HomeMy WebLinkAboutORD924ORDINANCE NO.924
AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,
ARIZONA,RELATING TO THE PRIVILEGE LICENSE TAX; ADOPTING "THE 1995 AMENDMENTS TO
THE CITY TAX CODE OF THE CITY OF APACHE JUNCTION,ARIZONA"BY REFERENCE;
ESTABLISHING EFFECTIVE DATES;PROVIDING PENALTIES FOR VIOLATIONS; AND PROVIDING
FOR SEVERABILITY.
BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,
ARIZONA:
SECTION I IN GENERAL
That certain document known as "The 1995 Amendments to 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 of the City of Apache Junction, Arizona, which document
was made a public record by Resolution No.95-03 of the City of Apache Junction,
Arizona,is hereby referred to,adopted and made a part hereof as if fully set
out in this ordinance.
SECTION I I PROVIDING EFFECTIVE DATES
The provisions of this ordinance and the public record adopted herein are
effective from and after April 1,1995, with the exception of the deletion of the
definition of manufaturing in Section 1:Section 2:Section 14:subsection Cu)
of Section 15;Section 18;Section 19 and Section 27 which shall be effective
from and after June 30,1995.
SECTION III PROVIDING FOR PENALTIES
Any person found guilty of violating any provisions of these amendments to the
tax code shall be guilty of a class one misdemeanor.Each day that a violation
continues shall be a separate offense punishable as herein above described.
SECTION IV PROVIDING FOR SEVERABILITY
If any section,subsection, sentence, clause, phrase or portion of this ordinance
or any part of these amendments to the tax 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 validay of
the remaining portions hereof.
APPROVED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE
JUNCTION,ARIZONA,THIS 7th DAY OF February ,1995.
SIGNED AND ATTESTED TO THIS 8th DAY OF February ,1995.
ORDINANCE NO.924
PAGE 1 OF 2
ATTEST:
KATHLEEN CONNELLY
City Clerk
ORDINANCE NO.924
PAGE 2 OF 2
THE 1995 AMENDMENTS TO THE CITY TAX CODE
OF THE CITY OF APACHE JUNCTION, ARIZONA
Section 1.Section 8A-100 of the Apache Junction City Tax Code is amended to read:
Sec. 8A-100.General definitions.
For the purposes of this Chapter, the following definitions apply:
"Assembler'means a person who unites or combines products, wares, or articles of manufacture
so as to produce a change in. form or substance of such items without changing or altering
component parts..
"Broker"means any person engaged or continuing in business who acts for another for a
consideration in the conduct of a business activity taxable under this Chapter, and who receives
•for his principal all or part of the gross income from the taxable activity.
"Business"means all activities or acts, personal or corporate, engaged in and caused to be
engaged in with the object of gain, benefit, or advantage, either direct or indirect, but not casual
activities or sales.•
"Business Day"means any day of the week when the Tax Collector's office is open for the public
to conduct the Tax Collector's business.
"Casual Activity or Sale"means a transaction of an isolated nature made by a person who neither
represents himself to be nor is engaged in a business subject to a tax imposed by this Chapter.
However, no sale, rental, license for use, or lease transaction concerning real property nor any
activity entered into by a business taxable by this Chapter shall be treated, or be exempt, as
casual.This definition shall include sales of used capital assets, provided that the volume and
frequency of such sales do not indicate that the seller regularly engages in selling such property.
"Combined Taxes"means the sum of all applicable Arizona Transaction Privilege and Use Taxes;
all applicable transportation taxes imposed upon gross income by this County as authorized by
Chapter 8.3, Title 42, Arizona Revised Statutes; and all applicable taxes imposed by this Chapter.
"COMMERCIAL PROPERTY"IS ANY REAL PROPERTY, OR PORTION OF SUCH PROPERTY,
USED FOR ANY PURPOSE OTHER THAN LODGING OR LODGING SPACE,INCLUDING
STRUCTURES BUILT FOR LODGING BUT USED OTHERWISE, SUCH AS MODEL HOMES,
APARTMENTS USED AS OFFICE, ETC.
"Communications Channel"means any line, wire, cable, microwave, radio signal, light beam,
telephone, telegraph, or any other electromagnetic means of moving a message.
"Construction Contractino"refers to the activity of a construction contractor.
"Construction Contractor"means a person who undertakes to or offers to undertake to, or purports
to have the capacity to undertake to, or submits a bid to, or does himself or by or through others,
construct, alter, repair, add to, subtract from, improve, move, wreck, or demolish any building,
highway, road, railroad, excavation, or other structure, project, development, or improvement to real
property, or to do any part thereof."Construction contractor" includes subcontractors, specialty
contractors, prime contractors,and any person receiving consideration for the general supervision
and/or coordination of such a construction project.This definition shall govern without regard to
whether or not the construction contractor is acting in fulfillment of a contract.
1
"Delivery (of Notice) by the Tax Collector"means "receipt (of notice) by the taxpayer".
"Delivery, Installationi_or Other Direct Customer Services"means services or labor, excluding repair
labor, provided by a taxpayer to or for his customer at the time of transfer of tangible personal
property; provided further that the charge for such labor or service is separately billed to the
customer and maintained separately in the taxpayer's books and records.
"Enaaqincr,when used with reference to engaging or continuing in business, includes the exercise
of corporate or franchise powers.
"Equivalent Excise Tax"means either:
(1)a Privilege or Use Tax levied by another Arizona municipality upon the transaction in
question, and paid either to such Arizona municipality directly or to the vendor; or
(2).an excise tax levied by a political subdivision of a state other than Arizona upon the
transaction in question, and paid either to such jurisdiction directly or to the vendor; OR
(3)AN EXCISE TAX LEVIED BY A NATIVE AMERICAN GOVERNMENTS ORGANIZED
UNDER THE LAWS OF THE FEDERAL GOVERNMENT UPON THE TRANSACTION IN
QUESTION, AND PAID EITHER TO SUCH JURISDICTION DIRECTLY OR TO THE
VENDOR.
"Federal Government"means the United States Government, its departments and agencies; but
not including national banks or federally chartered or insured banks, savings and loan institutions,
or credit unions.
"Food" means any items intended for human consumption as defined by rules and regulations
adopted by the Department of Revenue, State of Arizona, pursuant to A.R.S. Section 42-1387.
Under no circumstances shall "food" include alcoholic beverages or tobacco,or food items
purchased for use in conversion to any form of alcohol by distillation, fermentation, brewing, or other
process.
"Hotel" means any public or private hotel, inn, hostelry, tourist home, house, motel, rooming house,
apartment house, trailer, or other lodging place within the City offering lodging, wherein the owner
thereof, for compensation, furnishes lodging to any transient, except foster homes, rest homes,
sheltered care homes, nursing homes, or primary health care facilities.
"Job Printing"means the activity of copying or reproducing an article by any means, process, or
method."Job printing" includes engraving of printing plates, embossing, copying, micrographics,
and photo reproduction.
"Lessee"includes the equivalent person in a rental or licensing agreement for all purposes of this
Chapter.
"Lessor" includes the equivalent person in a rental or licensing agreement for all purposes of this
Chapter.
"Licensing (for Use)"means any agreement between the user ("licensee") and the owner or the
owner's agent ("licensor") for the use of the licensor's property whereby the licensor receives
consideration,where such agreement does not qualify as a "sale" or "lease" or "rental" agreement.
"Lodainq (Lodqinq Space)"means any room or apartment in a hotel or any other provider of rooms,
trailer spaces,or other residential dwelling spaces;or the furnishings or services and
accommodations accompanying the use and possession of said dwelling space, including storage
or parking space for the property of said tenant.
"MANUFACTURED BUILDINGS"MEANS A MANUFACTURED HOME,MOBILE HOME OR
FACTORY BUILT BUILDING, AS DEFINED IN A.R.S. SECTION 41-2142.
2
"Manufacturer"means a person engaged or continuing in the business of fabricating, producing,
or manufacturing products, wares, or articles for use from other forms of tangible personal property,
imparting to such new forms, qualities, properties, and combinations.
"Manufacturing."t
"Mining and Metallurgical Supplies"means all tangible personal property acquired by persons
engaged in activities defined IA sub3eetien-8A-488-(a){4} SECTION 8A-432 for such use.This
definition shall not include:-
(1)janitorial equipment and supplies.
(2)office equipment, office furniture, and office supplies.
(3)motor vehicles licensed for use upon the highways of the State.
"Modifier"means a person who reworks, changes, or adds to products, wares, or articles of
manufacture.
"Nonprofit Entity"means any entity organized and operated exclusively for charitable purposes, or
operated by the Federal Government, the State, or any political subdivision of the State.
"Occupancy (of Real Property)"means any occupancy or use, or any right to occupy or use, real
property including any improvements, rights, or interests in such property.
"Out -of -City Sale"means the sale of tangible personal property and job printing if all of the following
occur:
(1)transference of title and possession occur without the City; and
(2)the stock from which such personal property was taken was not within the corporate limits
of the City; and
(3)the order is received at a permanent business location of the seller located outside the
City; which location is used for the substantial and regular conduct of such business sales
activity.In no event shall the place of business of the buyer be determinative of the situs
of the receipt of the order.
For the purpose of this definition it does not matter that all other indicia of business occur within the
City, including, but not limited to, accounting, invoicing, payments, centralized purchasing, and
supply to out -of -City storehouses and out -of -City retail branch outlets from a primary storehouse
within the City.
"Out -of -State Sale"means the sale of tangible personal property and job printing if all of the
following occur:
(1)The order is placed from without the State of Arizona; and
(2)the order is placed by other than a resident of the State to be determined in a manner
similar to "resides within the City"; and
(3)the property is delivered to the buyer at a location outside the State; and
(4)the property is purchased for use outside the State.
3
"Owner -Builder"means an owner or lessor of real property who, by himself or by or through others,
constructs or has constructed or reconstructs or has reconstructed any improvement to real
property.
"Person" means an individual, firm, partnership, joint venture, association, corporation, estate, trust,
receiver, syndicate, broker, the Federal Government, this State, or any political subdivision or
agency of this State.For the purposes of this Chapter, a person shall be considered a distinct and
separate person from any general or limited partnership or joint venture or other association with
which such person is affiliated.A subsidiary corporation shall be considered a separate person
from its parent corporation for purposes of taxation of transactions with its parent corporation.
"Primary Health Care Facility"Means any hospital or any licensed nursing care institution or
licensed residential care institution, licensed pursuant to Chapter 4, Title 36, Arizona Revised
Statutes, or any licensed kidney dialysis center.
"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,HEARING AID DISPENSER,
PHYSICIAN ASSISTANT, NURSE PRACTITIONER or veterinarian:
(1)any man-made device for support or replacement of a part of the body, or to increase
acuity of one of the senses.Such items include: prescription eyeglasses; contact lenses;
hearing aids; artificial limbs or teeth; neck, back,, arm, leg, or similar braces.
(2)insulin 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 equipment" is not used by the person claiming the
exemption for any purpose other than rental, lease, or license for compensation, to an
extent greater than fifteen percent (15%) of its actual use.
"Repairer"means a person who restores or renews products, wares, or articles of manufacture.
4
"Resides within the City"means in cases other than individuals, whose legal addresses are
determinative of residence, the engaging, continuing, or conducting of regular business activity
within the City.
"Restaurant"means any business activity where articles of food, drink, or condiment are customarily
prepared or served to patrons for consumption on or off the premises, also including bars, cocktail
lounges, the dining rooms of hotels, and all caterers.For the purposes of this Chapter, a "fast food"
business,which includes street vendors and mobile vendors selling in public areas or at
entertainment or sports or similar events, who prepares or sells food or drink for consumption on
or off the premises is considered a "restaurant", and not a "retailer".
"Retail Sale (Sale at Retail)"means the sale of tangible personal property, except the sale of
tangible person property to a person regularly engaged in the business of selling such property.
"Retailer" means any person engaged or continuing in the business of sales of tangible personal
property at retail.
"Sale" means any transfer of title or possession, or both, exchange, barter, conditional or otherwise,
in any manner or by any means whatsoever, including consignment transactions and auctions, of
property for a consideration."Sale" includes any transaction whereby the possession of such
property is transferred but the seller retains the title as security for the payment of the price."Sale"
also includes the fabrication of tangible personal property for consumers who, in whole or in part,
furnish either directly or indirectly the materials used in such fabrication work.
"Speculative Builder"means either:
(1)an owner -builder who sells or contracts to sell, at anytime, improved real property (as
provided in Section 8A-416) consisting of:
A)custom, model, or inventory homes, regardless of the stage of completion of such
homes; or
B)improved residential or commercial lots without a structure; or
(2)an owner -builder who sells or contracts to sell improved real property,other than
improved real property specified in subsection (1) above:
A)prior to completion; or
B)before the expiration of twenty-four (24) months after the improvements of the real
property sold are substantially complete.
"Substantially Complete"means the construction contracting or reconstruction contracting:
(1)has passed final inspection or its equivalent; or
(2)certificate of occupancy or its equivalent has been issued; or
(3)is ready for immediate occupancy or use.
"Supplier"means any person who rents, leases, licenses, or makes sales of tangible personal
property within the City, either directly to the consumer or customer or to wholesalers, jobbers,
fabricators, manufacturers, modifiers, assemblers, repairers, or those engaged in the business of
providing services which involve the use, sale, rental, lease, or license of tangible personal property.
"Tax Collector"means the Revenue Officer/City Clerk or their designee or agent for all purposes
under this Chapter.
"Taxpayer"means any person liable for any tax under this Chapter.
5
"Telecommunication Service"means any service or activity connected with the transmission or relay
of sound, visual image, data, information, images, or material over a communications channel or
any combination of communications channels.
"Utility Service"means the producing, providing, or furnishing of electricity, electric lights, current,
power, gas (natural or artificial), or water to consumers or ratepayers.
Section 2.Section 8A-110 of the Apache Junction City Tax Code is amended to read:
Sec. 8A-110.Definitions:income -producing capital equipment.
(a)The following tangible personal property, other than items excluded in subsection (d) below,
shall be deemed "income-producina capital equipment"for the purposes of this Chapter:
(1)machinery or equipment -•---: :- .- :--• -- . •: - •- :- . - : '-
el USED DIRECTLY IN manufacturing, PROCESSING, FABRICATING, er job printing,
REFINING OR METALLURGICAL OPERATIONS.Moehinery-er-equipment-lioving
an extent gmater than fifteen percent (15%)of its actual ucc.THE TERMS
"MANUFACTURING", "PROCESSING", "FABRICATING", "JOB PRINTING", "REFINING",
AND "METALLURGICAL" AS USED IN THIS PARAGRAPH REFER TO AND INCLUDE
THOSE OPERATIONS COMMONLY UNDERSTOOD WITHIN THEIR ORDINARY
MEANING."METALLURGICAL OPERATIONS"INCLUDES LEACHING,MILLING,
PRECIPITATING, SMELTING AND REFINING.
(2)MINING MACHINERY, OR EQUIPMENT, USED DIRECTLY IN THE PROCESS OF
EXTRACTING ORES OR MINERALS FROM THE EARTH FOR COMMERCIAL
PURPOSES, INCLUDING EQUIPMENT REQUIRED TO PREPARE THE MATERIALS
FOR EXTRACTION AND HANDLING,LOADING OR TRANSPORTING SUCH
EXTRACTED MATERIAL TO THE SURFACE. "MINING" INCLUDES UNDERGROUND,
SURFACE AND OPEN PIT OPERATIONS FOR EXTRACTING ORES AND MINERALS.
(21 (3)TANGIBLE PERSONAL PROPERTY, SOLD TO PERSONS ENGAGED IN BUSINESS
CLASSIFIED UNDER THE TELECOMMUNICATIONS CLASSIFICATION, CONSISTING
OF central office switching equipment; switchboards; private branch exchange equipment;
microwave radio EQUIPMENT, and
equipment. CARRIER EQUIPMENT INCLUDING OPTICAL FIBER, coaxial cable, when
Se.14-13
AND OTHER TRANSMISSION MEDIA WHICH ARE COMPONENTS OF CARRIER
SYSTEMS.
(a)(4)machinery,equipment,or transmission lines used directly in the—preduetion—ef
transmission of PRODUCING OR TRANSMITTING electrical' power, but not including
items -used -for distribution.
substation cites.
(43 (5)
TRANSFORMERS AND CONTROL EQUIPMENT USED AT TRANSMISSION
SUBSTATION SITES CONSTITUTE EQUIPMENT USED IN PRODUCING OR
TRANSMITTING ELECTRICAL POWER.
pipes or valves for-suell-pipes;four Inches (4") in interior diameter or larger, used for
transporting TO TRANSPORT oil, natural gas, artificial gas, water, or coal slurry.
6
(6)(6)airplanes AIRCRAFT,navigational and communication Instruments, and other accessories
and related equipment SOLD TO:
(7)
(6)(8)
+3 (9)
(8)(10)
(A)A PERSON HOLDING A FEDERAL CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY OR FOREIGN AIR CARRIER PERMIT FOR AIR
TRANSPORTATION FOR USE AS OR IN CONJUNCTION WITH OR BECOMING
A PART OF AIRCRAFT TO BE USED TO TRANSPORT PERSONS, PROPERTY
OR UNITED STATES MAIL IN INTRASTATE,INTERSTATE OR FOREIGN
COMMERCE.•
.(B)ANY FOREIGN GOVERNMENT FOR USE BY SUCH GOVERNMENT OUTSIDE
•OF THIS STATE.
(C)PERSONS WHO ARE NOT RESIDENTS OF THIS STATE AND WHO WILL NOT
USE SUCH PROPERTY IN THIS STATE OTHER THAN IN REMOVING SUCH
PROPERTY FROM THIS STATE.THIS SUBDIVISION ALSO APPLIES TO
CORPORATIONS THAT ARE NOT INCORPORATED IN THIS STATE,
REGARDLESS OF MAINTAINING A PLACE OF BUSINESS IN THIS STATE, IF
THE PRINCIPAL CORPORATE OFFICE IS LOCATED OUTSIDE THIS STATE AND
THE PROPERTY WILL NOT BE USED IN THIS STATE OTHER THAN IN
REMOVING THE PROPERTY FROM THIS STATE.
MACHINERY, TOOLS, EQUIPMENT AND RELATED SUPPLIES USED OR CONSUMED
DIRECTLY IN REPAIRING, REMODELING OR MAINTAINING AIRCRAFT, AIRCRAFT
ENGINES OR AIRCRAFT COMPONENT PARTS BY OR ON BEHALF OF A
CERTIFICATED OR LICENSED CARRIER OF PERSONS OR PROPERTY.
RAILROAD rolling stock, rails, tiesr eF AND signal control equipment used by relic -Gads
directly in-tbe-tfanspectatien-ef TO TRANSPORT persons or property in intrastate or
interstate transportation for hire.
machinery or equipment used directly by TO DRILL FOR oil or gas dfilling-er-e*tfaeting
eengsanies-in-the-elfilling-fer-ef4n-tbe OR USED DIRECTLY IN THE process of extracting
oil or gas from the earth for commercial purposes.
BUSES OR OTHER
URBAN MASS TRANSIT VEHICLES WHICH ARE USED DIRECTLY TO TRANSPORT
PERSONS OR PROPERTY FOR HIRE OR PURSUANT TO A GOVERNMENTALLY
ADOPTED AND CONTROLLED URBAN MASS TRANSPORTATION PROGRAM AND
WHICH ARE SOLD TO BUS COMPANIES HOLDING A FEDERAL CERTIFICATE OF
CONVENIENCE AND NECESSITY OR OPERATED BY A CITY,-TOWN 'OR OTHER
GOVERNMENTAL ENTITY OR BY ANY PERSON CONTRACTING with such a
governmental entity as part of a governmentally adopted and controlled program to
provide urban mass transportation.
(9)(11)metering, monitoring, receiving, and transmitting equipment acquired by persons engaged
in the business of providing utility services or telecommunications services; but only to the
extent that such equipment is to be used by the customers of such persons and such
persons separately charge or bill their customers for use of such equipment.
(10)
activity.
(12)GROUNDWATER MEASURING DEVICES REQUIRED UNDER A.R.S. §45-604.
7
(13)MACHINERY OR EQUIPMENT USED IN RESEARCH AND DEVELOPMENT.IN THIS
PARAGRAPH, "RESEARCH AND DEVELOPMENT' MEANS BASIC AND APPLIED
RESEARCH IN THE SCIENCES AND ENGINEERING, AND DESIGNING, DEVELOPING
OR TESTING PROTOTYPES,PROCESSES OR NEW PRODUCTS,INCLUDING
RESEARCH AND DEVELOPMENT OF COMPUTER SOFTWARE THAT IS EMBEDDED
IN OR AN INTEGRAL PART OF THE PROTOTYPE OR NEW PRODUCT OR THAT IS
REQUIRED FOR MACHINERY OR EQUIPMENT OTHERWISE EXEMPT UNDER THIS
SECTION TO FUNCTION EFFECTIVELY. RESEARCH AND DEVELOPMENT DO NOT
INCLUDE MANUFACTURING QUALITY CONTROL, ROUTINE CONSUMER PRODUCT
TESTING, MARKET RESEARCH, SALES PROMOTION, SALES SERVICE, RESEARCH
IN SOCIAL SCIENCES OR PSYCHOLOGY, COMPUTER SOFTWARE RESEARCH
THAT IS NOT INCLUDED IN THE DEFINITION OF RESEARCH AND DEVELOPMENT,
OR OTHER NONTECHNOLOGICAL ACTIVITIES OR TECHNICAL SERVICES.
04)(14)(Reserved)
(15)INCLUDED IN INCOME PRODUCING CAPITAL EQUIPMENT ARE LIQUID, SOLID OR
GASEOUS CHEMICALS USED IN MANUFACTURING, PROCESSING, FABRICATING,
MINING,REFINING,METALLURGICAL OPERATIONS OR RESEARCH AND
DEVELOPMENT IF USING OR CONSUMING THE CHEMICALS, ALONE OR AS PART
OF AN INTEGRATED SYSTEM OF CHEMICALS, INVOLVING DIRECT CONTACT WITH
THE MATERIALS FROM WHICH THE PRODUCT IS PRODUCED FOR THE PURPOSE
OF CAUSING OR PERMITTING A CHEMICAL OR PHYSICAL CHANGE TO OCCUR IN
THE MATERIALS AS PART OF THE PRODUCTION PROCESS.THIS SUBSECTION
DOES NOT INCLUDE CHEMICALS THAT ARE USED OR CONSUMED IN ACTIVITIES
SUCH AS PACKAGING, STORAGE OR TRANSPORTATION BUT DOES NOT AFFECT
ANY DEDUCTION FOR SUCH CHEMICALS THAT IS OTHERWISE PROVIDED BY
THIS REGULATION.
(b)The term "income -producing capital equipment" shall further include ancillary machinery and
equipment used for the treatment of waste products created by the business activities which
are allowed to purchase "income -producing capital equipment" defined in subsection (a) above.
(c)The term "income -producing capital equipment" shall further include repair and replacement
parts, other than the items in subsection (d) below, where the property is acquired to become
an integral part of another item itemized in subsections (a) or (b) above.
(d)The tangible personal property defined as income -producing capital equipment in this Section
shall not include:
(1)expendable items MATERIALS.-• -- -• - •- ---
(2)
Ea)
+43 (3 )
(53 (4)
(6 )
( 3 (5)
EI-444141-n
41313444?
pfevieled-by-RegulatienT
janitorial equipment and supplies HAND TOOLS.
•IReed-teels:
office equipment, furniture, and supplies.
tangible personal property used in selling or distributing activities.
Ri4ffffilfe-BeFSE
motor vehicles required to be licensed by the State of Arizona, witheut-Fegefd-te-the-use
EXCEPT
BUSES OR OTHER URBAN MASS TRANSIT VEHICLES SPECIFICALLY EXEMPTED
PURSUANT TO subsection (a)i83(10) above WITHOUT REGARD TO THE USE OF
SUCH MOTOR VEHICLES.
8
{8)(6)shops, buildings, docks, depots, er--e4her--aReFatiens-ef-real-pfeperty AND ALL OTHER
MATERIALS OF WHATEVER KIND OR CHARACTER NOT SPECIFICALLY INCLUDED
AS EXEMPT.
(7)MOTORS AND PUMPS USED IN DRIP IRRIGATION SYSTEMS.
(e)FOR THE PURPOSES OF THIS SECTION:
(1)"AIRCRAFT' INCLUDES:
(A)AN AIRPLANE FLIGHT SIMULATOR THAT IS APPROVED BY THE FEDERAL
AVIATION ADMINISTRATION FOR USE AS A PHASE ll OR HIGHER FLIGHT
SIMULATOR UNDER APPENDIX H,14 CODE OF FEDERAL REGULATIONS
PART 121.
(B)TANGIBLE PERSONAL PROPERTY THAT IS PERMANENTLY AFFIXED OR
ATTACHED AS A COMPONENT PART OF AN AIRCRAFT THAT IS OWNED OR
OPERATED BY A CERTIFICATED OR LICENSED CARRIER OF PERSONS OR
PROPERTY.
(2)"OTHER ACCESSORIES AND RELATED EQUIPMENT"INCLUDES AIRCRAFT
ACCESSORIES AND EQUIPMENT SUCH AS GROUND SERVICE EQUIPMENT THAT
PHYSICALLY CONTACT AIRCRAFT AT SOME POINT DURING THE OVERALL
CARRIER OPERATION.
Section 3.Section 8A-240 of the Apache Junction City Tax Code is amended to read:
Sec. 8A-240.Exclusion of cash discounts, returns, refunds, trade-in values, vendor -issued
coupons, and rebates from gross income.
(a)The following items are not included in gross income:
(1)Cash discounts allowed by the vendor for timely payment, but only discounts allowed
against taxable gross income.
(2)The value of property returned by customers to the extent of the amount actually refunded
either in cash or by credit and the amount refunded was included in taxable gross
income.
(3)The trade-in allowance for tangible personal property accepted as payment, not to exceed
the full sales price for any tangible personal property sold, when the full sales price is
included in taxable gross income. TRADE-IN ALLOWANCES ARE NOT ALLOWED FOR
MANUFACTURED BUILDINGS TAXABLE UNDER SECTION 8A-427.
(4)When coupons issued by a vendor are later accepted by the vendor as a discount against
the transaction, the discount may be excluded from gross income as a cash discount.
Amounts credited or refunded by a vendor for redemption of coupons issued by any
person other than the vendor may not be excluded from gross income.
(5)Rebates issued by the vendor to a customer as a discount against the transaction may
be excluded from gross income as a cash discount.Rebates issued by a person other
than the vendor may not be excluded from gross income, even when the vendee assigns
his right to the rebate to the vendor.
(b)If the amount specified in subsection (a) above is credited by a vendor subsequent to the
reporting period in which the original transaction occurs, such amount may be excluded from
the taxable gross income of that subsequent reporting period, but only to the extent that the
excludable amount was reported as taxable gross income in that prior reporting period.
9
Section 4.The Apache Junction City Tax Code is amended by the addition of Section 8A-265 to
read:
Sec. 8A-265.(RESERVED)
Section 5.The Apache Junction City Tax Code is amended by the addition of Section 8A-266 to
read:
Sec. 8A-266.EXCLUSION OF MOTOR CARRIER REVENUES FROM GROSS INCOME
THERE SHALL BE EXCLUDED FROM GROSS INCOME THE GROSS PROCEEDS OF SALE OR
GROSS INCOME DERIVED FROM ANY OF THE FOLLOWING:
(a)A MOTOR CARRIER'S USE ON THE PUBLIC HIGHWAYS IN THIS STATE IF THE MOTOR
CARRIER IS SUBJECT TO TAX UNDER A.R.S. TITLE 28, CHAPTER 9, ARTICLE 6.
(b)A PERSON'S USE OF_A LIGHTWEIGHT MOTOR VEHICLE ON THE PUBLIC HIGHWAYS IN
THIS STATE IF SUCH PERSON IS SUBJECT TO TAX UNDER A.R.S.TITLE 28,
CHAPTER 9, ARTICLE 6.
(c)LEASING,RENTING OR LICENSING A MOTOR VEHICLE,INCLUDING LIGHTWEIGHT
MOTOR VEHICLES, SUBJECT TO AND UPON WHICH THE TAX HAS BEEN PAID UNDER
A.R.S. TITLE 28, CHAPTER 9, ARTICLE 6.
(d)THE SALE OF A MOTOR VEHICLE AND ANY REPAIR AND REPLACEMENT PARTS AND
TANGIBLE PERSONAL PROPERTY BECOMING A PART OF SUCH MOTOR VEHICLE, TO
A LICENSED MOTOR CARRIER OR LIGHTWEIGHT MOTOR VEHICLE OPERATOR WHO
IS SUBJECT TO TAX UNDER TITLE 28, CHAPTER 9, ARTICLE 6 AND WHO IS ENGAGED
IN THE BUSINESS OF LEASING, RENTING OR LICENSING SUCH PROPERTY.
Section 6.Section 8A-300 of the Apache Junction City Tax Code is amended to read:
Sec. 8A-300.Licensing requirements.
(a)The following persons shall make application to the Tax Collector for a Privilege License,
accompanied by a non-refundable 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, LOCATION, OR MAILING ADDRESS within thirty (30) days.
10
(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..
Section 7.Section 8A-410 of the Apache Junction City Tax Code is amended to read:
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 TYPE OR NATURE
OF 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, dance halls, sports events,
jukeboxes, batting and driving ranges, animal rides, or any other business charging
admission for exhibition, amusement, OR entertainmentr or instruction.
(2)health spas, fitness centers, DANCE STUDIOS, or other persons who charge for the use
of premises for sports, athletic, ef other health -related activities OR INSTRUCTION,
whether on a per -event use, or for long-term usage, such as membership fees.
(b)(Reserved)
Section 8.Section 8A-415 of the Apache Junction City Tax Code is amended to read:
Sec. 8A-415.Construction contracting:Construction 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)
(3)GROSS INCOME FROM CONSTRUCTION CONTRACTING SHALL NOT INCLUDE
GROSS INCOME FROM THE SALE OF MANUFACTURED BUILDINGS TAXABLE
UNDER SECTION 8A-427.
(b)Deductions.
(1)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%).
(c)Subcontractor means a construction contractor performing work for either:
(1)a construction contractor who has provided the subcontractor with a written declaration
that he is liable for the tax for the project and has provided the subcontractor his City
Privilege License number.
(2)an owner -builder who has provided the subcontractor with a written declaration that:
(A)the owner -builder is improving the property for sale; and
(B)the owner -builder is liable for the tax for such construction contracting activity; and
11
(C)the owner -builder has provided the contractor his City Privilege License number.
(3)A PERSON SELLING NEW MANUFACTURED BUILDINGS WHO HAS PROVIDED THE
SUBCONTRACTOR WITH A WRITTEN DECLARATION THAT HE IS LIABLE FOR THE
TAX FOR THE SITE PREPARATION AND SET-UP;AND PROVIDED THE
SUBCONTRACTOR HIS CITY PRIVILEGE LICENSE NUMBER.
Subcontractor also includes a construction contractor performing work for another subcontractor as
defined above.
Section 9.Section 8A-425 of the Apache Junction City Tax Code is amended to read:
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.
(6)(RESERVED)
Section 10.The Apache Junction City Tax Code is amended by the addition of Section 8A-427
to read:
SEC. 8A-427 MANUFACTURED BUILDINGS
(a)THE TAX RATE SHALL BE AT AN AMOUNT EQUAL TO TWO PERCENT (2%) OF THE
GROSS INCOME, INCLUDING SITE PREPARATION, MOVING TO THE SITE, AND/OR SET-
UP, UPON EVERY PERSON ENGAGING OR CONTINUING IN THE BUSINESS ACTIVITY
OF SELLING MANUFACTURED BUILDINGS WITHIN THE CITY.- SUCH BUSINESS
ACTIVITY IS DEEMED TO OCCUR AT THE BUSINESS LOCATION OF THE SELLER
WHERE THE PURCHASER FIRST ENTERED INTO THE CONTRACT TO PURCHASE THE
MANUFACTURED BUILDING.
(b)THE SALE OF USED MANUFACTURED BUILDINGS ARE NOT TAXABLE.
(c)THE SALES PRICE OF FURNITURE,FURNISHINGS,FIXTURES,APPLIANCES,AND
ATTACHMENTS THAT ARE NOT INCORPORATED AS COMPONENT PARTS OF OR
ATTACHED TO A MANUFACTURED BUILDING ARE EXEMPT FROM THE TAX IMPOSED
BY THIS SECTION.THE SALE OF SUCH ITEMS ARE SUBJECT TO THE TAX UNDER
SECTION 8A-460.
12
(d)UNDER THIS SECTION, A TRADE-IN WILL NOT BE ALLOWED FOR THE PURPOSE OF
REDUCING THE TAX LIABILITY.
Section 11.Section 8A-430 of the Apache Junction City Tax Code is amended to read:
Sec. 8A-430.MiatagrtiaibefingTTIMBERING 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:
23 (1)
(2)
profit, ef-eammeFelai-user
felling, producing, or preparing timber or any product of the forest for sale, profit, or
commercial use.
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
fairiedr enielted7 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.
(d)(RESERVED)
Section 12.The Apache Junction City Tax Code is amended by the addition of Section 8A-432
to read:
Sec. 8A-432.Mining
(a)THE TAX RATE SHALL BE AT AN AMOUNT EQUAL TO ONE TENTH OF ONE PERCENT
(.1%), NOT TO EXCEED ONE TENTH OF ONE PERCENT, OF THE GROSS INCOME FROM
THE BUSINESS ACTIVITY UPON EVERY PERSON ENGAGING OR CONTINUING IN THE
BUSINESS OF 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.
(b)THE RATE SPECIFIED IN SUBSECTION (a) ABOVE SHALL BE APPLIED TO THE VALUE
OF THE ENTIRE PRODUCT MINED, SMELTED OR PRODUCED 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.
13
(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.
Section 13.Section 8A-445 of the Apache Junction City Tax Code is amended to read:
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 Lice, or renting real property located within the City for a consideration, to the tenant in
actual possession, OR THE LICENSING FOR USE OF REAL PROPERTY LOCATED WITHIN
THE CITY FOR A CONSIDERATION 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)
U)Exempt from the tax imposed by this Section is gross income derived from the activities taxable
under Section 8A-444 of this code.
(k)(Reserved)
14
(I)(RESERVED)
(m) (RESERVED)
(n)NOTWITHSTANDING THE PROVISIONS OF SECTION 8A -200(b),THE FAIR MARKET
VALUE OF ONE (1) APARTMENT, IN AN APARTMENT COMPLEX PROVIDED RENT FREE
TO AN EMPLOYEE OF THE APARTMENT COMPLEX IS NOT SUBJECT TO THE TAX
IMPOSED BY THIS SECTION. FOR AN APARTMENT COMPLEX WITH MORE THAN FIFTY
(50) UNITS, AN ADDITIONAL APARTMENT PROVIDED RENT FREE TO AN EMPLOYEE
FOR EVERY ADDITIONAL FIFTY (50) UNITS IS NOT SUBJECT TO THE TAX IMPOSED BY
THIS SECTION.
Section 14.Section 8A-450 of the Apache Junction City Tax Code is amended to read:
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.
(b)Special provisions relating to long-term motor vehicle leases.A lease transaction involving a
motor vehicle for a minimum period of twenty-four (24) months shall be considered to have
occurred at the location of the motor vehicle dealership, rather than the location of the place
of business of the lessor, even if the lessor's interest in the lease and its proceeds are sold,
transferred, or otherwise assigned to a lease financing institution; provided further that the city
or town where such motor vehicle dealership is located levies a Privilege Tax or an equivalent
excise tax upon the transaction.
(c)Gross income derived from the following transactions shall be exempt from Privilege Taxes
imposed by this Section:
(1)rental, leasing, or licensing for use of tangible personal property to persons engaged or
continuing in the business of leasing, licensing for use, or rental of such property.
(2)rental, leasing, or licensing for use of tangible personal property that is semi -permanently
or permanently installed within another city or town that levies an equivalent excise tax
on the transaction.
(3)rental, leasing, or licensing for use of film, tape, or slides to a theater or other person
taxed under Section 8A-410, or to a radio station, television station, or subscription
television system.
(4)rental, leasing, or licensing for use of the following:
(A)prosthetics.
(B)income -producing capital equipment.
(C)mining and metallurgical supplies.
THESE EXEMPTIONS INCLUDE THE RENTAL, LEASING, OR LICENSING FOR USE
OF TANGIBLE PERSONAL PROPERTY WHICH,IF IT HAD BEEN PURCHASED
INSTEAD OF LEASED, RENTED, OR LICENSED BY THE LESSEE OR LICENSEE,
WOULD QUALIFY AS INCOME -PRODUCING CAPITAL EQUIPMENT OR MINING AND
METALLURGICAL SUPPLIES.
(5)rental, leasing, or licensing for use of tangible personal property to 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.
15
(6)
(7)
(8)
(9)
separately billed charges for delivery, installation, repair, and/or maintenance as provided
by Regulation.
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.
(Reserved)
(Reserved)RENTAL,LEASING,OR LICENSING OF AIRCRAFT THAT WOULD
QUALIFY AS AIRCRAFT ACQUIRED FOR USE OUTSIDE THE STATE,AS
PRESCRIBED BY REGULATION, IF SUCH RENTAL, LEASING, OR LICENSING HAD
BEEN A SALE.
Section 15.Section 8A-465 of the Apache Junction City Tax Code is amended to read:
Sec. 8A-465.Retail sales: exemptions
Income derived from the following sources is exempt from the tax imposed by Section 8A-460:
(a)sales of tangible personal property to a person regularly engaged in the business of selling
such property.
(b)out -of -City sales and OR out -of -State sales.
(c)charges for delivery, installation, or other direct customer services as prescribed by Regulation.
(d)charges for repair services as prescribed by Regulation,when separately charged and
separately maintained in the books and records of the taxpayer.
(e)(Reserved)
(f)sales of prosthetics.
(g)sales of income -producing capital equipment.
(h)sales of rental equipment and rental supplies.
(i)sales of mining and metallurgical supplies.
(j)sales of motor vehicle fuel and use fuel which are subject to a tax imposed under the
provisions of Article I or II, Chapter 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.
(I)(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.
16
(n)sales made directly to the Federal government to the extent of:
(1)one hundred percent (100%) of the gross income derived from retail sales made by a
manufacturer, modifier, assembler, or repairer.
(2)fifty percent (50%) of the gross income derived from retail sales made by any other
person.
(o)sales to hotels,bars,restaurants, dining cars,lunchrooms,boarding houses,or similar
establishments of articles consumed as food, drink, or condiment, whether simple, mixed, or
compounded,where such articles are customarily prepared or served to patrons for
consumption on or off the premises, where the purchaser is properly licensed and paying a tax
under Section 8A-446 8A-455 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.
(r)(Reserved)
(1)(Reserved)
(2)(Reserved)
(3)(Reserved)
(4)(Reserved)
(s)sales of groundwater measuring devices required by A.R.S. Section 45-604.
(t)(Reserved)
(u)(Reserved)SALES OF AIRCRAFT ACQUIRED FOR USE OUTSIDE THE STATE,AS
PRESCRIBED BY REGULATION.
(v)(Reserved)
(w) (Reserved)
(x)(Reserved)
(y)(Reserved)
(z)(Reserved)
Section 16.Section 8A-480 of the Apache Junction City Tax Code is amended to read:
Sec. 8A-480.Utility services.
(a)The tax rate shall be at an amount equal to three percent (3%) of the gross income from the
business activity upon every person engaging or continuing in the business of producing,
17
providing, or furnishing utility services, including electricity, electric lights, current, power, gas
(natural or artificial), or water to:
(1)consumers or ratepayers who reside within the City.
(2)(Reserved)•
(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,
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.
Section 17.Section 8A-590 of the Apache Junction City Tax Code is amended to read:
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 THE SAME IS due, AND the date of accrual thereof, THE
AMOUNT OF THE RECORDING COSTS BY THE COUNTY RECORDER IN ANY
COUNTY IN WHICH THE TAXPAYER OWNS REAL PROPERTY AND THE
DOCUMENTATION AND LIEN PROCESSING FEES IMPOSED BY THE CITY COUNCIL
and FURTHER, 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
AND RECORDING COSTS AND. LIEN PROCESSING FEES REFERRED TO ABOVE 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.
18
(3)Every tax • -- ;;.-•- - • ; - , • - : •• - - - .-, • ---, • -;-•-- --AND
ANY INCREASES, INTEREST, PENALTIES, AND RECORDING COSTS AND LIEN
PROCESSING FEES REFERRED TO ABOVE, 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, RECORDING COSTS AND LIEN PROCESSING FEES REFERRED TO
ABOVE AND LIEN RELEASE FEES IMPOSED BY THE COUNTY RECORDER IN ANY
COUNTY IN WHICH THE LIEN WAS RECORDED, effeeted 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 THE SAME IS due, AND the date of accrual thereof, THE
AMOUNT OF THE RECORDING COSTS BY THE COUNTY RECORDER IN ANY
COUNTY IN WHICH THE TAXPAYER OWNS REAL PROPERTY AND THE
DOCUMENTATION AND LIEN PROCESSING FEES IMPOSED BY THE CITY COUNCIL
and FURTHER, 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
AND RECORDING COSTS AND LIEN PROCESSING FEES REFERRED TO ABOVE 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 • -- :;-- •- - • :-. -.•- •-, • ---,•-; - -*---- AND
ANY INCREASES, INTEREST, PENALTIES, AND RECORDING COSTS AND LIEN
PROCESSING FEES REFERRED TO ABOVE, 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,
end interest, RECORDING COSTS AND LIEN PROCESSING FEES REFERRED TO
ABOVE AND LIEN RELEASE FEES IMPOSED BY THE COUNTY RECORDER IN ANY
COUNTY IN WHICH THE LIEN WAS RECORDED, effeeted 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.
19
(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,afiEi interest, RECORDING COSTS,
LIEN PROCESSING FEES AND LIEN RELEASE FEES 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.
Section 18.Regulation 8A-110.1, relating to income -producing capital equipment: in general, of
the Apache Junction City Tax Code is repealed.
Section 19.Regulation 8A-110.2, relating to income -producing capital equipment:manufacturing
equipment; job printing equipment, of the Apache Junction City Tax Code is repealed.
Section 20.Regulation 8A-200.1 of the Apache Junction City Tax Code is amended to read:
Reg. 8A-200.1.When fekindable deposits are includable in gross income.
(a)In Ccncral.Refundable deposits shall be includable as gross income of the taxpayer for the
month in which
(b)
ricuiut Eiffee-E14;113E1 Elf+
FORFEITED BY THE LESSEE.
THE DEPOSITS ARE
NONREFUNDABLE DEPOSITS FOR CLEANING, KEYS, PET FEES, MAINTENANCE, OR
FOR ANY OTHER PURPOSE ARE DEEMED GROSS INCOME UPON RECEIPT.
20
Section 21.Regulation 8A-415.2 of the Apache Junction City Tax Code is amended to read:
Reg. 8A-415.2.Distinction between construction contracting 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.
(2)Rental of scaffolding, temporary fences, or barricades is :rental of tangible personal
property.'
(3)Rental of pumps or cranes is rental of tangible personal property, whether or not an
operator is provided with the equipment rented.
(b)Distinction between construction contracting,retail,and certain direct customer service
activities.
(1)When an item is attached or installed on real property, it is a construction contracting
activity and any subsequent repair, removal, or replacement of that item is construction
contracting.
(2)Items attached or installed on tangible personal property are retail sales.
(3)Transactions where no tangible personal property is attached or installed are considered
direct customer service activities (for example:carpet cleaning,lawn mowing,
landscaping maintenance).
(4)Demolition, earth moving, and wrecking activities are considered construction contracting.
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(€13(c)Sale of consumable goods incorporated into or applied to real property is considered a
retail sale and not construction contracting.Examples of consumable ,goods are
lubricants, faucet washers, and air conditioning coolant, but not paint.
(e)(d)Installation or removal of tangible personal property which has independent functional
utility is considered a retail activity.
(1)"Tangible personal property which has independent functional utility" must be able to
substantially perform its function(s) without attachment to real property."Attachment to
real property" must include more than connection to water, power, gas, communication,
or other service.
(2)Examples of tangible personal property which has independent functional utility include
artwork, furnishings, "plug-in" kitchen equipment, or similar items installed by bolts or
similar fastenings.
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(3)Examples of tangible personal property which does not have independent functional utility
include wall-to-wall carpeting,flooring,wallpaper,kitchen cabinets,or "built-in"
dishwashers or ranges.
(4)The installation of window coverings (drapes, minl-blinds, etc.) is always a retail activity.
Section 22.Regulation 8A-416.1 of the Apache Junction City Tax Code Is amended to read:
Reg. 8A-416.1.Speculative builders: homeowner's bona fide non -business sale of a family
residence.
(a)A sale of -...•----— • "-• .- • -•- - •-•-- --
sale A CUSTOM HOME, REGARDLESS OF THE STAGE OF COMPLETION OF SUCH HOME
shall be considered a "homeowner's bona fide non -business sale" and not subject to the tax
on speculative builders if:
(1)the property was actually used as the principal place of family residence or vacation
residence by the immediate family of the seller for the six (6) months next prior to the
offer for sale; and
(2)the seller has not sold more than two (2) such residences (or, if the residence is a
vacation residence, two (2) such vacation residences) within the thirty-six (36) months
immediately prior to the offer for sale; and
(3)the seller has not licensed, leased, or rented the sold premises for any period within the
twenty-four (24) menth-peFied MONTHS prior to the offer for sale.
(b)In the event that a homeowner of a family residence contracts with a licensed construction
contractor for improvements to a residence,
THE construction contracting on a family
residence shall be presumed to be for an owner's bona fide non -business purpose and all
construction contractors shall be required to report and pay the tax imposed on all such
improvements.
(c)Purchases by a homeowner of tangible personal property for inclusion in any construction,
alteration, or repair of his residence shall be subject to tax as retail sales to the ultimate
consumer.
(d)"Owner" and "Homeowner"as used in this Regulation shall only mean an individual, and no
other entity, association, or representative shall qualify; except that an administrator, executor,
personal representative, or guardian in guardianship or probate proceedings, for the estate of
a deceased or incompetent person or a minor, may claim "homeowner" status for such person
if such person would have otherwise qualified with respect to the specific -property involved.
Section 23.Regulation 8A-416.2 of the Apache Junction City Tax Code is amended to read:
Reg. 8A-416.2.Reconstruction contracting.
(a)"Reconstruction (of Real Property)"shall mean the subdividing of real property and, in addition,
all construction contracting activities performed upon said real property; provided, however, that
each of the following conditions are met:
•(1)a structure existed on said real property prior to the reconstruction activity; and
(2)the "prior value" of said structure exceeds fifteen percent (15%) of the "prior value" of the
integrated property (land, improvements, and structure); and
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(3)the total cost of all construction contracting activities performed on said real property in
thelwenty-four (24) month period prior to the sale of any part of the real property exceeds
fifteen percent (15%) of the "prior value" of the real property; and
(4)the structure which existed on the real property prior to the reconstruction activity still
exists in some form upon the property, and is included, in whole or in part, in the property
sold.
(b)Except as provided In subsection (c) below,"prior value"means the value of the total integrated
property, with improvements, as existing Immediately prior to any reconstruction activity.Such
value shall be the full cash value of the property for secondary taxes as determined by the
County Assessor, as such statement of value includes both the land and improvements, without
any deduction or diminution.The value shall be as set in the year which is immediately
preceding the year in which the reconstruction Improvements are or could have been included
in the County Assessor's valuation.If the County Assessors valuation is contested or
appealed, the final determination at either the administrative or judicial level shall apply.
(c)"Alternative Prior Value"shall mean that as an alternative to the "prior value" defined above,
the taxpayer may use his actual cost of the reconstructed property prior to reconstruction,
provided that evidence of such cost is presented to the Tax Collector and is determined by the
Tax Collector, in his sole discretion, to be satisfactory.Such evidence shall consist, as a
minimum, of proof of the actual, arms -length acquisition price, accompanied by a full appraisal
of all property involved which appraisal shall have been performed by a real estate broker or
MAI appraiser specifically for the purpose of assisting in the acquisition and further shall have
been performed on behalf of the seller or a lending institution which has lent at least sixty-five
PERCENT (65%) peFeefit of the acquisition price.(Only long term lending - not interim or
construction financing will be considered.)This alternative value shall be used only if the
property was acquired by the reconstruction taxpayer not more than thirty-six (36) months prior
to a "sale" as defined below.
(d)A "sale" for the purpose of determining "alternative prior value" or "reconstruction" only shall
be deemed to have occurred as of the date of the execution of a contract of sale or a deed
(joint tenancy or warranty) whichever is earlier, to a purchaser or grantee of any single
residential or other occupancy unit.In addition to the foregoing, a lease with option to
purchase a single residential unit shall be considered a "sale" at the date of execution of such
lease if said option is exercisable by the lessee in not later than nine (9) months.Further in
the case of cooperative apartments, the sale date shall be the date of execution of the contract
selling (subject or not to encumbrances, liens or security interests) of a share, or a sufficient
number of shares which entitle the purchaser to the occupancy of a residential unit.In all
cases a person shall include a husband and wife as a community, or any co -occupants of a
single unit as joint tenants.
Section 24.Regulation 8A-445.2 relating to rental, leasing, and licensing of real property as
lodging: refundable and non-refundable deposits of the Apache Junction City Tax Code is repealed.
Section 25.Regulation 8A-445.3 of the Apache Junction City Tax Code is amended to read:
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.
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(2)The charge for lodging shall be subject to the tax imposed by Section 8A-444 OR
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.'
Section 26.Regulation 8A-465.3 of the Apache Junction City Tax Code is amended to read:
Reg. 8A-465.3.Retail sales:sale of containers, paper products, and labels.
(a)The sale of a -xfolfRafy container":-• --. --•--.""----"
means OR SIMILAR packaging material :.-• • • --.•- ,•--
ete7 which contains personal property pfier-te-sueli-pfepefty!s-sale and which is fieeessafily
transferred ' -- -• -•---:- -'---- ---TO THE
CUSTOMER WITH THE SALE OF THE PRODUCT IS NOT TAXABLE AS A SALE FOR
RESALE.Examples of such exempt -primacy NONTAXABLE containers include but are not
limited to:
(1)packaging materials sold to a manufacturer of video equipment for containment of the
product during shipment.
(2)cellophane -type wrap sold to a meat department or butcher for containment of the
individually wrapped or contained meat.
(3)bags used to contain loose fungible goods such as fruits, vegetables, and other products
sold in bulk, where such bags or containers are ncccssary USED to contain and measure
the amount purchased by the customer.
(4)SHOPPING BAGS AND SIMILAR MERCHANDISING BAGS SOLD TO GROCERY
STORES, DEPARTMENT STORES OR OTHER RETAILERS.
(5)GIFT WRAPPINGS AND GIFT BOXES SOLD TO DEPARTMENT STORES OR OTHER
RETAILERS.
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(b)Sales of NON -RETURNABLE OR DISPOSABLE PAPER (AND SIMILAR PRODUCTS SUCH
AS PLASTIC OR STYROFOAM) CUPS, LIDS, PLATES, BAGS, NAPKINS, STRAWS, KNIVES,
FORKS AND OTHER SIMILAR FOOD ACCESSORIES TO A RESTAURANT OR OTHERS
TAXABLE UNDER SECTION 8A-455 FOR TRANSFER BY THE RESTAURANT TO ITS
CUSTOMER TO CONTAIN OR FACILITATE THE CONSUMPTION OF THE FOOD, DRINK
OR CONDIMENT ARE SALES FOR RESALE AND NOT TAXABLE.eentainersr -ether-thaR
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24
(c)Where a retailer it ..poses a charge for gift wrapping and the charge includes the container,
paper, and other appropriate materials, the wrapping charge shall be considered a--difeet
eustenler--sefviee-and-Ret a sale.
(e)(d) 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)(e) 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.
Section 27.Regulation 8A-465.4 of the Apache Junction City Tax Code is amended to read:
Reg. 8A-465.4. (Aesop/ed) RETAIL SALES: AIRCRAFT ACQUIRED FOR USE OUTSIDE THE
STATE.
"AIRCRAFT ACQUIRED FOR USE OUTSIDE THE STATE"MEANS AIRCRAFT, NAVIGATIONAL
AND COMMUNICATION INSTRUMENTS,AND OTHER ACCESSORIES AND RELATED
EQUIPMENT SOLD TO:
(a)ANY FOREIGN GOVERNMENT FOR USE BY SUCH GOVERNMENT OUTSIDE OF THIS
STATE.
(b)PERSONS WHO ARE NOT RESIDENTS OF THIS STATE AND WHO WILL NOT USE SUCH
PROPERTY IN THIS STATE OTHER THAN IN REMOVING SUCH PROPERTY FROM THIS
STATE.THIS SUBSECTION ALSO APPLIES TO CORPORATIONS THAT ARE NOT
INCORPORATED IN THIS STATE,REGARDLESS OF MAINTAINING A PLACE OF
BUSINESS IN THIS STATE,IF THE PRINCIPAL CORPORATE OFFICE IS LOCATED
OUTSIDE THIS STATE AND THE PROPERTY WILL NOT BE USED IN THIS STATE OTHER
THAN IN REMOVING THE PROPERTY FROM THIS STATE.
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