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HomeMy WebLinkAboutRES 14-45RESOLUTION NO. 14-45 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA,AUTHORIZING THE CITY OF APACHE JUNCTION TO ENTER INTO AN INTERGOVERNMENTAL AGREEMENT WITH THE ARIZONA DEPARTMENT OF REVENUE ALLOWING THE CITY TO CONTINUE MUNICIPAL TRANSACTION PRIVILEGE TAX LICENSING SERVICES. WHEREAS,starting in 1979,the City of Apache Junction ("City")exercised its authority to collect transaction privilege taxes from individuals and private entities whose business activities were subject to A.R.S.Title 42 taxation; and WHEREAS,in 2013,the Fifty -First Arizona Legislature adopted House Bill 2111,which proposed an "integrated, coordinated and uniform system of tax administration and revenue collection"for the state including a coordinated method of collecting state and municipal transaction privilege and affiliated excise taxes by January 1, 2015; and WHEREAS, the legislature also provided for a single point of licensing by the Arizona Department of Revenue ("DOR")for all state, county and municipal taxing jurisdictions; and WHEREAS,despite the directive in the new law,at this time,DOR is not able to begin issuing annual municipal privilege tax licenses and tax license renewals to persons who engage in taxable business activities in the City; and WHEREAS, because of the administrative delay, DOR and City desire City to retain the ability to process transaction privilege license applications and issue municipal transaction privilege licenses for those persons who engage in taxable activities within the City at least until January 1, 2016; and WHEREAS,the Parties are authorized to enter the attached intergovernmental agreement pursuant to A.R.S. § 11-952. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION ARIZONA, AS FOLLOWS: The Council hereby approves, and the Mayor is authorized to execute,what has been labeled as "Intergovernmental Agreement Between the Arizona Department of Revenue and the City of Apache Junction for Continuation of Municipal RESOLUTION NO. 14-45 PAGE 1 OF 2 Transaction Privilege Tax License Services",a copy of which is set forth in "Attachment A". PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA, THIS 1644.DAY OFnp(Do 2014. SIGNED AND ATTESTED TO THIS (1044.1 DAY OF netar 2014. ATTEST: KATHLEEN CONNELLY City Clerk APPROVED AS TO FORM: ct RICHARD J. J. STERN City Attorney RESOLUTION NO. 14-45 PAGE 2 of 2 ATTACHMENT A INTERGOVERNMENTAL AGREEMENT BETWEEN THE ARIZONA DEPARTMENT OF REVENUE AND THE CITY OF APACHE JUNCTION FOR CONTINUATION OF MUNICIPAL TRANSACTION PRIVILEGE TAX LICENSING SERVICES Pursuant to A.R.S.§ 42-1004, this Agreement is developed and entered into by and between the Arizona Department of Revenue ("DOR") and the City of Apache Junction ("City"), both collectively referred to as the "Parties". RECITALS A. Due to changes in State law in Title 42, as of January 1, 2015, DOR will be responsible for issuing annual municipal privilege tax licenses and tax license renewals to persons who engage in a taxable business activity within City. B. DOR is not able to begin licensing such persons at this time. C. City has the ability to process applications and issue municipal privilege tax licenses to persons who engage in a taxable business activity in City. AGREEMENT THEREFORE the Parties agree City shall perform municipal licensing services on behalf of DOR as follows: A. SCOPE OF SERVICES 1.For persons who engage in a business activity in City that require a municipal privilege tax license, City will process the municipal privilege tax license application,issue the municipal privilege tax license, and renew such license for calendar year 2015. 2. Upon application for a municipal privilege tax license, City may charge persons who will be engaged in a taxable business activity in City a fee as specified in A.R.S.§42-5005(6),effective January 1, 2015.For persons who apply for a license renewal, City may charge a municipal privilege tax license renewal fee as specified in A.R.S. § 42-5005(0), effective January 1,2015.All fees collected pursuant to this section shall be in accordance with A.R.S. § 42-1001 et seq. 3. City shall provide DOR with licensing information for all persons who obtain a new municipal privilege tax license and/or renew their municipal privilege tax license under the terms of this Agreement. 4.To the extent required by City to perform licensing services under this Agreement,DOR shall provide City with licensing information.Any information provided by DOR shall be treated as confidential pursuant to A.R.S. § 42-2001. 1 5.Nothing in this Agreement shall be interpreted to limit or preclude the City's ability to do what is otherwise authorized by law. B. FINANCING City shall be responsible for, and shall not charge DOR a fee for, the expenses incurred for the services City provides to DOR under this Agreement.All fees collected by City under the terms of this Agreement are the property of the City and shall be retained by City. C. DURATION This Agreement is entered into and is effective on the date it is executed by both Parties and shall expire December 31, 2015 unless terminated earlier by the mutual written agreement of the Parties. D. GENERAL TERMS AND CONDITIONS 1. This Agreement is subject to cancellation under A.R.S. § 38-511, cancellation of State contracts. 2.Pursuant to A.R.S. §§ 35-214, 35-215 and 41-2548, the Parties must keep all books, accounts, reports, files and other records relating to this Agreement for a period of five (5) years after the completion of this Agreement. All records shall be subject to inspection and audit by the State at all reasonable times. 3.To the extent required by A.R.S. §§ 12-1518(B) and 12-133, the Parties agree to resolve any dispute arising out of this Agreement by arbitration. 4.The Parties agree to comply with Arizona Executive Order No. 2009-09 and any other Federal or State laws relating to equal opportunity and non- discrimination, including the Americans with Disabilities Act. 5. This Agreement may be amended or modified by written agreement approved and executed by DOR and City. 6. Nothing in this Agreement shall be construed as limiting or expanding the statutory responsibilities of Parties or as requiring the Parties to expend any sum in excess of its appropriations. E. NOTICES All notices regarding this Agreement shall be sent to the following addresses: DOR:Arizona Department of Revenue Audit Division/Cities Unit 1600W. Monroe Phoenix, AZ 85007 2 City:City of Apache Junction City Clerk's Office 300 E. Superstition Blvd. Apache Junction, AZ 85119 By signing below, the signer certifies that he or she has the authority to enter into this Agreement and has read the foregoing and agrees to accept the provisions herein. ATTEST: By: Kathleen Connelly, City Clerk ARIZONA DEPARTMENT OF REVENUE: By: Printed Name: Title: Date: CITY OF APACHE JUNCTION, an Arizona municipal corporation: By: John S. Insalaco, Mayor Date: 3 COUNSEL APPROVAL AS TO FORM: I have read this Agreement and have determined such Agreement is in proper form and is entered into within the powers of and authority granted under the laws of the State of Arizona. , Assistant Attorney General Date I have read this Agreement and have determined such Agreement is in proper form and is entered into within the powers of and authority granted under the laws of the State of Arizona. Richard J. Stern, City Attorney Date 4