HomeMy WebLinkAboutORD1562 ORDINANCE At CE NO, 1562
AN ORDINANCE ANCEf OF THE MAYOR AND CITY COUNCIL CN THE CITY
OF APACNE JUNCTION, ARI ONA, RELATING TO THE TRANSACTION
PRIVILEGE LICENSE TAX, COMMONLY KNOWN AS T "SALES
TAX"; AMENDING ING THE TAX CODE OF THE CITY OF APACHE
JUNCTION BY CONTINUING THE RATE OF TAXATION N BY TWO-
TENTHS CP ONE PERCENT ( , %) AS ORIGINALLY' ADOPTED BY
ORDINANCE INANCE NO. 1129 AND CONTINUED Efl Y ORDINANCE NO. 1359
AND ORDINANCE NO. 1.418; DESIGNATING THE; PURPOSE FOR
MANDATORY A'TORY PAYMENTS TO THE PUBLIC SAFETY PERSONNEL
L
RETIREMENT N` SYSTEM AND UNFUNDED LIABILITY RELA,rED TO THE
SAME; DESIGNATING NA`IING AN EFFECTIVE DATE; DESIGNATING ING A
TERMINATION DATE,, COMMONLY KNOWN AS THE "SUNSET CLAUSE"
PROVIDING FOR EXISTING CONTRACTS; PROVIDING FOR
PENALTIES; REPEALING ANY CONFLICTING PROVISIONS;
PROVIDING ING FOR S V 1 ILI"TY, AND PROVIDING FOR NOTICE.
WHEREAS, Arizona Revised Statutes § 9-240 (B) (26) conveys upon
the mayor and city council the power to leery taxes including a
transaction privilege license tax (also known as the "sales tax")
and
WHEREAS, up until September 1 2000, the City of Apache
Junction had a sales tax rate of 2 . 0 and
WHEREAS, to build critical capital facilities including i t
rodeo ground and events center, library expansion, skate pack,
scrim center, court, city hall and multigenerational = recreation
center, the city council can May lea, 2000, passed Ordinance No.
1129 which increased the sales tax rate to 2. 2% with a sunset
provision of September 1, 2010; and
WHEREAS, to address financial challenges due to resulting
effects of the 2008 recession, the city council voted to continue
the sales tax at this additional 0.2% rate until September 1, 2016,
y passing Ordinance No. 1359 on Mardi :1., 2010; and
WHEREAS, on November 17, 2015, to fund escalating mandatory
payments to the Arizona Public Safety Personnel Retirement System
"PSPRS" and unfunded liability related to the same, the mayor
and city council, passed Ordinance ce No. 1418 which continued the
7. 2 sales tax increase; and
WHEREAS, during fiscal year 2024, PSPRS mandatory
contributions and unfunded" liability debt service payments
collectively totaled $3. 5 million o for public safety offices, while
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revenues frorn the # sales tax dedicated to the same were
million; and
WHEREAS, having no municipal property tax, the City of Apache
Junction relies predominantly upon sales tax revenues to provide
basic cityservices; and
WHEREAS, the mayor and city council have determined that the
continuation of the two-tenths of one percents .2%) transaction
privilege license tax (sales tax) is necessary to sustain the
quality of life for community ty residents and enhance the public
health, safety and welfare; and
WHEREAS, at the regular city council meeting of November 5,
2024, the mayor and city council provided unanimous direction to
staff to prepare are ordinance for a continuation of this . sales
tam in compliance with state law and the model city tax code; and
WHEREAS, changes to the transaction privilege tax rate are
affect b1 am erdin the 'fax Code of the Cit cad Apache Junction,
and by appropriate notification to city taxpayers, the Ar1,7ona
Department of Revenue, and the Municipal 'fax Cade -Commission; and
WHEREAS, ars giant to A.R. S. 9. 1rv5, the City provided
sixty-day written notice of the proposed sales tax continuation on
the City's website r ache un tiona .g v 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 APACHE JUNCTION, ARIZO A, AS FOLLOWS:
SECTION I IN GENERAL
A. The tax .rate to each of the following sections of the city tax
code is continued at the rate of two and two-tenths percent
, in addition to 0. % continuation for road improvement
projects impo5ed under Ordinance No. 15 1 :
Section 01 Advertising
Section 1 Amusement, exhibitions, and similar
activities
Section 91.5 Construction contracting:ct:zng¢ construction
contractors
Section 8A-016 Construction contracting: speculative
builders
ORDINANCE NO. 152
PAGE - CAE"
Section BA-037 Construction contracting: owner-builders
who are not speculative builders
Section 8A-116 Feed at wholesale
Section 8 - 318 Job printing
Section 8a -C 7 Manufactured actured buildings
Section 8A-020 Timbering and other extractions
Section 8A-009 Publishingand periodicals distribution
Section 8A-044 Hotels
Section 8 _1 4 Additional tax upon transient lodging
Section 8A-214 Rental, leasing and licensing use
of tangible personal property
Section 8A-011 Restaurants and bars
Section 8A-062 Food for home consumption
Section 8 315 MRRA Amount
Section 8A-006 Transporting rtin for hire
Section 8A-029 Use Tax Purchases
Section 8 -038 Use Tax From Inventor
Section 8 - 03 Medical Marijuana Retail Sales
Section 8 - 0 Adult Use Marijuana Retail Sales
. The tax rate in the following sections of the city tax code
is continued at the rate of three and two-tenths percent
(3. 2%) , in addition to 0. 2% for .toad improvement projects
imposed, under Ordinance No. 151 m
Section 8A-005 Telecommunications services
Section 8A-004 Utility services
Section 8 -11,7 of the city tax code is amended 'to read as
follows:
Section 8 --117w Retail sales: measure of tax; burden of proof,
exclusions ;
(a) The tax rate shall be at the amount equal to two and two
-tenths percent ( .3%) of the cross income from the
business activity upon every person engaging or
continuingn the business of selling ers n 1. property
at retail, plus another 0.2% continuation for road
improvement projects imposed under Ordinance No. 1561 .
(b) The burcen, of proving that a sale of tangible personal
property is not a taxable retail sale shall be upon the
person who made the sale.
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cj Exclusions: 'sr the purpose of this Chapter, sales of
tangible personal property shall not include:
sales of stacks, bonds, options s r ether similar
materials
( sales of lottery tickets or shares pursuant to
Article 1 Chapter ter 5 Title 5, Arizona Revised
Statutes .
( 3) sales of platinum, bullion or monetized bullion,
except ra inted or manufactured coins transferred or
acquired primarily for their numismatic value as
prescribed by regulation.
4) gross income e derived from the transfer of tangible
personal property which is specifically included as
the grass incase of a business activity upon which
another Section of this article imposes a tax, shall
be considered grass income of that business
activity, and are not included as gross income
subject to the tax imposed by this Section,
5 sales by professional or personal service
occupations ations where such sales are inconsequent:iaal
elements of the service provided.
d Notwithstanding the provisions of subsection {a) above,
when the gross income from the sale of a single item of
tangible personal property exceeds two thousand dollars
($2, 000) , the extended two and four-tenths . % fax
rate, shall apply to the first $2, 000. Above $ , 000, the
measure of tax shall be at a rate of one and four-tenths
percent (1 .4%)
d When this city; and -another Arizona city or teen with an
equivalent excise tax could cl.ai.m a nexus for taxing a
retail sale, the city or' town where the permanent
business location n of the seller at which the order was
received small be deeined to have precedence, and for the
purpose se 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 town of such seller' s
location.
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(g) Retail sales of prepaid calling cards or prepaid
authorization numbers for telecommunication services,
including sales of reauthorization of a prepaid card or
authorization number, are subject to fax under this
section
SECTION II DESIGNATING THE PURPOSE
For such period of time that the City of Apache Junction, Arizona,
levies the tax as described in Section I above, the revenues
collected from the two-tenths of one percent .2 continuation
shall be used for mandatory payments to the Public Safety Personnel
Retirement System and unfunded liability related to this system.
SECTION III DESIGNATING AN EFFECTIVE ELATE
The provisions of this ordinance continuing the tax rate of . 2%
for the purpose. set forth in Section II above shall become
effective on September ber 2 2026.
SECTION IV DESIGNATING TERMINATION DATE
The provisions of this ordinance continuing the tax rate of
for the purpose set forth in Section II above shall. terminate, or
"sunset" on September 1 2036, at which time the increased tax
rate as set forth in Section I of this ordinance sell
automatically be reduced by two--tenths of one percent d % a
SECTION V PROVIDING FOR EXISTING CONTRACTS
The tax imposed pursuant to this ordinance shall not apply to
contracts entered into twig to the effective date of the tag: as
set forth In Section III above.
SECTION VI PROVIDING FOR PENALTIES
S
Any person found guilty of violating any prevision of these
amendments to the tax cede shall be guilty of s class one
misdemeanor and shall be prosecuted pursuant to Article 1 of the
A he unctien City C and Section -58 of the Tax Cede of
the Czty et Aashe Iucticara 4
SECTION II REPEALING ANY CONFLICTING PROVISIONS
ORDINANCE NO. 1562
All rdin nc and parts of ordinances in conflict with the
provisions of this ordinance or any part of the coder adopted
herein by reference are hereby repealed.
SECTION VIII PROVIDING FOR SEVERABILITY
If any "section, subsection, sentence, phrase, clause or portion of
this rdin nc is for any reason held to be invalid or
unconstitutional by the decision of any count of competent
jurisdiction, such decision shall not affect the validity of :the
remaining portions thereof.
SECTION IX PROVIDING FOR NOTICE
Pursuant to A.R. S. § 42-6052e, staff shall provide a fully executed
copy of this ordinance to the Municipal Code l ion and
the Arizona-Department of Revenue within ten days after the passage
date of this ordinance.
SIGNATURES ARE ON PAGE ` OF 7
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PASSED AND ADOPTED BY THE MAYOR A�� CITY COUNCIL OF THE CITY OF
APACHE JUNCTION, ARIZONA, THIS DAY Of- a
SIGNED AND ATTESTED TO THIS KI DAYC
Mayor
ATTEST:
OETTE MCKINN�EY
Acting City Clerk
APPROVED AS TO OR
- 44 %- 15-26
RIC CAR 3 JOEL STERN
City Attorney
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