully
set out in this ordinance,the provisions thereof to become effective on
the 21st day of June,1988.
SECTION I I REPEALING ANY CONFLICTING PROVISIONS
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ordinance or any part of the code adopted herein by reference are hereby repealed.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 III PROVIDING FOR SEVERABILITY
I f any section,subsection,sentence,phrase,clause or portion of this ordinance
or any part of the code adopted herein by reference is,for any reason,held to
be invalid or unconstitutional by the decision of any court of competent juris-
disction,such decision shall not affect the validity of the remaining portions
thereof.
SECTION IV EMERGENCY CLAUSE
I t being necessary for the preservation of the peace,health and safety of the
City of Apache Junction,Arizona,that this ordinance become effective immedi-
ately,an emergency is hereby declared to exist and this ordinance shall be
effective immediately upon its passage and adoption.
PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,
ARIZONA,THIS 21st DAY OF June ,1988.
SIGNED AND ATTESTED TO THIS 23rd DAY OF,/June ,1988.
ORDINANCE NO.635
PAGE ONE OF TWO
MAN
Matior
S.HILL
By K'nneth Bluntschly,Vice Mayor
ATTEST:
KATHLEEN CONNELLY
City Clerk
III APPROVED AS TO FORM:
r A t
DAVWF.-ADEXANDER
City Attorney
ORDINANCE NO.635
PAGE TWO OF TWO
Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
ARTICLE III - LICENSING AND RECORDKEEPING (ctd)
310 Licensing:duration of license; transferability; display.
17 (a)Valid until surrendered/cancelled/revoked.
17 (b)Non -transferable between owners or locations, and must be
publicly displayed at business location.
17 (c)Replacement of license treated. as new license for purposes of
application and fee.
17 (d)(Reserved)
17 (e)(Reserved)
17 (f)(Reserved)
17 (g)(Reserved)
17 (h)(Reserved)
17 (i)(Reserved)
17 •315 (Reserved)
320 Licensing:cancellation; revocation.
17 (a)Cancellation if inactive.
17 (b)Revoked for failure to comply.
17.1 (c)Notice and Hearing
1Z.1 (d)Reinstatement
18 330 Operating without a license.
350 Recordkeeping requirements.(Reg. 8A-350.1, Reg. 8A-350.2,
- Reg. 8A-350.3)
18 (a)Must maintain books and records for limitation period and
make available to Tax Collector during any business day.
18 (b)Tax Collector can specify books and records kept after audit
reveals inadequate recordkeeping.
360 Recordkeeping:claim of exclusion, exemption, deduction, or credit;
documentation; liability.(Reg. 8A-360.1, Reg. 8A-360.2)
18 (a)Claim of exemption must be documented.
18 (b)Vendee's claim of exemption shifts tax liability to vendee.
370 Inadequate or unsuitable records.
19 If records inadequate, taxpayer must either:
(1)provide other suitable records, or
(2)correct/reconstruct records.
ARTICLE IV - PRIVILEGE TAXES
400 Imposition of Privilege Taxes; presumption.
20 (a)Taxes imposed:•
(1)privilege taxes on gross incomes specified below
(2)privilege taxes on rental occupancy
20 (b)Taxes imposed by this Chapter in addition to others.
20 (c)Presumption.
20 (d)Limitation of exemptions, deductions, and credits.
405 Advertising.(Reg. 8A-405.1, Reg. 8A-405.2)
20-21 (a)Measure of tax; rate; definition of "local advertising".
21 (b)(Reserved)
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23
23
Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
ARTICLE IV - PRIVILEGE TAXES (ctd)
22 407 (Reserved)
410 Amusements, exhibitions, and similar activities.
21 (a)Measure of tax; rate..
(1)Charges for admission or amusement.
(2)health spas, fitness centers and related activities
21 (b)(Reserved)
415 Construction contracting:prime contractors.(Reg. 8A-415.1,
Reg. 8A-415.2)
21 (a)Measure of tax; rate.
(1)Exclusion of groundwater measuring devices.
(2)(Reserved)
21 (b)Deductions.
(1)Subcontracting
(2)35%
22 (c)Subcontractors.
(1)Working for another contractor.
(2)Working for an owner building for sale.
416 Construction contracting:speculative builders.(Reg. 8A-416.1,
Reg.8A-416.2)
22 (a)Measure of tax; rate.
(1)sales price at close of escrow
(2)improved real property
(3)sale
(4)partially improved residential real property
22-22.1 (b)Exclusions
(1)prior value for reconstruction
(2)land not deductible
(3)(Reserved)
(4)stipulations for exclusion of gross income
22.1 (c)Deductions & credits per Section 8A-418.
417 Construction contracting:owner -builders who are not speculative
builders.
23 (a)Measure of tax; rate.
(1)payments to subcontractors
(2)purchases of building materials
23 (b)Deductions 6c credits per Section 8A-418.
23 (c)Reporting; statute of limitations.•
23 (d)(Reserved)
418 Construction contracting:deductions and tax credits available to
speculative builders and owner -builders.
(a)35% deduction
(b)Tax credits
(1)City taxes paid on materials purchases
(2)City taxes paid on construction contracting
(3)Tax credits must relate to income reported.
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Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
ARTICLE IV - PRIVILEGE TAXES (ctd)
24 420 Feed at wholesale
(a)Measure of tax; rate.
(b)Deductions
(1)out -of -City sales
•(2)out -of -State sales
425 Job printing.(Reg. 8A-425.1)
24 (a)Measure of tax; rate.
24 (b)Deductions
(1)job printing for resale
(Z)out -of -City sales
(3)out -of -State sales
(4)(Reserved)
(5)sales to nonprofit primary health care facilities
24 430 Mining, timbering, and other extraction.
(a)Measure of tax; rate.
(1)mining and metallurgy, but not sand and gravel
(2)timbering
(3)oil and gas extraction/refining
24 (b)Tax based on location of activity, not location of sale.
24 (c)If shipped out-of-state unsold, tax based on value at time of•
shipment.
435 Publishing and periodicals distribution.(Reg. 8A-435.1)
25 (a)Measure of tax; rate.
(1)publishing in the City
(2)distribution of periodicals not published in the City
25 (b)Location of publication
25 (c)Subscription income
25 (d)Circulation
25 (e)Allocation of taxes between cities and towns.
(1)allocation by circulation in taxing municipalities
(2)allocation of balance between locations of publication
25 (f)Sales to nonprofit primary health care facilities
26-27 440 Rental occupancy tax
445 Rental, leasing, and licensing for use of real property.(Reg.
•8A-445.1, Reg. 8A-445.2, Reg. 8A-445.3)
28 (a)Measure of tax, rate.
(1)reimbursements for property tax, repairs, improvements
(2)charges for services
(3)special case telecommunication services
28 (b)Exemption for utility reimbursement based upon separate
meter
28 (c)Exemption for primary health care facilities income.
28 (d)Exemption for joint pole use charges.
28 (e)(Reserved)
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Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
ARTICLE IV - PRIVILEGE TAXES (ctd)
445 Rental, leasing, and licensing for use of real property.(ctd)
28 (f)(Reserved)
28 (g)(Reserved)
28 (h)(Reserved)
•28 (0 (Reserved)
28 446 (Reserved)
28 447 (Reserved)
450 Rental, leasing or licensing for use of tangible personal property.
(Reg. 8A-450.1, Reg. 8A-450.2, Reg. 8A-450.3)
28 (a)Measure of tax; rate.
29 (b)Special provisions relating to long-term motor vehicle leases
29 (c)Exemptions
(1)rent for re -rent
(2)semi -permanently or permanently installed in another
taxing city (Reg. 8A-450.4)
(3)motion picture films, etc. to amusement, etc. businesses
(4)(A)prosthetics
(B)income -producing capital equipment
•(C)mining and metallurgical supplies.
(5)to a non-profit primary health care facility
•(6)delivery, installation, repair, maintenance charges
(7)joint pole use charges
(8)(Reserved)
(9)(Reserved)
455 Restaurants and bars.
29 (a)Measure of tax; rate.(Reg. 8A-455.1)
29.1 (b)Delivery, set-up, and clean-up charges of off -premises
restaurants
29.1 (c)Sales to nonprofit primary health care facilities
460 Retail sales:measure of tax; burden of proof; exclusions.
30 (a)Measure of tax; rate (Reg. 8A-460.2, Reg. 8A-460.3,
Reg. 8A-460.6)
30 •(b)Burden of proof
30 (c)Exclusions
(I)stocks, bonds, etc.
(2)lottery tickets
(3)bullion and monitized bullion (Reg. 8A-460.5)
(4)taxable elsewhere in this Chapter (Reg. 8A-460.1)
(5)professional services (Reg. 8A-460.4)
30 (d)(Reserved)
30 (e)Seller's business location takes precedence between cities
30 (f)Tax liability based upon seller's location
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Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
ARTICLE IV - PRIVILEGE TAXES (ctd)
465 Retail sales:exemptions.
30 (a)sales for resale (Reg. 8A-465.3)
30 (b)out -of -City sales and out -of -State sales
30 (c)delivery, installation, or other direct customer services
30 (d)repair labor (Reg. 8A-465.1).
31 (e)(Reserved)
31 (f)prosthetics
31 (g)income -producing capital equipment
31 (h)rental equipment and rental supplies
31 (i)mining and metallurgical supplies
31 (j)fuels subject to Arizona fuel use tax
31 (k)sales to a licensed construction contractor
31 (1)(Reserved)
31 (m)component or ingredient parts sold to job printers,
manufacturers, or publishers
31 (n)sales to the Federal government:
(1)100% by assembler, manufacturer, modifier, repairer
(2)50% otherwise
31.-(o)food to restaurants
31 (p)sales to non-profit primary health care facilities
31 (q)food purchased with food stamps or child nutrition coupons
32 (r)(Reserved)
(1)(Reserved)
(2)(Reserved)
(3)(Reserved)
(4)(Reserved)
32 (s)groundwater measuring devices
32 (t)(Reserved)
32 (u)(Reserved)
32 (v)(Reserved)
32 (w)(Reserved)
32 (x)(Reserved)•
32 (y)(Reserved)
32 (z)(Reserved)
470 Telecommunication services. (Reg. 8A-470.1)
32 (a)Measure of tax; rate
(1)telecommunication services definition
(2)gross income definition
33 (b)Resale telecommunication services
33 (c)Interstate transmissions
33 (d)Tax credit for franchise and license fees paid
33 (e)Cable TV income
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Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
ARTICLE IV - PRIVILEGE TAXES (ctd).
475 Transporting for hire.(Reg. 8A-475.1)
33 (a)Railroads
33 (b)Pipelines
33 (c)Aircraft (freight only)
33 (d)Motor vehicles, except:•
(1)income subject to the State Ton -Mile Tax
(2)governmentally adopted urban mass transit
(3)(Reserved)
(4)(Reserved)
480 Utility services.
33 (a)Measure of tax; rate.
(1)services to in -City residents
(2)(Reserved)
34 (b)Sales of natural gas for generation of electricity deemed retail
sales
34 (c)Resale utility services
34 (d)Tax credit for franchise fees paid
34 -(e)Sales to nonprofit primary health care facilities
ARTICLE V - ADMINISTRATION
500 Administration of this Chapter; rule making.
35 (a)Administration vested in the Tax Collector
35 (b)Tax Collector shall prescribe forms and procedures
35 (c)City Council approves Regulations
510 Divulging of information prohibited; exceptions.
35 (a)Divulging information prohibited except as provided here
35 (b)City Council authorized examination by another U.S.
jurisdiction
35 (c)Tax Collector can provide information to another Arizona
privilege tax administration
35 (d)Successors, receivers, trustees etc.
35 (e)City Attorney authorized to c ollection agencies
35 (f)Other Arizona City when tax paid to wrong city
36 (g)Others involved in allocation of publishing tax
36 (h)By agreement approved by City Council with another
jurisdiction.
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Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
ARTICLE V - ADMINISTRATION (ctd)
520 Reporting and payment of tax.
36 (a)Returns (Reg. 8A-520.0
36 (b)Payment
36 (c)Requirement of security
36 (d)Method of reporting:"cash basis" or "accrual basis" (Reg.
8A-520.2)
(1)all income to be reported by same method
(2)special considerations for construction contractors:
(A)prime contractors
(B)speculative builders
(C)other owner -builders
530 When tax due; when delinquent; verification of return; extensions.
36 (a)Report on same date as state sales tax.
.37 (b)(Reserved)
37 (c)(Reserved)
37 (d)(Reserved)•
37 (e)Extensions
540 Interest and civil penalties.
37 (a)(Reserved)
37 (b)(Reserved)
37 (c)(Reserved)
37 (d)(Reserved)
37 (e)(Reserved)
37 (f)(Reserved)
37 (g)(Reserved)
545 Deficiencies; when inaccurate return is filed; when no return is
filed; estimates.
37 (a)Tax Collector may recompute or estimate
(1)(Reserved)
(2)(Reserved)
37 (b)Estimates; presumption
550 Limitation periods.
37 (a)Deficiency assessments
38 (b)(Reserved)
38 (c)No limitation if no return filed, fraud, operating without
license
38 (d)Special provisions relating to owner -builders
-III-
Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
ARTICLE V - ADMINISTRATION (ctd)
555 Tax Collector may examine books and other records; failure to
provide records.
38 (a)Tax Collector can examine books and records
38 (b)(Reserved)
38 (c)(Reserved)
38 (d)Tax Collector may use any generally accepted auditing
standards or procedures
38 (e)Failure to keep or provide adequate records allows Tax
Collector can estimate
38 (0 (Reserved)
560 Erroneous payment of tax; credits and refunds; limitations.
38 (a)Tax Collector may authorize credits and refunds.Credits
cancelled within 1 year after issuance
38 (b)(Reserved)
38 (c)(Reserved)
38 (d)(Reserved)
38 (e)(Reserved)
38 (f)Allowance/denial of credit is subject to appeal per Section
8A-570.
39 (g)Refunds made from Privilege Tax revenue accounts
565 Payment of tax to the incorrect Arizona city or town.
39 (a)Tax paid to wrong city will be refunded/assessed to correct
city for the period 48 months from date of request.Only
penalty or interest actually paid to other city relating to tax
requested
39 (b)A.R.S. Section 42-1452 will govern.
39 (c)"Other city" means State Department of Revenue if city in
State Collection Program.
567 Allocation of tax on retail sales when more than one city or town
has nexus.
39 (a)Conditions for allocation -- tax to be shared equally
39 (b)Mobile equipment
39-40 (c)Shared equally
40 (d)Allocation follows rules of 8A-565
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Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
ARTICLE V - ADMINISTRATION (ctd)
570 Administrative review; petition for hearing or for redetermination;
hearing or redetermination; finality of order.
40 (a)Informal conference with auditor prior to assessment
40 (b)Payment of tax under protest
40 (c)Administrative review
(1)filing a petition
(2)(Reserved)
(3)(Reserved)
(4)(Reserved)
(5)hearings
(6)(Reserved)
(7)(Reserved)
40 (d)(Reserved)
40 (e)(Reserved)
571 Jeopardy assessments.(Reg. 8A-571.1)
40 (a)If jeopardy assessment, Tax Collector will notify taxpayer at
time of assessment, and demand immediate payment
40.-(b)Taxpayer must file request for administrative review together
with posting bond or collateral within 10 days
40 (c)(Reserved)
40 (d)(Reserved)
40 (e)(Reserved)
575 Judicial review.
41 (a)Taxpayer's appeal
41 -(b)(Reserved)
41 (c)(Reserved)
41 (d)(Reserved)
41 (e)No estoppel
41 (f)Counterclaims
41 577 (Reserved)
580 Criminal penalties
41 (a)It is unlawful to knowingly or willfully:
(1)fail/refuse to file a return
(2)fail/refuse to pay tax when due
(3)make false/fraudulent return
(4)make false/fraudulent statement to claim tax exemption
(5)fail/refuse to permit lawful examination of books or
records
(6)fail/refuse to remit taxes collected from customer
(7)advertise that tax is not a consideration of price
(8)fail/refuse to obtain a Privilege License
(9)falsify/forge document to obtain an exemption
41 (b)Such acts constitute a Class One Misdemeanor
42 (c)In addition, knowingly swearing to a false statement subject to
laws of perjury
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Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
ARTICLE V - ADMINISTRATION (ctd)
590 Civil actions.
42 (a)Liens
(1)City can file a lien for tax, penalty or interest due
(2)Lien recording and filing
(3)Filing a lien does not preclude any other collection
methods
(4)Liens can be released in whole or in part upon payment
42 (b)Actions to recover tax
595 Collection of taxes when there is succession in and/or cessation of
business.
42 (a)This is in addition to any other provisions in the City Code
43 (b)Taxes due are lien on property
43 (c)Foreclosure or similar transfer of improved real property
43 (d)Back taxes due are liability of:
(1)seller if received Certificate at time of sale
(2)buyer otherwise
ARTICLE VI - (Reserved)
44 600 (Reserved)
44 601 (Reserved)
44 602 (Reserved)
44 610 (Reserved)
44 620 (Reserved)
44 630 (Reserved)
44 640 (Reserved)
44 650 (Reserved)
44 660 (Reserved)
REGULATIONS
RI 100.1 Brokers.
R1.1 -R2 100.2 Delivery, installation, or other direct customer services.
R3 100.3 Retailers.
R3 100.4 Sales to Indians.
R3 110.1 Income -producing capital equipment:in general.
R3 -R5 110.2 Income -producing capital equipment:manufacturing equipment; job
printing equipment.
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Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
REGULATIONS (ctd)
R5 -R8 115.1 Computer hardware, software, and data services.
R8 120.1 (Reserved)
R8 200.1 When refundable deposits are included in gross income.
R8 250.1 Excess tax collected.
R8 270.1 Proprietary activities of municipalities are not deemed activities of
a governmental entity.
R9 270.2 Proprietary clubs.
R9 -R10 300.1 Who must apply for a license.
RIO 310.1 (Reserved)
RIO 310.2 (Reserved)
RIO 310.3 (Reserved)
RIO -R11 356.1 Recordkeeping:income.
R 11-R12 350.2 Recordkeeping:expenditures.
R12 350.3 Recordkeeping:out -of -City and out -of -State sales.
R12 360.1 Proof of exemption:sale for resale; sale, rental, lease, or license
of rental equipment.
R13 -R14 360.2 Proof of exemption:exemption certificate.
R15 405.1 Local advertising examples.
R15 405.2 Advertising activity within the City.
R15 407.1 (Reserved)
R15.1 -R16 415.1 Distinction between the categories of construction contracting.
R16 -R17 415.2 Distinction between construction contracting and certain related
activities.
R17 -R18 416.1 Speculative builders: homeowner's bona fide non -business sale of a
family residence.
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Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
REGULATIONS (ctd)
R18 -R19 416.2 Reconstruction contracting.
R19 425.1 Distinction between job printing and certain related activities.
R19 435.1 Distinction between publication of periodicals and certain related
activities.
R19.1 435.2 Advertising income of publishers and distributors of newspapers and
other periodicals.
R20 445.1 (Reserved)
R20 445.2 Rental, leasing, and licensing of real property as lodging:
refundable and non-refundable deposits.
R20 445.3 Rental, leasing, and licensing of real property as lodging:room and
board; furnished lodging.
R20 447.1 (Reserved)
(R20 -R21 450.1 Distinction between rental, leasing, and licensing for use of tangible
personal property and certain related activities.
R21 450.2 Rental, leasing, and licensing for use of tangible personal property:
membership fees; other charges.
R21 450.3 Rental, leasing, and licensing for use of equipment with operator.
R21 -R22 450.4 Rental, leasing, and licensing for use of tangible personal property:
semi -permanently or permanently installed tangible personal
property.
R22 450.5 Rental, leasing, and licensing for use of tangible personal property:
delivery, installation, repair, and maintenance charges.
R22 455.1 Gratuities related to restaurant activity.
R22.1 -R23 460.1 Distinction between retail sales and certain other transfers of
tangible personal property.
R23 460.2
R24 460.3
R24 -R25 460.4
Retail sales:trading stamp company transactions.
Retail sales:membership fees of retailers.
Retail sales:professional services.
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Index to Apache Junction Tax Code
PAGES SECTION DESCRIPTION
REGULATIONS (ctd)
R25 460.5 Retail sales:monitized bullion; numismatic value of coins.
R25 460.6 Retail sales:consignment sales.
R26 465.1 Retail sales:repair services.•
R26 465.2 (Reserved)
R26 -R27 465.3 Retail sales:sale of containers, paper products, and labels.
R27 465.4 (Reserved)
R27 470.1 Telecommunication services.
R27 475.1 Distinction between transporting for hire and certain related
activities.
R28 520.1 (Reserved)
R28 520.2 Change of method of reporting.
R28 555.1 (Reserved)
R28 571.1 Collection of tax in jeopardy.
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"Prosthetic"means any of the following tangible personal property if such items
are prescribed or recommended by a licensed podiatrist,chiropractor,dentist,
physician or surgeon,naturopath,optometrist,osteopathic physician or surgeon,
psychologist, 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 and insulin syringes, 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.
"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.
"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)(Reserved)
(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.
"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 equipmentwii 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 indiyiduals,whose legal
addresses are determinative of residence,the engaging, continuing,or conducting
of regular business activity within the City.
Article 1111- Licensing and Recordkeeping
Sec. 8A-300.Licensing requirements.
(a)The following persons shall make application to the Tax Collector for a
Privilege License,accompanied by a nonrefundable fee of two dollars
($2.00),and no person shall engage or continue in business or engage in
such activities until he shall have such a license:
(1)every person desiring to engage or continue in business activities
within the City upon which a Privilege Tax is imposed by this
Chapter.
(2)(Reserved)•
(3)every person required to report and pay a tax upon Rental
Occupancy, as imposed by Section 8A-440.
(b)A person engaged in more than one activity subject to City Privilege
and Use Taxes at any one business location is not required to obtain a
separate license for each activity;provided that,at the time such
person makes application for a license, he shall list on such application
each category of activity in which he is engaged.The licensee shall
inform the Tax Collector of any changes in his business activities within
thirty (30) days.
(c)Limitation.The issuance of a Privilege License by the Tax Collector
shall in no way be construed as permission to operate a business activity
in violation of any other law or regulation to which such activity may
be subject.
Sec. 8A-305.Special licensing requirements.
(a)Partnerships.Application for a Privilege License for a partnership
engaging or continuing in business in the City shall provide,as a
minimum,the names and addresses of all general partners.Licenses
issued to persons engaged in business as partners,limited or general,
shall be in the name of the partnership.
(b)Corporations.Application for a Privilege License for a corporation
engaging or continuing in business in the City shall provide,as a
minimum, the names and addresses of both the Chief Executive Officer
and Chief Financial Officer of the corporation.Licenses issued to
persons engaged in business as corporations shall be in the name of the
corporation.
(c)Multiple Locations or Multiple Business Names.A person engaged in or
conducting one or more businesses at two (2)or more locations or
under two (2)or more business names shall procure a license for each
such location or business name.A "location"is a place of a separate
business establishment.
(d)(Reserved)
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Sec. 8A-310.Licensing:duration of license; transferability; display.
(a)Except as provided in Section 8A-320,the Privilege License shall be
valid until request for cancellation and/or surrender of the license by
the licensee or expiration through cessation by the licensee of the
business activity for which it was issued.
(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 of the license, 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)
(e)(Reserved)
(f)(Reserved)
(g)(Reserved)
(h)(Reserved)
(i)(Reserved)
Sec. 8A-315.(Reserved)
Sec. 8A-320.Licensing:cancellation; revocation.
(a)Cancellation.The Tax Collector shall be authorized to cancel the City
Privilege License of any licensee as "inactive" if the taxpayer, required
to report monthly to the City, has neither filed any return nor remitted
to the City any taxes imposed by this Chapter for a period of six (6)
consecutive months; or, if required to report quarterly, has neither filed
any return nor remitted any taxes imposed by this Chapter for two (2)
consecutive quarters;or,if required to report annually,has neither
filed any return nor remitted any taxes imposed by this Chapter when
such annual report and tax are due to be filed with and remitted to the
Tax Collector.
(b)Revocation.If any licensee fails to pay any tax, interest, penalty, fee,
or sum required to be paid to the City under this Chapter, or if such
licensee fails to comply with any other provisions of this Chapter,the
Tax Collector shall be authorized to revoke the City Privilege License
of said licensee.
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(c)Notice and Hearing.The Tax Collector shall deliver notice to such
licensee of cancellation or revocation of the Privilege License.If
within twenty (20) days the licensee so notified requests a hearing,he
shall be granted a hearing before the Tax Collector.
(d)After cancellation or revocation of a taxpayer's license,the taxpayer
shall not be relicensed until all reports have been filed; all fees,taxes,
interest, and penalties due have been paid; and he is in compliance with
the provisions of this Chapter.
-17.1-
(2)the advertising of a facility or of a service or activity in which
neither the facility nor a business site carrying on such service or
activity is located within the State.
(3)the advertising of a product which may only be purchased from an
out -of -State supplier.
(4)political advertising for United States Presidential and Vice
Presidential candidates only.
(5)advertising by means of product purchase coupons redeemable at
any retail establishment carrying such product but not product
coupons redeemable only at a single commonly designated
business entity.
(6)advertising transportation services where a substantial portion of
the transportation activity of the business entity advertised
involves interstate or foreign carriage.
(b)(Reserved)
Sec. 8A-407.(Reserved)
Sec. 8A-410.Amusements, exhibitions, and similar activities.
(a)The tax rate shall be at an amount equal to two percent (2%)of the
gross income from the business activity upon every person engaging or
continuing in the following businesses:
(1)operating or conducting theaters,movies,operas,shows of any
type or nature,exhibitions,concerts,carnivals,circuses,
amusement parks,menageries,fairs,races,contests,games,
billiard or pool parlors,bowling alleys,skating rinks,tennis
courts, golf courses, video games, pinball machines, public dances,
dancehalls,sports events,jukeboxes,batting and driving ranges,
animal rides,or any other business charging admission for
exhibition, amusement, entertainment, or instruction.
(2)health spas,fitness centers, or other persons who charge for the
use of premises for sports,athletic,or other health -related
activities,whether on a per -event use,or for long-term usage,
such as membership fees.
(b)(Reserved)
Sec. 8A-415.Construction contracting:prime contractors.
(a)The tax rate shall be at an amount equal to two percent (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)
(b)Deductions.
(I)Gross income derived from acting as a "subcontractor"shall be
exempt from the tax imposed by this Section.
(2)All construction contracting gross income subject to the tax and
not deductible herein shall be allowed a deduction of thirty-five
percent (35%).
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(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 both his Arizona
Transaction Privilege License number and 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 both his
Arizona Transaction Privilege License number and his City
Privilege License number.
Sec. 8A-416.Construction contracting:speculative builders.
(a)The tax shall be equal to two percent (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:
(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 providedlY 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)
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(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 both a valid City and valid
state 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 and the state
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
(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.
(c)Tax liability for speculative builders occurs at close of escrow or
transfer of title,whichever occurs earlier,and is subject to the
provisions of Section 8A-418, relating to deductions and tax credits.
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Sec. 8A-420.Feed at wholesale.
(a)The tax rate shall be at an amount equal to two percent (2%) of the
gross income from the business activity upon every person engaging or
continuing in the business of the sale of feed, salt, vitamins, and other
additives to feed,to persons engaged in the raising or feeding of
livestock or poultry purchased or raised for slaughter, with no deduction
for the income derived from the "resale" of such feed.
(b)The tax imposed by this Section shall not apply to:
(I)out -of -City sales.
(2)out -of -State sales.
Sec. 8A-425.Job printing.
(a)The tax rate shall be at an amount equal to two percent (2%)of the
gross income from the business activity upon every person engaging or
continuing in the business of job printing,which includes engraving of
printing plates,embossing,copying,micrographics,and photo
reproduction.
(b)The tax imposed by this Section shall not apply to:
(1)job printing purchased for the purpose of resale by the purchaser
in the form supplied by the job printer.
(2)out -of -City sales.
(3)out -of -State sales.
(4)(Reserved)
(5)Sales of job printing to any nonprofit primary health care facility,
except when the property sold 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.
Sec. 8A-430.Mining, timbering, and other extraction.
(a)The tax rate shall be at an amount equal to two percent (2%)of the
gross income from the business activity upon every person engaging or
continuing in the following businesses:
(1)mining, smelting, or producing for sale, profit, or commercial use
any copper, gold,silver,or other mineral product,compound,or
combination of mineral products; but not including the extraction,
removal, or production of sand,gravel,or rock from the ground
•for sale, profit, or commercial use.
(2)felling,producing,or preparing timber or any product of the
•forest for sale, profit, or commercial use.
(3)extracting,refining,or producing any oil or natural gas for sale,
profit, or commercial use.
(b)The rate specified in subsection (a) above shall be applied to the value
of the entire product mined, smelted, extracted, refined,produced, or
prepared for sale, profit, or commercial use, when such activity occurs
within the City, regardless of the place of sale of the product or the
fact that delivery may be made to a point without the City or without
the State.
(c)If any person engaging in any business classified in this Section ships or
transports products,or any part thereof,out of the State without
making sale of such products, or ships his products outside of the State
in an unfinished condition, the value of the products or articles in the
condition or form in which they existed when transported out -of -State
and before they enter interstate commerce shall be the basis for
assessment of the tax imposed by this Section.
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Sec. 8A-435.Publishing and periodicals distribution.
(a)The tax rate shall be at an amount equal to two percent (2%)of the
gross income from the business activity upon every person engaging or
continuing in the business activity of:
(1)publication of newspapers,magazines,or other periodicals when
published within the City, measured by the gross income derived
from notices,subscriptions,and local advertising as defined in
Section 8A-405.In cases where the location of publication is
both within and without this State,gross income subject to the
tax shall refer only to gross income derived from residents of this
State or generated by permanent business locations within this
State.
(2)distribution or delivery within the City of newspapers, magazines,
or other periodicals not published within the City,measured by
the gross income derived from subscriptions.
(b)"Location of Publication"is determined by:
(1)location of the editorial offices of the publisher,when the
physical printing is not performed by the publisher; or
(2)location of either the editorial offices or the printing facilities, if
the publisher performs his own physical printing.
•(c)"Subscription income"shall include all circulation revenue of the
publisher except amounts retained by or credited to carriers or other
vendors as compensation for delivery within the State by such carriers
or vendors,and further except sales of published items,directly or
through distributors,for the purpose of resale,to retailers subject to
the Privilege Tax on such resale.
(d)"Circulation,"for the purpose of measurement of gross income subject
to the tax, shall be considered to occur at the place of delivery of the
published items to the subscriber or intended reader irrespective of the
location of the physical facilities or personnel of the publisher.
However,delivery by the United States mails shall be considered to
have occurred at the location of publication.
(e)Allocation of taxes between cities and towns.In cases where
publication or distribution occurs in more than one city or town,the
measurement of gross income subject to tax by the City shall include:
(1)that portion of the gross income from publication which reflects
the ratio of circulation within this City to circulation in all
incorporated cities and towns in this State having substantially
similar provisions; plus
(2)only when publication occurs within the City,that portion of the
remaining gross income from publication which reflects the ratio
of circulation within this City to the total circulation of all
incorporated cities or towns in this State wi,thin which cities the
taxpayer maintains a location of publication.
(f)The tax imposed by this Section shall not apply to sales of newspapers,
magazines or other periodicals to any nonprofit primary health care
facility, except when the property sold 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.
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Sec. 8A-440.Rental occupancy.
(a)For the purposes of this Section only,the following definitions shall
apply:
(1)"Landlord"means any lessor of real property under a pre-existing
lease.
(2)"Pre-existing Lease"means any written lease, license for use,or
rental agreement entered into prior to December 1,1967; except
for the following:
(A)any bilateral amendment to such written agreement which
was entered into subsequent to December 1,1967,wherein
the length of the term or the size of the premises affected
is changed or both.
(B)any such agreement for lodging or lodging space.
(3)"Rent" means all consideration paid by the tenant to his landlord
or to another in payment of or diminution of his own or his
landlord's obligation in connection with the real property occupied
by the tenant, whether or not such occupancy is designated as a
rent, lease.or license for use of real property.
(4)"Tenant"means any lessee of real property under a pre-existing
lease.
(b)The tax rate shall be at an amount of two percent (2%) of the gross
rent paid by a tenant, to the extent of his occupancy of real property in
this City under a pre-existing lease, upon such tenant, for the privilege
of such occupancy, subject to the provisions of this Section.
(c)Exclusions.The tax imposed by this Section shall not apply to:
.(1)occupancy by a tenant which the Constitution or laws of the
United States or of the State of Arizona prohibit the City from
taxing.
(2)occupancy by a tenant of a landlord which the Constitution or
laws of the United States or of the State of Arizona prohibit the
City from taxing.
(3)occupancy of lodging or lodging space.
(4)occupancy of real property under other than a pre-existing lease.
(d)Duty of landlords.Every landlord of a tenant subject to the tax:
(1)shall collect the tax imposed by this Section from the tenant
liable for the tax at the same time as and together with the
tenant's periodic or other payment of rent.The tax required to
be collected shall constitute a debt owed by the landlord to the
City.
(2)shall be considered a taxpayer subject to all licensing,
recordkeeping, and reporting requirements of this Chapter.
(e)Duty of tenants.Every tenant liable for the tax:
(I)shall,in any instance in which the tax has not been collected by
his landlord,remit such tax to the Tax Collector,and in such
case, be subject to all licensing and reporting requirements of this
Chapter.
(2)shall maintain,and provide upon request,books and records
sufficient for the Tax Collector to determine the tax liability of
such tenant.
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Sec. 8A-445.Rental, leasing, and licensing for use of real property.
(a)The tax rate shall be at an amount equal to two percent (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 real
property located within the City for a consideration,to the tenant in
actual possession,including any improvements,rights,or interest in
such property; provided further that:
(1)Payments made by the lessee to,or on behalf of,the lessor for
property taxes,repairs,or improvements are considered to be
part of the taxable gross income.
(2)Charges for such items as telecommunications, utilities, pet fees,
or maintenance are considered to be part of the taxable gross
income.
(3)However, if the lessor engages in telecommunication activity, as
evidenced by installing individual metering equipment and by
billing each tenant based upon actual usage,such activity is
taxable under Section 8A-470.
(b)If individual utility meters have been installed for each tenant and the
lessor separately charges each single tenant for the exact billing from
the utility company, such charges are exempt.
(c)Charges by primary health care facilities to patients of such facilities
for use of rooms or other real property during the course of their
treatment by such facilities are exempt.
(d)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 are exempt from the tax imposed by this
Section.
(e)(Reserved)
(f)(Reserved)
(g)(Reserved)
(h)(Reserved)
(i)(Reserved)
Sec. 8A-446.(Reserved)
Sec. 8A-447.(Reserved)
Sec. 8A-450.Rental, leasing, and licensing for use of tangible personal
property.
(a)The tax rate shall be at an amount equal to two percent (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.
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(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.
(5)rental,leasing,or licensing for use of tangible personal property
to any nonprofit primary health care facility,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.
(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)(Reserved)
Sec. 8A-455.Restaurants and Bars.
(a)The tax rate shall be at an amount equal to two percent (296)of the
gross income from the business activity upon every person engaging or
continuing in the business of preparing or serving food or beverage in a
bar, cocktail lounge, restaurant, or similar establishment where articles
of food or drink are prepared or served for consumption on or off the
•premises,including also the activity of catering..Cover charges and
minimum charges must be included in the gross income of this business
•activity.
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(b)Caterers and other taxpayers subject to the tax who deliver food and/or
serve such food off premises shall also be allowed to exclude separately
charged delivery,set-up,and clean-up charges,provided that the
charges are also maintained separately in the books and records.When
a taxpayer delivers food and/or serves such food off premises,his
regular business location shall still be deemed the location of the
transaction for the purposes of the tax imposed by this Section.
•(c)The tax imposed by this Section shall not apply to sales to any nonprofit
primary health care facility,except when sold for use in activities
resulting in gross income from unrelated business income as that term
is defined in 26 U.S.C. Section 512.
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(e)(Reserved)
(f)sales of prosthetics.
(g)sales of income -producing capital equipment.
(h)sales of rental equipment and rental supplies.
(0 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 Aricle I or II,Chapter 9,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 28-1559.
(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)(Reserved)
(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 (5096)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-445 or the equivalent excise tax upon such income.
(p)sales of tangible personal property to any nonprofit primary health care
facility, except when the property sold 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.
(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), but only to the
extent that food stamps or food instruments were actually used to
purchase such food.
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(b)Exclusion of certain sales of natural gas to a public utility.
Notwithstanding the provisions of subsection (a)above,the gross
income derived from the sale of natural gas to a public utility for the
purpose of generation of power to be transferred by the utility to its
ratepayers shall be considered a retail sale of tangible personal
property subject to Sections 8A-460 and 8A-465,and not considered
gross income taxable under this Section.
(c)Resale utility services.Sales of utility services to another provider of
the same utility services for the purpose of providing such utility
services either to another properly licensed utility provider or directly
to such purchaser's customers or ratepayers shall be exempt and
deductible from the gross income subject to the tax imposed by this
Section,provided that the purchaser is properly licensed by all
applicable taxing jurisdictions to engage or continue in the business of
providing utility services, and further provided that the seller maintains
proper documentation,in a manner similar to that for sales for resale,
of such transactions.
(d)Tax credit offset for franchise fees.There shall be allowed as an offset
any franchise fees paid to the City pursuant to the terms of a franchise
agreement, when such franchise fees are based on gross income realized
from utility services provided to a specified class of customers within
the City.However,such offset shall not be allowed against taxes
imposed by any other Section of this Chapter.Such offsets shall not be
deemed in conflict with or violation of subsection 8A -400(b).
(e)The tax imposed by this Section shall not apply to sales of utility
services to any nonprofit primary health care facility, except when sold
for use in activities resulting in gross income from unrelated business
income as that term is defined in 26 U.S.C. Section 512.
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(b)(Reserved)
(c)(Reserved)
(d)(Reserved)
(e)The Tax Collector may for good cause extend the date for making any
return required under the provisions of this Section as prescribed by
A.R.S.Section 42-116.
Sec. 8A-540.Interest and civil penalties.
Any taxpayer who shall have failed to timely pay any taxes imposed by this
Chapter, or file a report for the same in a timely manner, or fail or refuse to
allow examination of records by the Tax Collector,shall be subject to any
interest or civil penalties on such tax in like manner as such interest and
penalties are provided in A.R.S.Sections 42-134 and 42-136 for the State
Transaction Privilege Tax.
(a)(Reserved)
(b)(Reserved)
(c)(Reserved)
(d)(Reserved)
(e)(Reserved)
(f)(Reserved)
(g).(Reserved)
Sec. 8A-545.Deficiencies; when inaccurate return is filed; when no return is
filed; estimates.
(a)If a taxpayer has failed to file a return or if the Tax Collector is not
satisfied with the return or payment of tax required, the Tax Collector
may redetermine the tax due, plus penalties and interest, and notify the
taxpayer, as provided and prescribed by A.R.S. Sections 42-117 and 42-
118.
(1)(Reserved)
(2)(Reserved)
(b)Estimates by the Tax Collector.Any estimate made by the Tax
Collector is to be made on a reasonable basis.The existence of another
reasonable basis of estimation does not, in any way, invalidate the Tax
Collector's estimate.It is the responsibility of the taxpayer to prove
that the Tax Collector's estimate is not reasonable and correct,by
providing sufficient documentation of the type and form required by
this Chapter or satisfactory to the Tax Collector.
Sec. 8A-550.Limitation periods.
(a)Except as provided elsewhere in this Chapter,deficiency assessments
for the taxes imposed by this Chapter must be issued within the
limitation periods prescribed in A.R.S.Section 42-113,and must meet
the provisions of A.R.S.Section 42-117.
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(b)The taxes imposed by this Chapter are a lien on the property of any
person subject to this Chapter who sells his business or stock of goods,
or quits his business,if the person fails to make a final return and
payment of the tax within fifteen (15) days after selling or quitting his
business.
(c)Any person who purchases,or who acquires by foreclosure,by sale
under trust deed or warranty deed in lieu of foreclosure, or by any other
•method, improved real property or a portion of improved real property
for which the Privilege Tax imposed by this Chapter has not been paid
shall be responsible for payment of such tax as a speculative builder or
owner builder, as provided in Sections 8A-416 and 8A-417.
(d)A person's successors or assignees shall withhold from the purchase
money an amount sufficient to cover the taxes required to be paid, and
interest or penalties due and payable, until the former owner produces a
receipt from the Tax Collector showing that all City tax has been paid
or a certificate stating that no amount is due as then shown by the
records of the Tax Collector.The Tax Collector shall respond to a
request from the seller for a certificate within fifteen (15)days by
either providing the certificate or a written notice stating why the
certificate cannot be issued.
(1)If a subsequent audit shows a deficiency arising before the sale of
•the business, the deficiency is an obligation of the seller and does
not constitute a liability against a buyer who has received a
certificate from the Tax Collector.
(2)If the purchaser of a business or stock of goods fails to obtain a
certificate as provided by this Section, he is personally liable for
payment of the amount of taxes required to be paid by the former
owner on account of the business so purchased,with interest and
penalties accrued by the former owner or assignees.
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C
(
c.
Sec. 8A-600.(Reserved)
Sec. 8A-601.(Reserved)
Sec. 8A-602.(Reserved)
Sec. 8A-610.(Reserved)
Sec. 8A-620.(Reserved)
Sec. 8A-630.(Reserved)
Sec. 8A-640.(Reserved)
Sec. 8A-650.(Reserved)
Sec. 8A-660.(Reserved)
Article VI - (Reserved)
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fc_
REGULATIONS - PRIVILEGE AND EXCISE TAXES
Reg. 8A-100.1.Brokers
(a)For the purposes of proper administration of this Chapter and to
prevent evasion of taxes imposed, brokers shall be wherever necessary
treated as taxpayers for all purposes, and shall file a return and remit
the tax imposed on the activity on behalf of the principal.No
deduction shall be allowed for any commissions or fees retained by such
broker, except as provided in Section 8A-405, relating to advertising
commissions.
(b)Brokers for vendors.A broker acting for a seller,lessor,or other
similar person deriving gross income in a category upon which this
Chapter imposes a tax shall be liable for such tax, even if his principal
would not be subject to the tax if he conducted such activity in his own
behalf,by reason of the activity being deemed a "casual"one.For
example:
(1)An auctioneer or other sales agent of tangible personal property is
subject to the tax imposed upon retail sales,even if such sales
would be deemed "casual"if his principal had sold such items
himself.
(2)A property manager is subject to the tax imposed upon rental,
leasing, or licensing of real property, even if such rental, leasing,
or licensing would be deemed "casual"if his principal managed
such real property himself.
(c)Brokers for vendees.A broker acting solely for a buyer, lessee, tenant,
'or other similar person who is a party to a transaction which may be
subject to the tax, shall be liable for such tax and for filing a return in
connection with such tax only to the extent his principal is subject to
the tax.
(d)The liability of a broker does not relieve the principal of liability
except upon presentation to the Tax Collector of proof of payment of
the tax,and only to the extent of the correct payment.The broker
shall be relieved of the responsibility to file and pay taxes upon the
filing and correct payment of such taxes by the principal.
(e)(Reserved)
(f)Location of Business.Retail sales by brokers acting for another person
shall be deemed to have occurred at the regular business location of the
broker,in a manner similar to that used to determine "out -of -City
sales"; provided, however, that an auctioneer is deemed to be engaged
in business at the site of each auction.
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Reg. 8A-100.2.Delivery, installation, or other direct customer services.
(a)"Delivery Charges"exist only when the total charges to the ultimate
customer or consumer include,as separately charged to the ultimate
customer,charges for delivery to the ultimate consumer,whether the
place of delivery is within or without the City, and when the taxpayer's
books and records show the separate delivery charges.
(1)Identification to the customer or consumer that the listed price
has "delivery included" or other similar expression is insufficient
to show the delivery as a separate charge.Only the separately
stated charge for the delivery shall be deemed a "delivery
charge".
(2)Freight in.Charges for delivery from place of production or the
manufacturer to the vendor either directly or through a chain of
wholesalers or jobbers or other middlemen are deemed "freight-
in" and are not considered delivery.
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Reg. 8A-100.3.Retailers.
When in the opinion of the Tax Collector it is necessary for efficient
administration of this Chapter,he may regard any salesman,representative,
peddler,canvasser,or agent of any dealer,distributor,supervisor,or employer
under whom he operates or from whom he obtains tangible personal property for
sale,rental,lease,or license as a retailer for the purposes of this Chapter,
irrespective of whether he is making sales, rentals, leases, or licenses on his own
behalf or on behalf of others.The Tax Collector may also regard such dealer,
distributor, supervisor, or employer as a retailer for the purposes of this Chapter.
Reg. 8A-100.4.Out-of-City/Out-of-State Sales:Sales to Indians.
Sales to Indians or tribal councils by vendors located within the City shall be
deemed sales within the City, unless all of the following conditions exist:
(1)the vendor has properly accounted for such sales, in a manner similar to
the recordkeeping requirements for out -of -City sales; and
(2)all of the following elements of the sale exist:
(a)solicitation and placement of the order occurs on the reservation;
and
(b)delivery is made to the reservation; and
(c)payment originates from the reservation.
Reg. 8A-110.1.Income -producing capital equipment:in general.
(a)The term "income -producing capital equipment" applies only when the
purchaser or lessor is directly using, such equipment primarily for the
purpose of directly producing income in his normal course of business.
For example:
(1)Rental of a printing press to a job printer would qualify.Rental
of the same equipment to a trade school or an airline company
would not qualify.
(2)A lease of an electric generator rated at 75KV to an electric
utility company or a manufacturer or job printer would qualify.
The same lease to a telecommunications company or an irrigation
district would not qualify.
(b)Note the "two -pronged test" this definition requires:
(1)the purchaser or lessor must be engaged in a business that directly
uses the item to produce income; and
(2)the item is to be directly used in the production of income.
Ancillary equipment for backup power,removal of wastes,
storage,transport of materials,etc.do not qualify unless the
definition allows it for that specific business activity.
Reg. 8A-110.2.Income -producing capital equipment:manufacturing equipment;
job printing equipment.
•
(a)Manufacturing involves the change of tangible personal property into a
new form of tangible personal property.This may involve activities
often called "processing"or "fabricating",for example:making
•electronic parts in quantity,refining crude oil,pasteurizing milk,
fabricating a mobile home, producing syrup for soft drinks from other
ingredients.Therefore,there are four reasons why an activity is not
considered manufacturing, as follows, with examples.
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(1)The activity is specifically defined elsewhere in this Chapter.For
example:publishing;construction contracting; baking or cooking
food (defined as restaurant activity).
(2)The activity does not begin with a physical product ("raw
materials").For example:word processing;electronic data
processing;photography;video or sound recording by a recording
studio.
(3)The activity does not physically change the raw materials into
another form of tangible personal property.For example:sorting
or "screening"sand,gravel,or rock;picking cotton;stuffing
envelopes; chilling (but not freezing) water; cooling or heating air.
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(3)ancillary testing equipment of all kinds (for example,testing
equipment in the Quality Assurance area or in the stockroom).
(4)ancillary packaging equipment of all kinds (for example,
packaging equipment in the stockroom or mailroom).
(5)(Reserved)
(6)any structural changes to real property (for example, plumbing or
electrical changes to a structure, loading docks).
Reg. 8A-115.1.Computer hardware, software, and data services.
(a)Definitions.
(I)"Computer Hardware"(also called "computer equipment"or
"peripherals") is the components and accessories which constitute
the physical computer assembly,including but not limited to:
central processing unit, keyboard, console, monitor, memory unit,
disk drive,tape drive or reader,terminal,printer,plotter,
modem,document sorter,optical reader and/or digitizer,
network.
(2)"Computer Software"(also called "computer program") is tangible
personal property, and includes:
(A)"Operating Program (Software)"(also called "executive
program (software)"), which is the programming system or
technical language upon which or by means of which the
basic operating procedures of the computer are recorded.
The operating program serves as an interface with user
applied programs and allows the user to access the
computer's processing capabilities.
(B)"Applied Program (Software)",which is the programming
system or technical language (including the tape,disk,
cards,or other medium upon which such language or
program is recorded)designed either for application in a
specialized use, or upon which or by means of which a plan
for the solution of a particular problem is based.Typically,
applied programs can be transferred from one computer to
another via storage media.Examples of applied programs
include:payroll processing,general ledger,sales data,
spread
(3)"Storage Medium"is any hard disk,compact disk,floppy disk,
diskette,diskpack,magnetic tape,cards,or other medium used
for storage of information in a form readable by a computer, but
not including the memory of the computer itself.
(4)A "Terminal Arrangement"(also called "on-line' arrangement") is
any agreement allowing access to a remote central processing
unit through telecommunications via hardware.
(5)A "Computer Services Agreement"(also called "data services
agreement")is an agreement allowing access to a computer
through a third -party operator.
(b)For the purposes of this Chapter, transfer of title and possession of the
following are deemed sales of tangible personal property and any other
transfer of title,possession, or right to use for a consideration of the
following is deemed rental,leasing,or licensing of tangible personal
property:
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(4)Compiling and producing,as part of a terminal arrangement or
computer services agreement,original copies of statistical
reports,graphs,diagrams,microfilm,microfiche,
photorecordings,or other information for the same person who
supplied the raw data used to create such reports.
(f)(Reserved)
Reg. 8A-120.1.(Reserved)
Reg. 8A-200.1.When refundable deposits are includable in gross income.
(a)In General.Refundable deposits shall be includable as gross income of
the taxpayer for the month in which received, and will be allowed as
deductible refunds for the month in which actually paid back, unless the
taxpayer:
(1)maintains all such deposits in a separate investment or liability
account which is not subject to use or expenditure by the
taxpayer; and
(2)pays interest at at least one-half of one percent (1/2%) per month
from the date of deposit to the depositor,payable upon refund
which shall not be later than thirty (30)days subsequent to the
return of the equipment or other end of period of possession
•involved; and
(3)includes forfeited deposits in gross income at time of forfeiture.
(b)LoiVng."Security Deposits" and other refundable deposits relating to
lodging shall be includable as gross income of the taxpayer for the
month in which received, and will be allowed as refunds for the month
in which actually paid back, unless the taxpayer complies with both the
provisions of subsection (a)above and the provisions of the Arizona
Residential Landlord and Tenant Act,Chapter 10,Title 33,Arizona
Revised Statutes.If there is a conflict between these two provisions,
the more stringent of the two shall apply in that case.
Reg. 8A-250.1.Excess tax collected.
If a taxpayer collects taxes in excess of the combined tax from any customer in
any transaction,all such excess tax shall be paid to the taxing jurisdictions in
proportion to their effective rates.The right of the taxpayer to charge his
customer for his own liability for tax does not allow the taxpayer to enrich himself
at the cost of his customers.
Reg. 8A-270.1.Proprietary activities of municipalities are not considered
activities of a governmental entity.
The following activities,when performed by a municipality, are considered to be
activities of a person engaged in business for the purposes of this Chapter, and not
excludable by reason of Section 8A-270:
(a)rental,leasing,or licensing for use of real prciperty to other than
another department or agency of the municipality.
(b)producing,providing,or furnishing electricity, electric lights, current,
power, gas (natural or artificial), or water to consumers or ratepayers.
•(c)sale of tangible personal property to the public,when similar tangible
personal property is available for sale by other persons, as, for example,
at police or surplus auctions.
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•(2)He has or maintains within the City directly, or if a corporation
by a subsidiary,an office,distribution house,sales house,
warehouse or other place of business,or any agent or other
representative operating within this City under the authority of
such person or if a corporation its subsidiary,irrespective of
whether such place of business or agent or other representative is
located here permanently or temporarily or whether such person
or subsidiary is authorized or licensed to do business in this State
or this City.
(3)He is soliciting sales, orders, contracts,leases, and other similar
forms of business relationships,within the City from customers,
consumers,or users located within the City,by means of
salesmen,solicitors,agents,representatives,brokers,and other
similar agents or by means of catalogs or other advertising,
whether such orders are received or accepted within or without
this City.
(4)(Reserved)
(5)He is required to report and pay the tax upon Rental Occupancy
imposed by. Section 8A-440.
(b)(Reserved)
Reg. 8A-310.1.(Reserved)
Reg. 8A-310.2.(Reserved)
Reg. 8A-310.3.(Reserved)
Reg. 8A-350.1.Recordkeeping:income.
The minimum records required for persons having gross income subject to,or
exempt or excluded from, tax by this Chapter must show:
(a)the gross income of the taxpayer attributable to any activity occurring
in whole or in part in the City.
(b)the gross income taxable under this Chapter, divided into categories as
stated in the official City tax return.
(c)the gross income subject to Arizona Transaction Privilege Taxes,
divided into categories as stated in the official State tax return.
(d)the gross income claimed to be exempt,and with respect to each
activity or transaction so claimed:
(1)if the transaction is claimed to be exempt as a sale for resale or
as a sale, rental, lease, or license for use of rental equipment:
(A)the City Privilege License number and State Transaction
Privilege Tax License number of the customer (or the
equivalent city,if applicable,and state tax numbers of the
city and state where the customer resides), and
(B)the name,business address,and business activity of the
customer, and
(C)evidence sufficient to persuade a reasonably prudent
businessman that the transaction is believed to be in good
faith a purchase for resale, or a purchase,rental, lease, or
license for use of rental equipment,by the vendee in the
ordinary and regular course of his business activity,as
provided by Regulation.
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Reg. 8A-405.1.Local advertising examples.
For the purposes of illustration only,and not by way of limitation,the following
are provided as examples of local advertising subject to the tax:
(1)retail sales and rental establishments doing business within the
State when only one commonly designated business entity is
identified by name in the advertisement.
(2)financial institutions doing business within the State whether part
of a national chain or local business only.
(3)sales of real estate located within the State.
(4)health care facilities located within the State.
(5)hotels,motels,and apartments,whether a national chain or local
so long as the advertisement identifies any location within the
State.
(6)brokers doing business within the State whether stockbrokers, real
estate brokers, insurance brokers, etc.
(7)nonprofit organizations,which even though tax exempt,have an
office, whether national, local, or branch, within the State.
(8)political activity,except United States Presidential and Vice
Presidential candidates.
(9)restaurants or food service establishments which have one or
more branches, outlets, or franchises within the State even though
the local franchisee or licensee may not be responsible for the
placement of the advertisement.
(10)services provided by individuals or entities within the State such
as doctors,lawyers,architects,hairdressers,auto repair shops,
counseling services, utilities, contractors, auction houses, etc.
(11)coupons redeemable only at a single commonly designated
business entity within the State.
(12)theater, sports, and other entertainment events held at locations
within the State.
Reg. 8A-405.2.Advertising activity within the City.
(a)In General.Except as provided elsewhere in this regulation, a person
engaged in advertising activity shall be considered to be doing business
entirely within the City if all or a major portion of the dissemination
facilities such as broadcasting studios,printing plants,or distribution
centers are located within the City limits.Remote studios patched to
an in -City studio and subject to engineering modulation or control at
the in -City studio are considered studios doing business in the City.
(b)Billboards and other outdoor advertising companies shall be considered
to be doing business within the City to the extent they have billboards
or similar displays within the City.
(c)Publishers and distributors of newspaper and other periodicals shall be
subject to the tax upon advertising imposed by Section 8A-405 and such
tax shall be allocated in the manner prescribed by subsection (e)of
Section 8A-435.
Reg.8A-407.1.(Reserved)
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Reg. 8A-415.1.Distinction between the categories of construction
contracting.
For the purposes of this Chapter, transactions involving improvements to, or sales
of, real property are designated into one of the following categories,and these
categorizations shall apply,whether or not a person designates himself as a
contractor, construction manager, developer, or otherwise:
(a)A person performing improvements to real property is one of the
following:
(1)an "Owner -Builder"when the work is performed by the owner or
lessor or lessee -in -possession.An "owner -builder" may also be a
"speculative builder".
-R15.1-
Reg. 8A-435.2.Advertising income of publishers and distributors
of newspapers and other periodicals.
Publishers and distributors of newspapers and other periodicals shall be subject to
the tax upon advertising imposed by Section 8A-405 and such tax shall be allocated
in the manner prescribed by subsection (e) of Section 8A-435.
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Reg. 8A-445.1.(Reserved)
Reg. 8A-445.2.Rental, leasing, and licensing of real property as lodging:
refundable and non-refundable deposits.
(a)Nonrefundable deposits for cleaning, keys, pet fees, maintenance, or for
any other purpose are deemed gross income upon receipt.
(b)"Security deposits"and other refundable deposits are deemed gross
income at the time such deposits become forfeit, provided that they are
maintained in the manner required for security deposits both by
Regulation 8A-200.1 and by the Arizona Residential Landlord and
Tenant Act, Chapter 10, Title 33, Arizona Revised Statutes.If there is
a conflict between these two provisions, the more stringent of the two
shall apply in that case.Failure to comply with such provisions with
regard to refundable deposits makes such deposits gross income at the
time of receipt.
Reg. 8A-445.3.Rental, leasing, and licensing of real property as lodging:
room and board; furnished lodging.
(a)Room and board.
•(1)Rooming houses,lodges,or other establishments providing both
lodging and meals, shall maintain a record of the separate charges
made for the lodging and the meals.
(2)The charge for lodging shall be subject to the tax imposed by
Section 8A-445.The charge for meals is subject to the tax upon
restaurants and bars prescribed by Section 8A-455.
(b)Furnished lodging.A person who provides lodging with furnishings shall
be deemed to be only in the business of rental, leasing, and licensing of
lodging, and not in the business of rental, leasing, and licensing of such
furnishings as tangible personal property, unless:
(1)Any tenant of any lodging space may choose to rent,lease,or
license such lodging space either furnished or unfurnished; and
(2)The lessor separately charges tenants for lodging and for
furnishings; and
(3)The lessor separately maintains his gross income from lodging and
from furnishings separately in his accounting books and records.
If all of the above conditions are met,such person shall report both sources of
income separately to the City.
Reg. 8A-447.1.(Reserved)
Reg. 8A-450.1.Distinction between rental, leasing, and licensing for use of
tangible personal property and certain related activities.
(a)Certain rentals,leases,and licenses for use .in connection with
construction contracting.Rental, leasing, or licensing of earthmoving
equipment with an operator shall be deemed construction contracting
activity.Rental,leasing, or licensing of any other tangible personal
property (with or without an operator)or of earthmoving equipment
without an operator shall be deemed rental,leasing,or licensing of
tangible personal property.For example:
(1)Rental of a backhoe, bulldozer, or similar earthmoving equipment
with operator is construction contracting.Rental of these items
without an operator is rental of tangible personal property.
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(d)The term does not include mobile transportation equipment or tangible
personal property designed for regular use at different locations or
customarily used at different locations, as under numerous short-term
rental, lease, or license agreements, whether or not such property is in
fact so used.
(1)For example,use of a mobile crane,trencher,automobile,or
other similar equipment shall be considered a rental,lease,or
license transaction subject to taxation only by the city or town in
which such business office of the lessor is based.
(2)Other similar examples include,but are not limited to: camping
equipment, contracting equipment, chain saw,forklift, household
items,invalid needs,janitorial equipment,reducing equipment,
furniture of portable design,trucks or trailers,tools,towbars,
sump pumps, arc welders.
(e)A rental, lease, or license agreement which specifies that the item in
question shall remain, under the terms of the agreement, located within
the same city or town for more than one hundred eighty (180)
consecutive days. shall be sufficient evidence that such rented, leased,
or licensed item is "permanently or semi -permanently installed" in said
city or town, except when the item is mobile transportation equipment
or one of the other types of portable equipment or property described in
subsection (d) above.
Reg. 8A-450.5 Rental, leasing, and licensing for use of tangible personal property:
delivery, installation, repair, and maintenance charges.
(a)Delivery and installation charges in connection with the rental, leasing, and
licensing of tangible personal property are exempt from the tax imposed by
Section 8A-450;provided that the provisions of Regulation 8A-100.2 have
been met.
(b)Gross income from the sale of a warranty,maintenance,or similar service
contract in connection with the rental,leasing,and licensing of tangible
personal property shall be:
(1)Includable as gross income subject to the tax imposed by Section 8A-
450, regardless of whether such contract is optional with the customer.
(2)(Reserved)
(c)Separately stated charges for repair not included as part of a warranty,
maintenance, or similar service contract relating to the rental,leasing,or
licensing of tangible personal property are exempt from the tax imposed by
Section 8A-450; however, such income is subject to the provisions of Sections
8A-460 and 8A-465, and the provisions of Regulation 8A-465.1.
Reg. 8A-455.1.Gratuities related to restaurant activity.
Gratuities charged by or collected by persons subject to the tax imposed by Section
8A-455 may be excluded from gross income if:
(1)such charge is separately stated upon the bill,invoice,etc.
provided the customer,and such amounts are maintained
separately in the books and records of the taxpayer; and
(2)such gratuities are distributed in total to employees of the
taxpayer in addition to customary and regular wages.
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Reg. 8A-460.1.Distinction between retail sales and certain other transfers
of tangible personal property.
(a)Charges for transfer of tangible personal property included in the gross
income of the business activity of persons engaged in the following
business activities shall be deemed only as gross income from such
business activity and not sales at retail taxed by Section 8A-460:
(1)tangible personal property incorporated into real property as part
of reconstruction or construction contracting,per Sections 8A-
415 through 8A-418.
(2)Sales of feed at wholesale, per Section 8A-420.
(3)job printing, per Section 8A-425.
(4)mining,timbering,and other extraction,but not sales of sand,
gravel, or rock extracted from the ground, per Section 8A-430.
(5)publication of newspapers,magazines,and other periodicals,per
Section 8A-435.
(6)rental,leasing, and licensing of real or tangible personal property,
per Sections 8A-445 or 8A-450.
(7)restaurants and bars, per Section 8A-455.
(8)telecommunications services, per Section 8A-470.
(9)utility services, per Section 8A-480.
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(d)Restaurants are not retailers,and are taxed under Section 8A-455.
Paper (and similar products,such as plastic or styrofoam)cups,lids,
plates, bags, napkins, straws, knives, forks, etc., sold to restaurants and
others taxable under Section 8A-455 are taxable at the time of
purchase.
(e)Charges for returnable containers,where the charges are imposed on
the customer,are subject to tax at the time of the transaction.A
credit may be taken for the amount of refund after such refund is
made.
(f)The sale of labels to a purchaser who affixes them to a primary
container is a sale for resale and not taxable.Directional or
instructional material included with products sold are considered to be
part of the product and a sale for resale.However, the sale of items
such as price tags,shipping tags,and advertising matter delivered to
the customer in connection with the retail sale is taxable to the retailer
as a retail sale to it, and is not exempt as a sale for resale.
Reg. 8A-465.4.(Reserved)
Reg. 8A-470.1.Telecommunication services.
(a)Gross income from the business activity of providing
telecommunication services to consumers within this City shall not
include:
(1)charges for installation,maintenance,and repair of
telecommunication equipment which are subject to the provisions
of Sections 8A-415, 8A-416, or 8A-417 (construction contracting);
8A-445 (real property rental);8A-450 (tangible personal property
rental); or 8A-460 (retail sales); depending upon the nature of the
work performed.
(2)separately billed advertising charges which are subject to the
provisions of Section 8A-405 or 8A-435.
(b)Mobile equipment.In cases where the customer is being provided
telecommunication services to receiving/transmission equipment
designed to be mobile in nature (for example,mobile telephones,
portable hand-held two-way radios,paging devices,etc.),the provider
shall,for the purposes of the tax imposed by this Section,determine
whether such provider's customers are "within this City" as follows:
(I)by the billing address of the customer, provided that such address
is a permanent residence or business location of the consumer
within the State.
(2)in all other cases, the business location of the telecommunications
provider.
Reg. 8A-475.1.Distinction between transporting for hire and certain related
activities.
The hiring of mobile equipment (cranes,airplanes,limousines,etc.)is deemed
rental,leasing,or licensing for use of tangible personal property whenever the
charge is for a fixed sum or hourly rate.By comparison, the activity of a common
carrier conveying goods or persons for a fee based upon distance,and not time,
shall be considered transporting for hire.
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