HomeMy WebLinkAboutRES 14-46RESOLUTION NO. 14-46
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
MODIFYING ITS AUDITING AUTHORITY.
WHEREAS, in 1979,the City of Apache Junction ("City") and
the Arizona Department of 'Revenue ("DOR")entered into an
intergovernmental agreement -("IGA")allowing City to collect
transaction privilege taxes; and
WHEREAS,in 1988,the City passed two resolutions
(Resolution Nos. 88-10 and 88-28)which established the City's
authority for audits,storage and destruction of confidential
tax information; 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 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 facilitate the auditing
responsibilities for cities and towns; and
WHEREAS, DOR and City are still negotiating a comprehensive
IGA in accordance with the modified statutory provisions and
desire to enter into this modification to the IGA in order to
provide an interim method for disclosure of information and
audits until the comprehensive agreement is completed and
executed; and
WHEREAS, consequently, because of the administrative delay,
DOR and the City desire City to retain the ability to conduct
tax audits and disclose tax information for those persons and
entities who engage in taxable activities in the City at least
through January 1, 2016; and
RESOLUTION NO. 14-46
PAGE 1 OF 2
WHEREAS,the Parties -are -authorized to enter into the
attached IGA 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 "Modification to
Intergovernmental Agreement Between the State of Arizona
and the city of Apache Junction ,for Transaction Privilege
Tax Audits", 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 Itok4.DAY OFI)p c0 , 2014.
SIGNED AND ATTESTED TO THIS 1104:v\DAY OF np_corr4s,r-2014.
1 d t _di
N'ALACO
' ayor
ATTEST:
KATHLEEN CONNELLY
City Clerk
APPROVED AS TO FORM: .
RICHARD J. J. STERN
City Attorney
RESOLUTION NO. 14-46
PAGE 2 of 2
ATTACHMENT A
MODIFICATION TO INTERGOVERNMENTAL AGREEMENT BETWEEN
THE STATE OF ARIZONA AND CITY OF APACHE JUNCTION FOR
TRANSACTION PRIVILEGE TAX AUDITS
RECITALS
A.The Arizona Department of Revenue, ("DOR") and City of Apache
Junction ("City") entered into successive intergovernmental agreements
("IGA"s), the latest being in 2008, regarding the administration of taxes imposed
by the State or City.
B. The Arizona Legislature has enacted legislation amending the
provisions of A.R.S. § 42-6001 et seq.that take effect January 1,2015.
C.DOR and City are negotiating a comprehensive IGA in accordance
with the modified statutory provisions and enter into this modification to the IGA
in order to provide an interim method for disclosure of information and audits
until the comprehensive agreement is completed and executed.
AGREEMENT
The Parties agree to modify the IGA as follows effective January 1, 2015:
1. Additional Disclosure of Information by Department of Revenue to City.
In addition to the information set forth in the IGA, and subject to the same
constraints outlined in the IGA, DOR shall provide to the City information
relating to transaction privilege tax, use tax, severance tax, jet fuel excise
and use tax and any other tax colleced by DOR on behalf of any jurisdication
if the information relates to a taxpayer who is or may be taxable by a county,
city or town or who may be subject to audit by DOR pursuant to A.R.S. § 42-
6002.
2. Audits. DOR shall administer the audit functions for the City's taxpayers in
accordance with the following provisions.
2.1 Standards: All audits shall be conducted in accordance with standard
audit procedures defined in the DOR audit manual.
2.2 Training: All auditors shall be trained in accordance with the policies
of DOR.
2.3 Conflict of Interest:An auditor that is trained and authorized to
conduct an audit may not represent any taxpayer in any tax matter.
2.4 Single City Audits: City may conduct an audit of a taxpayer that is
engaged in business only in City.Before commencing such audit,
City shall notify DOR.
2.5 Other Audits:DOR shall conduct all audits of taxpayers that have
locations in two or more cities or towns unless DOR expressly
authorizes City to conduct such an audit.
2.6 Jurisdictions Included in Audit: All audits shall include all taxing
jurisdictions in this State regardless of which jurisdiction conducts
the audit.
2.7 Assessments: DOR shall issue all audit assessments on behalf of all
taxing jurisdictions in a single notice to the taxpayer.
2.8 Appeals: Appeals of audit assessments shall be directed to DOR and
shall be administered pursuant to A.R.S. § 42-1251 et seq.
2.9 Notice: DOR shall notify City before entering into any compromise,
closing, settlement or other agreement with a person related to the
tax levied and imposed by City.
3.Merger.All other terms of the IGA not in conflict with this modification or
the statutory amendments remain in full force and effect until the IGA is
terminated.
4. Signature Authority.
31.1 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.
31.2 This IGA may be executed in counterparts.
ARIZONA DEPARTMENT OF REVENUE:
By:
Its:
CITY OF APACHE JUNCTION, ARIZONA, an
Arizona municipal corporation:
By: John S. Insalaco
Its: Mayor
2
ATTEST:
By:
Kathleen Connelly, City Clerk
APPROVAL AS TO FORM
Attorney General document no., which is an agreement
between public agencies, has been reviewed pursuant to A.R.S. § 11-952 by the
undersigned Assistant Attorney General who has determined that it is in proper
form and is within the powers and authority granted under the laws of the State
of Arizona to the Arizona Department of Revenue represented by the Attorney
General.
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
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