HomeMy WebLinkAboutORD833ORDINANCE NO.833
AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE
JUNCTION,ARIZONA,RELATING TO THE PRIVILEGE LICENSE TAX;ADOPTING
"SUPPLEMENTARY LOCAL AUDIT PROCEDURES FOR THE CITY TAX CODE OF THE
CITY OF APACHE JUNCTION, ARIZONA"BY REFERENCE;REPEALING ARTICLE IV
-ADMINISTRATION OF THE CITY TAX CODE AND REGULATION 8A-555.1;
REPEALING ANY CONFLICTING PROVISIONS;PROVIDING FOR SEVERABILITY;
PROVIDING PENALTIES;AND ESTABLISHING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,
ARIZONA:
SECTION I IN GENERAL
A.That certain document known as "SUPPLEMENTARY LOCAL AUDIT PROCEDURES FOR
THE CITY TAX CODE OF THE CITY OF APACHE JUNCTION,ARIZONA,"three copies
of which are on file in the office of the City Clerk,which document was
made a public record by Resolution No.92-12 of the City of Apache
Junction,Arizona,is hereby referred to,adopted and made a part hereof
as i f fully set out in this ordinance.
B.That Article IV,Administration of the City Tax Code,and Regulation
8A-555.1 are hereby repealed.
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repealed.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
jurisdiction,such decision shall not affect the validity of the remaining
portions thereof.
SECTION IV PROVIDING PENALTIES
Any person found guilty of violating any provision of these amendments to the
City Tax Code shall be guilty of class one misdemeanor.Each day that a
violation continues shall be a separate offense punishable as herein above
described.
SECTION V EFFECTIVE DATE
The provisions of this ordinance and the amendments to the City Tax Code adopted
herein shall become effective on August 15,1992.
ORDINANCE NO.833
PAGE 1 OF 2
APPROVED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE
JUNCTION,ARIZONA,THIS 7TH DAY OF JULY ,1992.
SIGNED AND ATTESTED TO THIS 8TH DAY OF JULY ,1992.
)9sA.,CSVAA,)—C :euvw...4:1""As"
THOMAS DAMIANO
Mayor
ATTEST:
KATHLEEN CONNELLY
Apr 4 ,d ie___A4
City Clerk
APP FORM:
City Attorney
ORDINANCE NO.833
PAGE 2 OF 2
SUPPLEMENTARY LOCAL AUDIT PROCEDURES
FOR THE
CITY/TOWN TAX CODE
OF THE
CITY OF APACHE JUNCTION, ARIZONA
Article V - Administration
(NOTICE:Both the Department of Revenue and the city may perform audits of
local taxpayers.Although many of the administrative procedures are the same,
regardless of which entity is performing the audit, some differences will apply.To
Identify those differences, the words "STATE AUDITS" or "LOCAL AUDITS" appear
following the title of the section.If the section applies to audits performed by both
the state and the city, no notation appears.)
Sec. 8A-500.Administration of this Chapter; rule making.
(a)The administration of this Chapter is vested in and exercised by the City of Apache
Junction, and except as otherwise provided, and all payments shall be made to the City
of Apache Junction.The City may, pursuant to an intergovernmental agreement, contract
with the State of Arizona Department of Revenue for the administration of the tax.In
such cases, "Tax Collector" shall also mean the Arizona Department of Revenue, when
acting as agent In administering this tax.
(b)The Tax Collector shall prescribe the forms and procedures necessary for the
administration of the taxes imposed by this Chapter.
(c)Except where such Regulations would conflict with administrative regulations adopted by
the City Council or with provisions of this Chapter,all regulations on the Transaction
Privilege Tax adopted by the Arizona Department of Revenue under the authority of
A.R.S. Section 42-105 shall be considered Regulations of this Chapter and enforceable
as such.
Sec. 8A-510.Divulging of information prohibited; exceptions allowing disclosure.
(a)Except as specifically provided, it shall be unlawful for any official or employee of the City
to make known information obtained pursuant to this Chapter concerning the business
financial affairs or operations of any person.
(b)The City Council may authorize an examination of any return or audit of a specific
taxpayer made pursuant to this Chapter by authorized agents of the Federal Government,
the State of Arizona, or any political subdivisions.
(c)The Tax Collector may provide to an Arizona county,city,or town any information
concerning any taxes imposed in this Chapter relative to the taxing ordinances of that
county, city, or town.
(d)Successors,receivers,trustees,personal representatives,executors,guardians,
administrators, and assignees, if directly interested, may be given information by the Tax
Collector as to the items included in the measure and amounts of any unpaid tax,
interest, and penalties required to be paid.
(e)Upon a written direction by the City Attorney or other legal advisor to the City designated
by the City Council, officials or employees of the City may divulge the amount and source
of income,profits,leases,or expenditures disclosed in any return or report,and the
amount of such delinquent and unpaid tax,penalty,or interest, to a private collection
agency having a written collection agreement with the City.
30
(f)The Tax Collector may provide information to appropriate representatives of any Arizona
city or town to comply with the provisions of A.R.S. Section 42-1452 relating to the
assessment and collection of intermunicipal taxes.
The Tax Collector may provide Information to authorized agents of any other Arizona
governmental agency involving the allocation of taxes imposed by Section 8A-435 upon
publishing and distribution of periodicals.
(h)The Tax Collector may provide information regarding the enforcement and collection of
taxes imposed by this Chapter to any governmental agency with which the City has an
agreement.
(g)
Sec. 8A-520.Reporting and payment of tax.
(a)The taxpayer shall be required to use the report form authorized by the Tax Collector and
shall mail or deliver the same,together with remittance for the amount of tax due,
payable to the City of Apache Junction, to the Tax Collector or any City representative or
agent authorized to receive such payment.The tax return shall be signed by the
taxpayer or his authorized agent, and such signature shall be evidence that the person
signing the return verifies the accuracy of the information supplied in the return.
(b)Payment.If payment is made in any form other than United States legal tender,the tax
obligation shall not be satisfied until the payment has been honored in funds.
(c)Requirement of Security.If a taxpayer has remitted payment in the form of a check or
other form of draw upon a bank or third party and such remittance has not been honored
in funds, the Tax Collector may demand security for future payments.
(d)Method of Reporting.Each taxpayer shall elect to report on either a cash receipts basis
or an accrual basis and shall Indicate the choice on the Privilege License application.A
taxpayer shall not change his reporting method without receiving prior written approval by
the Tax Collector.
(1)Taxpayers must report all gross income subject to the tax using the same basis of
reporting.
(2)Taxes imposed upon construction contracting shall be reported as follows:
(A)Construction contractors shall report on either a progressive billing ("accrual")
basis or cash receipts basis.
(B)Speculative builders shall report the gross income derived from sale of
Improved real property at close of escrow or at transfer of title or possession,
whichever occurs earlier.
(C)Owner -builders who are not speculative builders shall report taxable amounts
as provided in Section 8A-417.
Sec. 8A-530.When tax due; when delinquent; verification of return; extensions.
(a)Except as otherwise specified in this Section, the taxes levied under this Chapter shall be
due, payable, and delinquent on the dates specified for the State Transaction Privilege
Taxes in A.R.S. Section 42-1322. The taxpayer shall report on the taxes imposed by this
Chapter at such frequency to be identical to the taxpayer's reporting frequency for the
reporting of State Transaction Privilege Taxes.
(b)(Reserved)
(c)(Reserved)
31
(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 flied;
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.
(b)(Reserved)
(c)In cases of failure to file a return or a false or fraudulent return, the limitation period shall
be as prescribed in A.R.S. Section 42-118.
32
(d)Smolai provisions relating to owner -builders.The limitation for an owner -builder subject
to the tax as prescribed in Section 8A-417 shall be based upon the date such tax
liability Is reportable or was reported, as provided in Section. 8A-417.
Sec. 8A-555.Tax Collector may examine books and other records;failure to provide
records.
(a)The Tax Collector may require the taxpayer to provide and may examine any books,
records, or other documents of any person who, in the opinion of the Tax Collector, might
be liable for any tax under this Chapter, for any periods available to him under Section
8A-550.
(b)(Reserved)
(c)(Reserved)
(d)The Tax Collector may use any generally accepted auditing procedures,including
sampling techniques,to determine the correct tax liability of any taxpayer.The only
responsibility of the Tax Collector is that the procedures used are in accordance with
generally accepted auditing standards.The taxpayer must prove by clear and convincing
evidence that the methods chosen do not comply with generally accepted auditing
standards.
(e)The fact that the taxpayer has not maintained or provided such books and records which
the Tax Collector considers necessary to determine the tax liability of any person does
not preclude the Tax Collector from making any assessment.In such cases, the Tax
Collector is authorized to use estimates,projections,or samplings,to determine the
correct tax.The provisions of Section 8A -545(b), concerning estimates, shall apply.
(f)(Reserved)
Sec. 8A-560.Erroneous payment of tax; credits and refunds; limitations.
(a)Except as provided in Section 8A-565, the period within which a claim for credit may be
filed,or refund allowed or made if no claim Is filed,shall be as provided in
A.R.S. Sections 42-115 and 42-129.
• (b)(Reserved)
(c)(Reserved)
(d)(Reserved)
(e)(Reserved)
(f)The denial of a refund by the Tax Collector is subject to the provisions of
A.R.S. Section 42-130.
(g)Any refund paid under the provisions of this Section shall be paid from the Privilege Tax
revenue accounts.
33
Sec. 8A-565.Payment of tax to the incorrect Arizona city or town.
(a)When it is determined that taxes have been reported and paid to the wrong Arizona city
or town, a refund or assessment shall be made to the correct city or town.The refund
or assessment period shall be limited to the forty-eight (48) month period prior to the date
the City receives or gives written request of the taxes due.The City shall neither pay
nor charge any interest or penalty on any overpayment or underpayment except such
Interest and penalty actually paid by the taxpayer relating to such tax.
(b)The limitations and procedures set forth in A.R.S. Section 42-1452 shall apply to all
payments under this Section.
(c)When reference is made in this Section to an Arizona city or town, and payments made
to or requested from such city or town, the provisions shall be applicable to the Arizona
Department of Revenue when it is acting for or on behalf of an Arizona city or town.
Sec. 8A-567.Allocation of tax on retail sales when more than one Arizona city or town
has nexus.
(a)In cases of retail sales where the tangible personal property sold was delivered from
stock located at a point without the state of Arizona, the tax imposed upon the retail sale
In question shall be shared equally between this City and the other city or town involved;
provided that the tangible personal property is not "mobile equipment" and either:
(1)transfer of title and possession occurred within the City, but the order was received
at a permanent business location of the seller located in another Arizona city or
town that imposes an equivalent excise tax upon the transaction; or
(2)transfer of title and possession occurred in another Arizona city or town that
imposes an equivalent excise tax upon the transaction, but the order was received
at a permanent business location of the seller located within the City.
(b)"Mobile Equipment,"for the purposes of subsection (a) above, includes any automobile,
bicycle, motorcycle, truck, aircraft, boat, tractor, forklift, or any other equipment that can
move under its own power or is designed as a method of transportation.
(c)"Shared Equally,"for the purposes of subsection (a) above, shall mean:
(1)in cases where tax was collected as a separate charge from the customer, that
each city or town shall have the right to half of the actual tax collected, even if the
rate at which such tax was collected differs from the appropriate tax rate of either
city.
(2)In cases where the tax was not separately charged to the customer but was
reported and paid to one of the cities or towns in question, that each city or town
shall have the right to half of the actual tax so paid, even if the rate at which such
tax was reported and paid differs from the appropriate tax rate of either city.
(3)in all other cases, each city or town shall have the right to half of the tax liability
on such a sale, to be determined by the tax rate of the city or town of the seller's
permanent business location.
(d)Claim, payment, and collection of taxes allocated between Arizona cities and towns by
the provisions of this Section shall be made in the same manner as provided in Section
8A-565 relating to tax paid to the incorrect city or town.
34
Sec. 8A-570.Administrative review; petition for hearing or for redetermination; hearing
or redetermination; finality of order.(STATE AUDITS)
(a)Closing agreements between the Tax Collector and a taxpayer have no force of law
unless made in accordance with the provisions of A.R.S. Section 42-123.
(b)Payment of tax under protest.Payment under protest of tax, penalty or interest due or
assessed under this Chapter shall be deemed as normal, unprotested payment of such
unless the provisions of A.R.S. Section 42-126 have been met.
(c)Administrative review.
(1)Petitions of appeal shall be made to,and hearings shall be conducted by,the
Arizona Department of Revenue,in accordance with the provisions of
A.R.S. Section 42-122, as modified by Section 8A-571.
(2)(Reserved)
(3)(Reserved)
(4)(Reserved)
(5)Hearings shall be held by the Arizona Department of Revenue in accordance with
the provisions of A.R.S. Section 42-122.The Department's decision may be
appealed to the State Board of Tax Appeals, in accordance with the provisions of
A.R.S. Section 42-124.
(6)(Reserved)
(7)(Reserved)
(d)(Reserved)
(e)(Reserved)
Sec. 8A-570.Administrative review; petition for hearing or for redetermination; hearing
or redetermination; finality of order.(LOCAL AUDITS)
(a)Informal Conference.A taxpayer shall have the right to discuss any proposed
assessment with the auditor prior to the issuance of any assessment,but any such
informal conference is not required for the taxpayer to file a petition for administrative
review.
(b)Payment of tax under protest.Any payment of tax under protest not made in accordance
with the provisions of this Section shall have no force or effect, and,if made,will be
accepted by the Tax Collector and credited to the taxpayer as though not made under
protest.
(c)Administrative Review.
(1)Filing a Petition.Other than In the case of a jeopardy assessment, a taxpayer may
contest the applicability or amount of any tax, penalty, or interest imposed upon or
paid by him pursuant to this Chapter by filing a petition for a hearing or for
redetermination with the Tax Collector as set forth below:
(A)within forty-five (45)days of receipt by the taxpayer of notice of a
determination by the Tax Collector that a tax, penalty, or interest amount is
due, or that a request for refund or credit has been denied; or
(B)by voluntary payment of any contested amount when accompanied by a
timely filed return and a petition requesting a refund of the protested portion
of said payment; or
(C)by petition accompanying a timely filed return contesting an amount reported
but not paid; or
(D)by petition requesting review of denial of waiver of penalty as provided in
subsection 8A -540(f).
35
(2)Extension to file a petition.In all cases, the taxpayer may request only one (1)
extension from the Tax Collector.Such request must be In writing,state the
reasons for the requested delay and time of delay requested,and must be filed
with the Tax Collector within the period allowed above for originally filing a petition.
The Tax Collector shall allow such extension to file a petition, when such written
request has been properly and timely made by the taxpayer, but such extension
shall not exceed forty-five (45) days beyond the time provided for originally filing a
petition.
(3)Requirements for petition.
(A)The petition shall be In writing and shall set forth the reasons why any
correction,abatement,or refund should be granted,and the amount of
reduction or refund requested.The petition may be amended at any time
prior to the time the taxpayer rests his case at the hearing or such time as
the Hearing Officer allows for submitting of amendments in cases of
redeterminations without hearings.The Hearing Officer may require that
amendments be in writing, and in that case, he shall provide a reasonable
period of time to file the amendment.The Hearing Officer shall provide a
reasonable period of time for the Tax Collector to review and respond to the
petition and to any written amendments.
(B)The taxpayer, as part of the petition, may request a hearing which shall be
granted by the Hearing Officer.If no request for hearing is made the petition
shall be considered to be submitted for decision by the Hearing Officer on
the matters contained in the petition and in any reply made by the Tax
Collector.
(C)The provisions of this Section are exclusive,and no petition seeking any
correction, abatement,or refund shall be considered unless the petition is
timely and properly filed under this Section.
(4)Transmittal to Hearing Officer.The City of Apache Junction shall designate a
Hearing Officer,who may be other than an employee of the city.The Tax
Collector, if designated to receive petitions, shall forward any petition to the Hearing
Officer within ten (10)days after receipt,accompanied by documentation as to
timeliness.In cases where the Hearing Officer determines that the petition is not
timely or not In proper form,he shall notify both the taxpayer and the Tax
Collector; and in cases of petitions not in proper form only,the Hearing Officer
may, at his discretion, provide the taxpayer with an extension up to forty-five (45)
days to correct the petition.
(5)Hearings shall be conducted by a Hearing Officer and shall be continuous until the
Hearing Officer closes the record.The taxpayer may be heard in person or by his
authorized representative at such hearing.Hearings shall be conducted informally
as to the order of proceeding and presentation of evidence.The Hearing Officer
shall admit evidence over hearsay objections where the offered evidence has
substantial probative value and reliability.Further,copies of records and
documents prepared In the ordinary course of business may be admitted, without
objection as to foundation, but subject to argument as to weight, admissibility, and
authenticity.Summary accounting records may be admitted subject to satisfactory
proof of the reliability of the summaries.In all cases, the decision of the Hearing
Officer shall be made solely upon substantial and reliable evidence.All expenses
incurred in the hearing shall be paid by the party incurring the same.
(6)Redetermination s upon a "petition for redetermination"shall follow the same
conditions, except that no oral hearing shall be held.
(7)Hearing Ruling.In either case, the Hearing Officer shall issue his ruling not later
than forty-five (45) days after the close of the record by the Hearing Officer.
(d)Stipulations that future tax is also protested.A taxpayer may enter into a stipulation with
the Tax Collector that future taxes of similar nature are also at issue in any protest or
appeal.However,unless such stipulation is made,it is presumed that the protest or
appeal deals solely and exclusively with the tax specifically protested and no other. When
36
a taxpayer enters into such a stipulation with the Tax Collector that future taxes of similar
nature will be included in any redetermination, hearing, or court case, it is the burden of
that taxpayer to identify, segregate, and keep record of such income or protested taxable
amount in his books and records in the same manner as the taxpayer is required to
segregate exempt income.Failure to do so shall be considered a waiver by the taxpayer
of such stipulation.
(e)When an assessment is final.
(1)If a request for administrative review and petition for hearing or redetermination of
an assessment made by the Tax Collector is not filed within the period required by
subsection (c)above,such person shall be deemed to have waived and
abandoned the right to question the amount determined to be due and any tax,
Interest,or penalty determined to be due shall be final as provided in
subsections 8A -545(a) and 8A -555(f).
(2)The decision made by the Hearing Officer upon administrative review by hearing or
redetermination shall become final thirty (30) days after notice by the Tax Collector
of any refund, abatement,or assessment amount recalculated to conform to the
Hearing Officer's decision has been received by the petitioner, unless the petitioner
appeals the order or decision in the manner provided in Section 8A-575.Any tax
due shall be paid within thirty (30) days after such notice either unconditionally or
under protest as part of an appeal procedure for judicial review.
Sec. 8A-571.Jeopardy assessments.(STATE AUDITS)
(a)If the Tax Collector believes that collection of any amounts imposed by this Chapter will
be jeopardized by delay, he shall issue notice to the taxpayer in accordance with the
provisions of A.R.S. Section 42-120.
(b)In cases where such jeopardy notice has been issued,the taxpayer must meet the
provisions of A.R.S. Section 42-120, concerning appeals of jeopardy assessments, before
any request for administrative review shall be honored.Any bond or collateral that may
be required shall meet the provisions of A.R.S. Section 42-112.
(c)(Reserved)
(d)(Reserved)
(e)(Reserved)
Sec. 8A-571.Jeopardy assessments.(LOCAL AUDITS)
(a)If the Tax Collector believes that the collection of any assessment or deficiency of any
amounts imposed by this Chapter will be jeopardized by delay, he shall deliver to the
taxpayer a notice of such finding and demand immediate payment of the tax or deficiency
declared to be in jeopardy, including interest, penalties, and additions.
(b)Jeopardy assessments are immediately due and payable,and the Tax Collector may
immediately begin proceedings for collection.The taxpayer, however, may stay collection
by filing, within ten (10)days after receipt of notice of jeopardy assessment, or within
such additional time as the Tax Collector may allow, by bond or collateral in favor of the
City In the amount Tax Collector declared to be in jeopardy in his notice.
37
(c)"Bond or Collateral",as required by this Section,
(1)shall mean either:
(A)a bond issued in favor of the City by a surety company authorized to
transact business in this State and approved by the Director of Insurance as
to solvency and responsibility, or
(B)collateral composed of securities or cash which are deposited with, and kept
in the custody of, the Tax Collector.
(2)shall be of such form that it may, at any time without notice, be applied to any tax,
penalties, or interest due and payable for the purposes of this Chapter.Securities
held as collateral by the Tax Collector must be of a nature that they may be sold
at public or private sale without notice to the taxpayer.
(d)If bond or collateral is not filed within the period prescribed by subsection (b) above, the
tax collector may treat the assessment as final for purposes of any collection
proceedings.The taxpayer nevertheless shall be afforded the appeal rights provided in
Sections 8A-570 and 8A-575.The filing of a petition by the taxpayer under Section 8A-
570,however,shall not stay the tax collector's rights to pursue any collection
proceedings.
(e)If the taxpayer timely files sufficient bond or collateral,the jeopardy requirements are
deemed satisfied, and the taxpayer may avail himself of the provisions of Section 8A-570,
including requests for additional time to file a petition.
Sec. 8A-575.Judicial review.(STATE AUDITS)
(a)Appeal of a State Board of Tax Appeals decision to the courts is valid only if all the
provisions of A.R.S. Section 42-124 are met.
(b)(Reserved)
(c)(Reserved)
(d)(Reserved)
(e)The issuance of an adjusted or corrected assessment or notice of refund due to the
taxpayer,where made by the Tax Collector pursuant to the decision of the Hearing
Officer, shall not be deemed an acquiescence by the city or the Tax Collector in said
decision,nor shall it constitute a bar or estoppel to the institution of an action or
counterclaim by the city to recover any amounts claimed to be due to it by virtue of the
original assessment.
(f)After the initiation of any action in the appropriate court by either party, the opposite party
may file such counterclaim as would be allowed pursuant to the Arizona Rules of Civil
Procedure.
Sec. 8A-575.Judicial review.(LOCAL AUDITS)
(a)A taxpayer, after payment of any tax, penalty, or interest upheld by the Hearing Officer,
may bring action against the city in the appropriate Court for recovery of the payment.
(b)The Tax Collector may seek judicial review of all or any part of a Hearing Officer's
decision by initiating an action in the appropriate Court.
37.1
(c)An action for judicial review shall not be commenced more than thirty (30) days after
receipt of notice by the taxpayer of any refund or assessment recalculated or reduced to
conform to the Hearing Officer's decision.Failure to bring the action within thirty (30)
days shall constitute a waiver of any right to judicial review,except as provided in
subsection (f) below.
(d)The court shall consider only those grounds and issues set forth in the petition filed under
subsection 8A -570(c), or amendments allowed by the Hearing Officer during the review
process and prior to the issuance of his ruling.
(e)The issuance of an adjusted or corrected assessment or notice of refund due to the
taxpayer,where made by the Tax Collector pursuant to the decision of the Hearing
Officer, shall not be deemed an acquiescence by the city or the Tax Collector in said
decision,nor shall it constitute a bar or estoppel to the institution of an action or
counterclaim by the city to recover any amounts claimed to be due to it by virtue of the
original assessment.
(f)After the initiation of any action in the appropriate court by either party, the opposite party
may file such counterclaim as would be allowed pursuant to the Arizona Rules of Civil
Procedure.
Sec. 8A-577.(Reserved)
Sec. 8A-580.Criminal penalties.
(a)It is
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
unlawful for any person to knowingly or willfully:
fail or refuse to make any return required by this Chapter.
fail to remit as and when due the full amount of any tax or additional tax or penalty
and interest thereon.
make or cause to be made a false or fraudulent return.
make or cause to be made a false or fraudulent statement in a return, in written
support of a return,or to demonstrate or support entitlement to a deduction,
exclusion,or credit or to entitle the person to an allocation or apportionment or
receipts subject to tax.
fail or refuse to permit any lawful examination of any book,account,record,or
other memorandum by the Tax Collector.
fail or refuse to remit any tax collected by such person from his customer to the
Tax Collector before the delinquency date next following such collection.
advertise or hold out to the public in any manner, directly or indirectly, that any tax
imposed by this Chapter,as provided in this Chapter,is not considered as an
element in the price to the consumer.
fail or refuse to obtain a Privilege License or to aid or abet another in any attempt
to intentionally refuse to obtain such a license or evade the license fee.
reproduce, forge, falsify, fraudulently obtain or secure, or aid or abet another in any
attempt to reproduce, forge, falsify, or fraudulently obtain or secure, an exemption
from taxes imposed by this Chapter.
(b)The violation of any provision of subsection (a)above shall constitute a
Misdemeanor.
(c)In addition to the foregoing penalties, any person who shall knowingly swear
any false or fraudulent statement, with the intent aforesaid, shall be guilty of
of perjury and on conviction thereof shall be punished in the manner provided
Class One
to or verify
the offense
by law.
37.2
Sec. 8A-590.Civil actions.(STATE AUDITS)
(a)Liens.
(1)Any tax, penalty, or interest imposed under this Chapter which has become final,
as provided in this Chapter, shall become a lien when the city perfects a notice
and claim of lien setting forth the name of the taxpayer, the amount of the tax,
penalty,and interest,the period or periods for which due,the date of accrual
thereof and stating that the city claims a lien therefor.
(2)The notice of claim of lien shall be signed by the Tax Collector under his official
seal or the official seal of the city,and,with respect to real property,shall be
recorded in the office of the County Recorder of any county in which the taxpayer
owns real property, and, with respect to personal property shall be filed in the office
of the Secretary of State. After the notice and claim of lien is recorded or filed, the
taxes, penalties, and interest in the amounts specified therein shall be a lien on all
real property of the taxpayer located in such county where recorded,and all
tangible personal property of the taxpayer within the State,superior to all other
liens and assessments recorded or filed subsequent to the recording or filing of the
notice and claim of lien.
(3)Every tax imposed by this Chapter,and all increases,interest,and penalties
thereon, shall become from the time the same is due and payable a personal debt
from the person liable to the city, but shall be payable to and recoverable by the
Tax Collector and which may be collected in the manner set forth in subsection (b)
below.
(4)Any lien perfected pursuant to this Section shall,upon payment of the taxes,
penalties, and interest affected thereby,be released by the Tax Collector in the
same manner as mortgages and judgments are released.The Tax Collector may,
at his sole discretion, release a lien in part, that is, against only specified property,
for partial payment of moneys due the city.
(b)Actions to recover tax.The Arizona Department of Revenue,or any agent or
representative authorized by that Department, may bring action,in the name of the city,
to recover taxes as provided in A.R.S. Section 42-125.
Sec. 8A-590.Civil actions.(LOCAL AUDITS)
(a)Liens.
(1)Any tax, penalty, or interest imposed under this Chapter which has become final,
as provided in this Chapter, shall become a lien when the city perfects a notice
and claim of lien setting forth the name of the taxpayer, the amount of the tax,
penalty,and interest,the period or periods for which due,the date of accrual
thereof and stating that the city claims a lien therefor.
(2)The notice of claim of lien shall be signed by the City Attorney under his official
seal or the official seal of the city,and,with respect to real property,shall be
recorded in the office of the County Recorder of any county in which the taxpayer
owns real property, and, with respect to personal property shall be filed in the office
of the Secretary of State.After the notice and claim of lien is recorded or filed, the
taxes, penalties, and interest in the amounts specified therein shall be a lien on all
real property of the taxpayer located in such county where recorded,and all
tangible personal property of the taxpayer within the State,superior to all other
liens and assessments recorded or filed subsequent to the recording or filing of the
notice and claim of lien.
(3)Every tax imposed by this Chapter,and all increases,interest,and penalties
thereon, shall become from the time the same is due and payable a personal debt
from the person liable to the city, but shall be payable to and recoverable by the
Tax Collector and which may be collected in the manner set forth in subsection (b)
below.
37.3
(4)Any lien perfected pursuant to this Section shall,upon payment of the taxes,
penalties,and interest affected thereby,be released by the Tax Collector in the
same manner as mortgages and judgments are released.The Tax Collector may,
at his sole discretion, release a lien in part, that is, against only specified property,
for partial payment of moneys due the city.
(b)Actions to recover tax.An action may be brought by the City Attorney or other legal
advisor to the city designated by the City Council, at the request of the Tax Collector, in
the name of the city, to recover the amount of any taxes, penalties, and interest due
under this Chapter; provided that:
(1)no action or proceeding may be taken or commenced to collect any taxes levied by
this Chapter until the amount thereof has been established by assessment,
correction, or reassessment; and
(2)such collection effort is made or the proceedings begun:
(A)within six (6) years after the assessment of the tax; or
(B)prior to the expiration of any period of collection agreed upon in writing by
the Tax Collector and the taxpayer before the expiration of such six (6) year
period, or any extensions thereof; or
(C)at any time for the collection of tax arising by reason of a tax lien perfected,
recorded, or possessed by the city under this Section.
Sec. 8A-595.Collection of taxes when there Is succession in and/or cessation of
business.
(a)In addition to any remedy provided elsewhere in this City Code that may apply, the Tax
Collector may apply the provisions of subsections (b) through (d)below concerning the
collection of taxes when there is succession in and/or cessation of business.
(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.
37.4
Reg. 8A-555.1.(Reserved)(STATE AUDITS)
Reg. 8A-555.1.Administrative Request for the attendance of witnesses or the
production of documents; service thereof; remedies and penalties for failure to respond.
(LOCAL AUDITS)
(a)If a taxpayer refuses or fails to comply
records authorized by Section 8A-555,
Administrative Request which shall:
(1)designate the Individual to provide In
(2)describe specifically or generally
documents sought to be examined.
state the date, time, and place in which the individual shall appear before the Tax
Collector to provide the information and to produce the documents sought.
be directed to:
(A)any director, officer, employee, agent, or representative of the person sought
to be examined; or
(B)any independent accountant, accounting firm, bookkeeping or financial service
retained or employed by such person for any purpose connected with
business activity subject to taxation; or
(C)any other person who, in the opinion of the Tax Collector, has knowledge of
facts bearing upon any tax liability of the person or taxpayer from whom
information is sought.
(b)The failure of a taxpayer to comply with reasonable requests for records without good
reason or cause may,in the exercise of judicial discretion by a court,be held to
constitute a failure to exhaust administrative remedies.
(3)
(4)
in whole or in part with a request to provide
the Tax Collector may issue his written
formation.
the information to be provided,and any
Reg. 8A-571.1.Collection of tax In Jeopardy.
Evidence that collection of tax due is in jeopardy shall include documentation that:
(a)
(b)
.(c)
(d)
(e)
the taxpayer is going out of business.
the taxpayer has no City Privilege License or has no permanent business location in the
State.
the taxpayer has failed to timely pay any tax (or penalties and interest thereon) due to
the City on three (3)or more occasions within the previous thirty-six (36)calendar
months.
the taxpayer has remitted payment by check, which has been dishonored.
the taxpayer has failed to comply with a formal written request of the Tax Collector made
pursuant to Regulation 8A-555.1.
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