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2002 AMENDMENTS TO THE TAX
CODE OF THE CITY OF WILLCOX
Section 1. Section 3.08-100 of the Tax
Code of the City of Willcox is amended to read:
Sec. 3.08.100. 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 Article III, Chapter 6, 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 offices,
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 Contracting"
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 except for remediation contracting. This definition shall govern
without regard to whether or not the construction contractor is acting
in fulfillment of a contract.
"Delivery (of Notice) by the Tax
Collector" means "receipt (of notice) by the taxpayer".
"Delivery, Installation, 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.
"Engaging", 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 Government 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
42-5106. 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.
"Jet Fuel" means jet fuel as
defined in A.R.S. Section 42-5351.
"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.
"Lodging (Lodging 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.
"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.
"Mining and Metallurgical
Supplies" means all tangible personal property acquired by persons
engaged in activities defined in Section 3.08.432 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.
"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.
"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, insulin syringes, and glucose test strips 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.
(6) durable medical equipment which has a federal health care financing
administration common procedure code, is designated reimbursable by
Medicare, can withstand repeated use, is primarily and customarily used
to serve a medical purpose, is generally not useful to a person in the
absence of illness or injury and is appropriate for use in the home.
"Qualifying Community Health
Center"
(a) means an entity that is recognized as nonprofit under SECTION
501(c)(3) of the United States Internal Revenue Code, that is a
community-based, primary care clinic that has a community-based board of
directors and that is either:
(1) the sole provider of primary care in the community.
(2) a nonhospital affiliated clinic that is located in a federally
designated medically underserved area in this State.
(b) INCLUDES CLINICS THAT ARE BEING
CONSTRUCTED AS QUALIFYING COMMUNITY HEALTH CENTERS.
"Qualifying Health Care
Organization" means an entity that is recognized as nonprofit under
Section 501(c) of the United States Internal Revenue Code and that uses,
SAVES OR INVESTS at least eighty percent (80%) of all monies that it
receives from all sources each year only for health and medical related
educational and charitable services, as documented by annual financial
audits prepared by an independent certified public accountant, performed
according to generally accepted accounting standards and filed annually
with the Arizona Department of Revenue. MONIES THAT ARE USED, SAVED OR
INVESTED TO LEASE, PURCHASE OR CONSTRUCT A FACILITY FOR HEALTH AND
MEDICAL RELATED EDUCATION AND CHARITABLE SERVICES ARE INCLUDED IN THE
EIGHTY PERCENT (80%) REQUIREMENT.
"Qualifying Hospital" means ANY
OF THE FOLLOWING:
(1) a licensed hospital which is organized and operated exclusively for
charitable purposes, no part of the net earnings of which inures to the
benefit of any private shareholder or individual.
(2) a licensed nursing care institution or a licensed residential care
institution or a residential care facility operated in conjunction with
a licensed nursing care institution or a licensed kidney dialysis
center, which provides medical services, nursing services or health
related services and is not used or held for profit.
(3) a hospital, nursing care institution or residential care institution
which is operated by the federal government, this State or a political
subdivision of this State.
(4) A FACILITY THAT IS UNDER CONSTRUCTION AND THAT ON COMPLETION WILL BE
A FACILITY UNDER SUBDIVISION (1), (2) OR (3) OF THIS PARAGRAPH.
"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.
"Remediation" means those
actions that are reasonable, necessary, cost-effective and technically
feasible in the event of the release or threat of release of hazardous
substances into the environment such that the waters of the State are or
may be affected, such actions as may be necessary to monitor, assess and
evaluate such release or threat of release, actions of remediation,
removal or disposal of hazardous substances or taking such other actions
as may be necessary to prevent, minimize or mitigate damage to the
public health or welfare or to the waters of the State which may
otherwise result from a release or threat of release of a hazardous
substance that will or may affect the waters of the State. Remediation
activities include the use of biostimulation with indigenous microbes
and bioaugmentation using microbes that are nonpathogenic,
nonopportunistic and that are naturally occurring. Remediation
activities may include community information and participation costs and
providing an alternative drinking water supply.
"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.
"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 personal 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 3.08.416) 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 City
Clerk or his designee or agent for all purposes under this Chapter.
"Taxpayer" means any person
liable for any tax under this Chapter.
"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 __-260 of the Tax Code
of the City of _____ is amended to read:
Sec. 3.08.260. Exclusion of fees and
taxes from gross income; limitations.
(a) There shall be excluded from gross income of vendors of motor
vehicles those motor vehicle registration fees, license fees and taxes,
and lieu taxes imposed pursuant to Title 28, Arizona Revised Statutes in
connection with the initial purchase of a motor vehicle, but only to the
extent that such taxes or fees or both have been separately itemized and
collected from the purchaser of the motor vehicle by the vendor,
actually remitted to the proper registering, licensing, and taxing
authorities, and the provisions of Article III, regarding recordkeeping,
are met. For the purpose of the exclusion provided by this subsection
only, the terms vendor and vendee shall also apply to a lessor and
lessee respectively, of a motor vehicle if, in addition to all other
requirements of this subsection, the lease agreement specifically
requires the lessee to pay such fees or taxes, and such amounts are
separately itemized in the documentation provided to the lessee.
(b) There shall be excluded from gross
income of vendors at retail of heavy trucks and trailers, the amount
attributable to Federal Excise Taxes imposed by 26 U.S.C. Section 4051,
but only to the extent that the provisions of Article III, relating to
recordkeeping, have been met.
(c) There shall be excluded from gross
income the following fees, taxes, and lieu taxes, but only to the extent
that such taxes or fees or both have been separately itemized and
collected from the purchaser by the vendor, actually remitted to the
proper registering, licensing, and taxing authorities, and the
provisions of Article III, regarding recordkeeping, are met:
(1) emergency telecommunication services excise tax imposed pursuant to
A.R.S. Section 42-5252. "Emergency telecommunication services"
means telecommunication services or systems that use number 911 or a
similarly designated telephone number for emergency calls;
(2) the telecommunication devices for the deaf and the severely hearing
and speech impaired excise tax imposed pursuant to A.R.S. Section
42-5252;
(3) federal excise taxes on communications services as imposed by 26
U.S.C. § 4251;
(4) car rental surcharge imposed pursuant to A.R.S. Section 48-4234;
(5) federal excise taxes on passenger vehicles as imposed by 26 U.S.C.
§4001(.01);
(6) waste tire disposal fees, imposed pursuant to A.R.S. Section
44-1302; lead acid battery fees, imposed pursuant to A.R.S. Section
44-1323; and used oil fees imposed pursuant to A.R.S. Section 49-814(B),
(C).
(d) There shall be excluded from gross
income of vendors of motor vehicles dealer documentation fees, but only
to the extent that such fees have been separately itemized and collected
from the purchaser of the motor vehicle by the vendor.
Section 3. Regulation 3.08-415.3 of the
Tax Code of the City of Willcox is added to read:
REG. 3.08-415.3. CONSTRUCTION
CONTRACTING; TAX RATE EFFECTIVE DATE.
A. IN THE EVENT OF A TAX RATE CHANGE, THE
RATE IMPOSED ON GROSS INCOME FROM CONSTRUCTION CONTRACTING SHALL BE
COMPUTED BASED UPON THE RATE IN EFFECT WHEN THE CONTRACT WAS EXECUTED,
SUBJECT TO THE "ENACTMENT DATE" AS DEFINED IN THIS SECTION.
GROSS INCOME FROM A CONTRACT EXECUTED PRIOR TO THE ENACTMENT DATE SHALL
NOT BE SUBJECT TO THE TAX RATE CHANGE, PROVIDED THE CONTRACT CONTAINS NO
PROVISION THAT ENTITLES THE CONSTRUCTION CONTRACTOR TO RECOVER THE
AMOUNT OF THE TAX.
B. IN THE EVENT OF A RATE INCREASE, IN
ORDER TO QUALIFY FOR THE LOWER RATE, THE CONSTRUCTION CONTRACTOR SHALL,
UPON REQUEST, PROVIDE SUFFICIENT DOCUMENTATION, IN A MANNER AND FORM
PRESCRIBED BY THE TAX COLLECTOR, TO VERIFY THAT A CONTRACT WAS ENTERED
INTO BEFORE THE ENACTMENT DATE.
C. FOR PURPOSES OF THIS SECTION,
"ENACTMENT DATE" SHALL BE:
(1) IN THE EVENT AN ELECTION IS HELD, THE DATE OF ELECTION.
(2) IN THE EVENT NO ELECTION IS HELD, THE DATE OF FINAL ADOPTION BY THE
MAYOR AND COUNCIL.
(3) NOTWITHSTANDING THE ABOVE, NOTHING IN THIS SECTION SHALL BE
CONSTRUED TO PREVENT THE CITY FROM ESTABLISHING A LATER ENACTMENT DATE.
Section 4. Regulation 3.08-415.3 of the
Tax Code of the City of Willcox is amended to read:
Reg. 3.08-520.1. Reports made to the
City.
(a) Each taxpayer shall provide, as a
minimum, all of the following when reporting taxes due as provided in
this Chapter:
(1) Legal business name of the taxpayer or his agent.
(2) Mailing address of the taxpayer.
(3) City Privilege License number of the taxpayer.
(4) Period of time for which the report is intended.
(5) For each category of income to which the taxpayer is subject, for
the reporting period, as provided on the official City tax return:
(A) All amounts subject to, excluded from, exempt from, or deductible
from the tax imposed upon that category of business activity, summarized
in total as "gross receipts" of that category of business
activity.
(B) The total amount claimed as excludable, exempted, or deducted from
such "gross receipts", itemized as provided on the official
City tax return, and summarized in total as "total deductions"
for that category.
(C) The difference between such "gross receipts" and
"total deductions" as "net taxable" for that
category.
(D) The tax due and payable for that category.
(6) That total amount subject to Use Tax, summarized as "net
taxable", and the Use Tax due and payable for that reporting
period.
(7) Any excess tax collected which is due and payable.
(8) Any claimed tax credits against taxes due and payable.
(9) Total amount remitted with the return.
(10) A statement verifying that the information provided on the return
is accurate to the best of the preparer's knowledge. Such statement must
be accompanied by a dated signature of the preparer, and also show the
preparer's title or relationship to the taxpayer.
(11) THE TAX COLLECTOR MAY PRESCRIBE AND WILL NOTIFY TAXPAYERS OF
ALTERNATIVE METHODS FOR SIGNING, SUBSCRIBING OR VERIFYING ANY REPORT OR
STATEMENT REQUIRED TO BE FILED, INCLUDING BUT NOT LIMITED TO ELECTRONIC
SIGNATURES AND/OR SECURITY CODES, AND SUCH METHODS SHALL HAVE THE SAME
VALIDITY AND CONSEQUENCE AS THE ACTUAL SIGNATURE OR WRITTEN DECLARATION
OF THE TAXPAYER OR OTHER PERSON REQUIRED TO SIGN, SUBSCRIBE OR VERIFY
THE RETURN, STATEMENT OR OTHER DOCUMENT.
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