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HomeMy WebLinkAboutORD1561 ORDINANCE NO, 156 AN ORDINANCE I ANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF A 'ACHE JUNCTION, ARIZONA, RELATING TO THE NS CTI [ PRIVILEGE LICENSE TAX, COMMONLY KNOWN AS THE "SALES "1°€°"X"'; AMENDING THE TAX CODE OF THE CITY OF APA HE JUNCTION CONTINUING THE RATE OF TAXATION BY 'TWO- TENTHS OF CITE PERCENT e % AS ORIGINALLY INALL ADOPTED ORDINANCE NO. I406 DESIGNATING ATING THE PURPOSE FOR MAINTENANCE, REPAIR, DESIGN, CONSTRUCTION CTIO AND REPLACEMENT OF PUBLIC RIGHT-OF-WAYS; DESIGNATING AN EFFECTIVE DATE; DESIGNATING ATIN A TERMINATION DATE, COMMONLY KNOWN AS THE "SU SET CLAUSE°", PROVIDING G FOR EXISTING CONTRACTS; PROVIDING ING OR PENALTIES; REPEALING All CONFLICTING PROVISIONS; PROVIDING FOR SE 'ERA ILIT ', AN PROVIDING FOR NOTICE. WHEREAS, Arizona Revised Statutes § - 4 1 (S) conveys upon the mayor and city council the power to lever taxes including a transaction privilege license tax (also known as the ,"sales tax") ; and WHEREAS, the City of Apache Junction relies heavily on stake-- shared highway uses revenue funds "HURF" ) to pay for design, repair, construction, replacement and continuing maintenance for city roads; and WHEREAS, since fiscal year - 07, the stare has legislatively reduced HER ' dollars to cities and towns; and WHEREAS, the costs to make the maintenance, repairs, design, construction and replacement end are escalating at a rapid rate each passing year; and WHEREAS, having no city property tax, the Cite of Apache Junction relies primarily upon sales tax revenues to pay for these costs; and WHEREAS, the mayor and city council: have determined that a continuation of the two-tenths of one percent .2% transaction privilege license e a , is necessary to sustain the quality of the transportation grid system for community residents and visitors and enhance the public health, safety and welfare; and WHEREAS,;A: , at the regular city council meeting of November 5, 2024, the mayor and cite council provided unanimous direction to ORDINANCE NO. 1561 PACE 1 OF staff to prepare an ordinance for a continuation of this . 2 sales tax in compliance with state law and the model city tax code and WHEREAS, changes to the transaction privilege tax rate are affected by amending the Tax ode of the City of Apache Junction, and by appropriate notification to city taxpayers, the Arizona Department iartment of Revenue, and the Municipal ipal Tax Code Commission; and. WHEREAS, pursuant to A.R. S. § 9-499. 15, the City provided sixty-day written notice of the proposed sales tag; continuation on the C ity' s website w a apache unctiona a goer) before the date of the public hearing, January 21, 2025, when this ordinance is to be considered. NOW THEREFORE, BE IT ORDAINED By THE MAYOR AND CITY COUNCIL OF THE CITY OF A 'AC HE JUNCTION,"ION, CA A, AS FOLLOWS: SECTION I IN GENERAL A. The tax rate in each of the following sections of the city tax code is continued at the rate of two and two-tenths percent {2 .2% , in addition to 0 . 2% continuation for expenses related to the Public is Safety Personnel, Retirement ent System "PSPRB" imposed under Ordinance Nos. 1418 and 2 Section 8A-018 Advertising Section A-012 Amusement, exhibitions, and similar activities Section A 015 Constructioncontracting: construction contractors Section A 016 Construction contracting: speculative builders Section A-037 Construction contracting: owner-builders who are not speculative builders Section A 11 S Feed at wholesale male Section 8A-010 Job printing Section, A027 Manufactured buildings Section A C 20 Timbering and other extractions Section 8A-009 Publishing and periodicals distribution Section A 44 Hotels Section A-144 Additional tax upon transient lodging Section A-214 Rental, leasing and licensing for use of tangible per"sonal property Section 3A-011 Restaurants and bars Section 8A-062 Food for hone consumption Section A-215 MRRA Amount ORDINANCE NC« . 1561 PAGE 2 OF 7 Section 6 6 Transporting for hire Section 8A-029 Use Tax Purchases Section 8A-03 se Tax From Inventory Section 6 2 3 Medical Marijuana Retail Sales Section 20 Adult Use Marijuana Retail Sales . 'the tax rate it the following sections of the city tax code is continued at. the rate of three and two-tenths percent 3s 2 ) , in addition to 0.2% continued for expenses related to PSPRS imposed under Ordinance Nos. 1413 and 1 62 Section 8A-005 Telecommunications services Section 8A-004 Utility services � Section 8A-017 of the city tax cede is amended to rasa as follows: Section 3 --C117. Retail sales; measure of tax; Burden of proofs exclusions The tax rate shall be at the amount equal to two and two -tenths percent 3. 2% of the gross income from the business activity upon every person engaging or continuing in the business of selling personal property t retail plus another 0.2% continued for expenses �related to PSPR6 imposed under Ordinance teas. 1418 and 1,562. (b) The burden of proving that a sale of tangible personal property is not a taxable retail sale shall be upon the person who made the sale. tc Exclusions: For the purpose of this Chapter, sales of tangible personal property shall not include. 1 sales: of stocks, bonds, options s or ether similar materials. ( sales of lottery tickets or shares pursuant to Article 1, Chapter 5, Title 5, Arizona Revised Statutes 3? sales of platinum, bullion or monetized bullion, except sainted or manufactured :coins transferred or acquired primarily for their numismatic value as prescribed by regulation. gross income derived from the transfer of tangible personal property which is specifically included as the dross income of a business activity upon which ORDINANCE NO. 1561 PAGE 3 OF another Section of this article imposes a tax, shall e considered gross income of that business activity, and are not included as grass income subject to the tax imposed by this Section. sales by professional or personal service occupations where such: sales are inconsequential elements of the service provided. (d) Notwithstanding the previsions of subsection a)_ above, when the gross income from the sale of a single item of tangible personal property exceeds two thousand dollars { , g , the extended two and four-tenths a tax late, shall apply to the first $2, 000. Above $2, 000, the measure of tax shail be at a rate of one and four-tenths percent l b ) , e When this city and another Arizona city or town with an equivalent excise tax could claim a nexus for taxing a retail sale, the city or teen where the permanent business location of the seller at which the order was received shall e deemed to have precedence, and for the purpose of this chapter such city or town has sole and exclusive rights to such tax. The appropriate tax liability for any retail sale where the order is received at a permanent business location of the seller located in this city or in an Arizona city or town that levies an equivalent excise tax shall be at the tax rate of the city or teen of such seller' s location. g Retail sales of prepaid calling cards or prepaid authorization numbers for telecommunication services, including salea of reauthorization of a prepaid card or authorization number, are subject to tax under this section. SECTION it DESIGNATING THE PURPOSE For such period of time that the pity of Apache Junction, Arizona, levies the tax as described in Section l above, the revenues collected from the two--tenths of one percent � . ° continuation ORDINANCE NO. 1561 PAGE 4 OF 7 shall be used for maintenance, repair, design, construction and replacement of public right-of-ways. SECTION III DESIGNATING AN- EFFECTIVE DATA The provisions of this ordinance continuing the tax rate of . % for the purpose set forth in Section II above shall become effective on March 2, 2025 SECTION IV DESIGNATING A TERMINATION DATE The previsions of this ordinance continuing the tax rate of .:'fix for the purpose set forth in Section II :above shall terminate, or %sunset" can March I , 2035, at which time the increased tag; late as set forth in Section I of this ordinance shall automatically be reduced by two-tenths of one percent * % SECTION V PROVIDING FOR EXISTING CONTRACTS The tam imposed pursuant to this ordinance shall not apply t contracts entered into prier to the effective date: of the tax as set: forth in Section III above SECTION VI PROVIDING FOR PENALTIES Any person found guilty of violating any provision of these amendments s to the tax code shall be guilty of a class one misdemeanor demeano nd shall e prosecuted pursuant to Article 1-8of the he un tion C its o e and Section 8A-580 of the Tax Code of the C;itol ache Junction. SECTION II REPEALING ANY CONFLICTING PROVISIONS All ordinances and parts of ordinances in conflict with the provisions of this ordinance or any part of the codes adopted herein by reference are hereby repealed. SECTION VIII PROVIDING FOR SEVERABILITY It any section, subsection, sentence, phrase, clause or portion o this ordinance is for any reason hold 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. ORDINANCE O. 1561 PAGE 5 Off' SECTION IX PROVIDING FOR NOTICE Pursuant to A.R.Ss § 42-6052C, staff shall provide a fully executed copy of thisordinance n the Municipal Tax Code Commission and the Arizona Department of Revenuewithin ten days after the passage date of thisd na d SIGNATURES ARE ON PAGE 7 OF 7 ORDINANCE NO. 1561 PAGE 6 Off' PASSED AND ADOPTED BY THE MAYOR AN� CITY COUNCIL OF THE CITY OF P7 CHE JUNCTION, ARIZONA, THIS 7 0 � SIGNED ATTESTED I ;47- Z-V*4 L4 2025 IS DAY OF 4 ' VeA- WELTER ""CHIP"' WI:LSO Mayer ATTEST: 2YOEOTTE I C IN Actin l�City C APPROVED AS TO FORM: 4 f- tit 5.2.5 RICHARD JCR ., STERN City Attorney ORDINANCE NC, 1561 PACE 7 Off'