|
|
Article 8A-5
ADMINISTRATIONSections:
8A-500 Administration of this Chapter; Rule Making
8A-510 Divulging of Information Prohibited; Exceptions Allowing Disclosure
8A-515 (Reserved)
8A-516 (Reserved)
8A-517 (Reserved)
8A-520 Reporting and Payment of Tax
8A-530 When Tax Due; When Delinquent; Verification of Return; Extensions
8A-540 Interest and Civil Penalties
8A-541 (Reserved)
8A-542 Prospective Application of New Law or Interpretation or Application of Law
8A-545 Deficiencies; When Inaccurate Return Is Filed; When No Return Is Filed; Estimates
8A-546 (Reserved)
8A-550 Limitation Periods
8A-555 Tax Collector May Examine Books and Other Records; Failure to Provide Records
8A-556 (Reserved)
8A-560 Erroneous Payment of Tax; Credits and Refunds; Limitations
8A-565 Payment of Tax by the Incorrect Taxpayer or to the Incorrect Arizona City or Town
8A-567 (Reserved)
8A-570 Administrative Review; Petition for Hearing or for Redetermination; Finality of Order
8A-571 Jeopardy Assessments
8A-572 (Reserved)
8A-575 Judicial Review
8A-577 (Reserved)
8A-578 (Reserved)
8A-580 Criminal Penalties
8A-590 Civil Actions
8A-595 Collection of Taxes When There Is Succession in and/or Cessation of Business
8A-596 (Reserved)
8A-597 (Reserved)
Section 8A-500 Administration of this Chapter; Rule Making
a. The administration of this chapter is vested in and exercised by the Town of Oro Valley, except as otherwise provided, and all payments shall be made to the Town of Oro Valley. The Town may, pursuant to an intergovernmental agreement, contract with the State of Arizona Department of Revenue for the administration of the tax. In such cases, “Tax Collector” shall also mean the Arizona Department of Revenue, when acting as agent in administering this tax.
b. The Tax Collector shall prescribe the forms and procedures necessary for the administration of the taxes imposed by this chapter.
c. Except where such regulations would conflict with administrative regulations adopted by the Town Council or with provisions of this chapter, all regulations on the transaction privilege tax adopted by the Arizona Department of Revenue under the authority of A.R.S. Section 42-1005 shall be considered regulations of this chapter and enforceable as such.
d. Taxpayers shall be subject to the State Taxpayer Bill of Rights (A.R.S. Section 42-2051 et. seq).
e. The unified audit committee shall publish uniform guidelines that interpret the model city tax code and that apply to all cities and towns that have adopted the model city tax code as provided by A.R.S. Section 42-6005.
1. Prior to finalization of uniform guidelines that interpret the model city tax code, the unified audit committee shall disseminate draft guidelines for public comment.
2. Pursuant to A.R.S. Section 42-6005(D), when the State statutes and the model city tax code are the same and where the Arizona Department of Revenue has issued written guidance, the department’s interpretation is binding on cities and towns.
((O)08-08, Added, 4/16/08)
Section 8A-510 Divulging of Information Prohibited; Exceptions Allowing Disclosure
a. Except as specifically provided, it shall be unlawful for any official or employee of the Town to make known information obtained pursuant to this chapter concerning the business financial affairs or operations of any person.
b. The Town Council may authorize an examination of any return or audit of a specific taxpayer made pursuant to this chapter by authorized agents of the Federal Government, the State of Arizona, or any political subdivisions.
c. The Tax Collector may provide to an Arizona county, city, or town any information concerning any taxes imposed in this chapter relative to the taxing ordinances of that county, city, or town.
d. Successors, receivers, trustees, personal representatives, executors, guardians, administrators, and assignees, if directly interested, may be given information by the Tax Collector as to the items included in the measure and amounts of any unpaid tax, interest, and penalties required to be paid.
e. Upon a written direction by the Town Attorney or other legal advisor to the Town designated by the Town Council, officials or employees of the Town may divulge the amount and source of income, profits, leases, or expenditures disclosed in any return or report, and the amount of such delinquent and unpaid tax, penalty, or interest, to a private collection agency having a written collection agreement with the Town.
f. The Tax Collector shall provide information to appropriate representatives of any Arizona city or town to comply with the provisions of A.R.S. Section 42-6003, A.R.S. Section 42-6005, and A.R.S. Section 42-6056.
g. The Tax Collector may provide information to authorized agents of any other Arizona governmental agency involving the allocation of taxes imposed by Section 8A-435 upon publishing and distribution of periodicals.
h. The Tax Collector may provide information regarding the enforcement and collection of taxes imposed by this chapter to any governmental agency with which the Town has an agreement.
((O)08-08, Added, 4/16/08)
Section 8A-515 (Reserved)
((O)08-08, Added, 4/16/08)
Section 8A-516 (Reserved)
((O)08-08, Added, 4/16/08)
Section 8A-517 (Reserved)
((O)08-08, Added, 4/16/08)
Section 8A-520 Reporting and Payment of Tax
a. The taxpayer shall be required to use the report form authorized by the Tax Collector and shall mail or deliver the same, together with remittance for the amount of tax due, payable to the Town of Oro Valley, to the Tax Collector or any Town representative or agent authorized to receive such payment. The tax return shall be signed by the taxpayer or his authorized agent, and such signature shall be evidence that the person signing the return verifies the accuracy of the information supplied in the return.
b. Payment. If payment is made in any form other than United States legal tender, the tax obligation shall not be satisfied until the payment has been honored in funds.
c. Requirement of Security. If a taxpayer has remitted payment in the form of a check or other form of draw upon a bank or third party and such remittance has not been honored in funds, the Tax Collector may demand security for future payments.
d. Method of Reporting. Each taxpayer shall elect to report on either a cash receipts basis or an accrual basis and shall indicate the choice on the privilege license application. A taxpayer shall not change his reporting method without receiving prior written approval by the Tax Collector.
1. Taxpayers must report all gross income subject to the tax using the same basis of reporting.
2. Taxes imposed upon construction contracting shall be reported as follows:
A. Construction contractors shall report on either a progressive billing (“accrual”) basis or cash receipts basis.
B. Speculative builders shall report the gross income derived from sale of improved real property at close of escrow or at transfer of title or possession, whichever occurs earlier.
C. Owner-builders who are not speculative builders shall report taxable amounts as provided in Section 8A-417.
((O)08-08, Added, 4/16/08)
Section 8A-530 When Tax Due; When Delinquent; Verification of Return; Extensions
a. Except as otherwise specified in this section, the taxes levied under this chapter shall be due, payable, and delinquent on the dates specified for the State Transaction Privilege Taxes in A.R.S. Section 42-5014. The taxpayer shall report on the taxes imposed by this chapter at such frequency to be identical to the taxpayer’s reporting frequency for the reporting of State Transaction Privilege Taxes.
b. (Reserved)
c. (Reserved)
d. (Reserved)
e. The Tax Collector may for good cause extend the date for making any return required under the provisions of this section as prescribed by A.R.S. Section 42-1107.
((O)08-08, Added, 4/16/08)
Section 8A-540 Interest and Civil Penalties
Any taxpayer who shall have failed to timely pay any taxes imposed by this chapter, or file a report for the same in a timely manner, or fail or refuse to allow examination of records by the Tax Collector, shall be subject to any interest or civil penalties on such tax in like manner as such interest and penalties are provided in A.R.S. Sections 42-1123 and 42-1125 for the State Transaction Privilege Tax.
a. (Reserved)
b. (Reserved)
c. (Reserved)
d. (Reserved)
e. (Reserved)
f. (Reserved)
g. (Reserved)
h. (Reserved)
i. (Reserved)
((O)08-08, Added, 4/16/08)
Section 8A-541 (Reserved)
((O)08-08, Added, 4/16/08)
Section 8A-542 Prospective Application of New Law or Interpretation or Application of Law
a. Unless expressly authorized by law, the Tax Collector shall not apply any newly enacted legislation retroactively or in a manner that will penalize a taxpayer for complying with prior law.
b. If the Tax Collector adopts a new interpretation or application of any provision of this chapter or determines that any provision applies to a new or additional category or type of business and the change in interpretation or application is not due to a change in the law:
1. the change in interpretation or application applies prospectively only unless it is favorable to taxpayers.
2. the Tax Collector shall not assess any tax, penalty or interest retroactively based on the change in interpretation or application.
c. For purposes of subsection (b), “new interpretation or application” includes policies and procedures which differ from established interpretations of this chapter.
d. (Reserved)
((O)08-08, Added, 4/16/08)
Section 8A-545 Deficiencies; When Inaccurate Return Is Filed; When No Return Is Filed; Estimates
a. If a taxpayer has failed to file a return or if the Tax Collector is not satisfied with the return or payment of tax required, the Tax Collector may redetermine the tax due, plus penalties and interest, and notify the taxpayer, as provided and prescribed by A.R.S. Sections 42-118 and 42-1108.
1. (Reserved)
2. (Reserved)
b. Estimates by the Tax Collector. Any estimate made by the Tax Collector is to be made on a reasonable basis. The existence of another reasonable basis of estimation does not, in any way, invalidate the Tax Collector’s estimate. It is the responsibility of the taxpayer to prove that the Tax Collector’s estimate is not reasonable and correct, by providing sufficient documentation of the type and form required by this chapter or satisfactory to the Tax Collector.
((O)08-08, Added, 4/16/08)
Section 8A-546 (Reserved)
((O)08-08, Added, 4/16/08)
Section 8A-550 Limitation Periods
a. Except as provided elsewhere in this chapter, deficiency assessments for the taxes imposed by this chapter must be issued within the limitation periods prescribed in A.R.S. Section 42-1104, and must meet the provisions of A.R.S. Section 42-1108.
b. (Reserved)
c. In cases of failure to file a return or a false or fraudulent return, the limitation period shall be as prescribed in A.R.S. Section 42-1109.
d. Special provisions relating to owner-builders. The limitation for an owner-builder subject to the tax as prescribed in Section 8A-417 shall be based upon the date such tax liability is reportable or was reported, as provided in Section 8A-417.
((O)08-08, Added, 4/16/08)
Section 8A-555 Tax Collector May Examine Books and Other Records; Failure to Provide Records
a. The Tax Collector may require the taxpayer to provide and may examine any books, records, or other documents of any person who, in the opinion of the Tax Collector, might be liable for any tax under this chapter, for any periods available to him under Section 8A-550.
b. (Reserved)
c. (Reserved)
d. The Tax Collector may use any generally accepted auditing procedures, including sampling techniques, to determine the correct tax liability of any taxpayer. The Tax Collector shall ensure that the procedures used are in accordance with generally accepted auditing standards.
e. The fact that the taxpayer has not maintained or provided such books and records which the Tax Collector considers necessary to determine the tax liability of any person does not preclude the Tax Collector from making any assessment. In such cases, the Tax Collector is authorized to use estimates, projections, or samplings to determine the correct tax. The provisions of Section 8A-545(b), concerning estimates, shall apply.
f. (Reserved)
((O)08-08, Added, 4/16/08)
Section 8A-556 (Reserved)
((O)08-08, Added, 4/16/08)
Section 8A-560 Erroneous Payment of Tax; Credits and Refunds; Limitations
a. Except as provided in Section 8A-565, the period within which a claim, meeting the requirements of subsection (c) of this section, for credit may be filed, or refund allowed or made if no claim is filed, shall be as provided in A.R.S. Sections 42-1106 and 42-1118. For purposes of this section, “claimant” means a taxpayer that has paid a tax imposed under this article and has submitted a credit or refund claim under this section. Except where the taxpayer has granted a customer a power of attorney to pursue a credit or refund claim on the taxpayer’s behalf, “claimant” does not include any customer of such taxpayer, whether or not the claimant collected the tax from customers by separately stated itemization.
b. (Reserved)
c. A credit or refund claim submitted by a claimant for credit or refund of any taxes, penalties, or interest paid must be in writing and:
1. Identify the name, address and city tax identification number of the taxpayer; and
2. Identify the dollar amount of the credit or refund requested; and
3. Identify the specific tax period involved; and
4. Identify the specific grounds upon which the claim is based.
d. (Reserved)
e. (Reserved)
f. Interest shall be allowed on the overpayment of tax for any credit or refund authorized pursuant to this section at the rate and in the manner set forth in Section 8A-540. Interest shall be calculated from the date the Tax Collector receives the claimant’s written claim meeting the requirements of subsection (c) of this section.
g. The denial of a refund by the Tax Collector is subject to the provisions of A.R.S. Section 42-1119.
h. Claimants shall be subject to the State Taxpayer Bill of Rights (A.R.S. Section 42-2051 et. seq.), except that reasonable fees and other costs may be awarded and are not subject to the monetary limitations of A.R.S. Section 42-2064 if the Tax Collector’s position was not substantially justified or was brought for the purpose of harassing the claimant, frustrating the credit or refund process or delaying the credit or refund. For the purposes of this section, “reasonable fees and other costs” means fees and other costs that are based on prevailing market rates for the kind and quality of the furnished services, not to exceed the amounts actually paid for expert witnesses, the cost of any study, analysis, report, test, project or computer program that is found to be necessary to prepare the claimant’s case and necessary fees for attorneys or other representatives.
i. (Reserved)
j. Any refund paid under the provisions of this section shall be paid from the privilege tax revenue accounts.
((O)08-08, Added, 4/16/08)
Section 8A-565 Payment of Tax by the Incorrect Taxpayer or to the Incorrect Arizona City or Town
a. When it is determined that taxes have been reported and paid to the Town by the wrong taxpayer, any taxes erroneously paid shall be transferred by the Town to the privilege tax account of the person who actually owes and should have paid such taxes, provided that the Town receives an assignment and waiver signed by both the person who actually paid the tax and the person who should have paid the tax.
b. An assignment and waiver provided under this section must:
1. identify the name and Town privilege license number of the person who erroneously paid the tax and the person who should have paid the tax.
2. provide that the person who erroneously paid the tax waives any right such person may have to a refund of the taxes erroneously paid.
3. authorize the Town Treasurer to transfer the erroneously paid tax to the privilege tax account of the person who should have paid the tax.
c. When it is determined that taxes have been reported and paid to the wrong Arizona city or town, such taxes shall be remitted to the correct city or town, provided that the city or town to whom the taxes were erroneously paid receives an assignment and waiver signed by both the person who actually paid the tax and the person who should have paid the tax. Where the person who actually paid the tax and the person who should have paid the tax are one and the same, no assignment and waiver need be provided. The Town shall neither pay nor charge any interest or penalty on any overpayment or underpayment except such interest and penalty actually paid by the taxpayer relating to such tax.
d. This Section in no way limits or restricts the applicability of any remedies which may otherwise be available under A.R.S. Section 42-6003. The limitations and procedures set forth in A.R.S. Section 42-6003 shall apply to all payments under this section.
e. When reference is made in this section to this Town or an Arizona city or town, and payments made to or requested from this Town or an Arizona city or town, the provisions shall be applicable to the Arizona Department of Revenue when it is acting for or on behalf of this Town or an Arizona city or town.
((O)08-08, Added, 4/16/08)
Section 8A-567 (Reserved)
((O)08-08, Added, 4/16/08)
Section 8A-570 Administrative Review; Petition for Hearing or for Redetermination; Finality of Order
a. Closing agreements between the Tax Collector and a taxpayer have no force of law unless made in accordance with the provisions of A.R.S. Section 42-1113.
b. Administrative review.
1. Petitions of appeal shall be made to, and hearings shall be conducted by, the Arizona Department of Revenue, in accordance with the provisions of A.R.S. Section 42-1251, as modified by Section 8A-571.
2. (Reserved)
3. (Reserved)
4. (Reserved)
5. Hearings shall be held by the Arizona Department of Revenue in accordance with the provisions of A.R.S. Section 42-1251. The Department’s decision may be appealed to the State Board of Tax Appeals, in accordance with the provisions of A.R.S. Section 42-1253.
6. (Reserved)
7. (Reserved)
8. (Reserved)
c. (Reserved)
d. (Reserved)
e. Taxpayers shall be subject to the State Taxpayer Bill of Rights (A.R.S. Section 42-2051 et. seq.).
((O)08-08, Added, 4/16/08)
Section 8A-571 Jeopardy Assessments
a. If the Tax Collector believes that collection of any amounts imposed by this chapter will be jeopardized by delay, he shall issue notice to the taxpayer in accordance with the provisions of A.R.S. Section 42-1111.
b. In cases where such jeopardy notice has been issued, the taxpayer must meet the provisions of A.R.S. Section 42-1111, concerning appeals of jeopardy assessments, before any request for administrative review shall be honored. Any bond or collateral that may be required shall meet the provisions of A.R.S. Section 42-1102.
c. (Reserved)
d. (Reserved)
e. (Reserved)
((O)08-08, Added, 4/16/08)
Section 8A-572 (Reserved)
((O)08-08, Added, 4/16/08)
Section 8A-575 Judicial Review
a. Appeal of a State Board of Tax Appeals decision to the courts is valid only if all the provisions of A.R.S. Section 42-1254 are met.
b. (Reserved)
c. (Reserved)
d. (Reserved)
e. The Town has the burden of proof by a preponderance of the evidence in any court proceeding regarding any factual issue relevant to ascertaining the tax liability of a taxpayer. This subsection does not abrogate any requirement of this chapter that requires a taxpayer to substantiate an item of gross income, exclusion, exemption, deduction, or credit. This subsection applies to a factual issue if a preponderance of the evidence demonstrates that:
1. the taxpayer asserts a reasonable dispute regarding the issue.
2. the taxpayer has fully cooperated with the Tax Collector regarding the issue, including providing within a reasonable period of time, access to and inspection of all witnesses, information and documents within the taxpayer’s control, as reasonably requested by the Tax Collector.
3. the taxpayer has kept and maintained records as required by the Town.
f. The issuance of an adjusted or corrected assessment or notice of refund due to the taxpayer, where made by the Tax Collector pursuant to the decision of the Hearing Officer, shall not be deemed an acquiescence by the Town or the Tax Collector in said decision, nor shall it constitute a bar or estoppel to the institution of an action or counterclaim by the Town to recover any amounts claimed to be due to it by virtue of the original assessment.
g. After the initiation of any action in the appropriate court by either party, the opposite party may file such counterclaim as would be allowed pursuant to the Arizona Rules of Civil Procedure.
((O)08-08, Added, 4/16/08)
Section 8A-577 (Reserved)
((O)08-08, Added, 4/16/08)
Section 8A-578 (Reserved)
((O)08-08, Added, 4/16/08)
Section 8A-580 Criminal Penalties
a. It is unlawful for any person to knowingly or willfully:
1. fail or refuse to make any return required by this chapter.
2. fail to remit as and when due the full amount of any tax or additional tax or penalty and interest thereon.
3. make or cause to be made a false or fraudulent return.
4. make or cause to be made a false or fraudulent statement in a return, in written support of a return, or to demonstrate or support entitlement to a deduction, exclusion, or credit or to entitle the person to an allocation or apportionment or receipts subject to tax.
5. fail or refuse to permit any lawful examination of any book, account, record, or other memorandum by the Tax Collector.
6. fail or refuse to remit any tax collected by such person from his customer to the Tax Collector before the delinquency date next following such collection.
7. advertise or hold out to the public in any manner, directly or indirectly, that any tax imposed by this chapter, as provided in this chapter, is not considered as an element in the price to the consumer.
8. fail or refuse to obtain a privilege license or to aid or abet another in any attempt to intentionally refuse to obtain such a license or evade the license fee.
9. reproduce, forge, falsify, fraudulently obtain or secure, or aid or abet another in any attempt to reproduce, forge, falsify, or fraudulently obtain or secure, an exemption from taxes imposed by this chapter.
b. The violation of any provision of subsection (a) above shall constitute a Class One Misdemeanor.
c. In addition to the foregoing penalties, any person who shall knowingly swear to or verify any false or fraudulent statement, with the intent aforesaid, shall be guilty of the offense of perjury and on conviction thereof shall be punished in the manner provided by law.
((O)08-08, Added, 4/16/08)
Section 8A-590 Civil Actions
a. Liens.
1. Any tax, penalty, or interest imposed under this chapter which has become final, as provided in this chapter, shall become a lien when the Town perfects a notice and claim of lien setting forth the name of the taxpayer, the amount of the tax, penalty, and interest, the period or periods for which the same is due, and the date of accrual thereof, the amount of the recording costs by the county recorder in any county in which the taxpayer owns real property and the documentation and lien processing fees imposed by the Town Council and further, stating that the Town claims a lien therefor.
2. The notice of claim of lien shall be signed by the Town Council designee under his official seal or the official seal of the Town, and, with respect to real property, shall be recorded in the office of the County Recorder of any county in which the taxpayer owns real property, and, with respect to personal property shall be filed in the office of the Secretary of State. After the notice and claim of lien is recorded or filed, the taxes, penalties, interest and recording costs and lien processing fees referred to above in the amounts specified therein shall be a lien on all real property of the taxpayer located in such county where recorded, and all tangible personal property of the taxpayer within the State, superior to all other liens and assessments recorded or filed subsequent to the recording or filing of the notice and claim of lien.
3. Every tax and any increases, interest, penalties, and recording costs and lien processing fees referred to above shall become from the time the same is due and payable a personal debt from the person liable to the Town, but shall be payable to and recoverable by the Tax Collector and may be collected in the manner set forth in subsection (b) below.
4. Any lien perfected pursuant to this section shall, upon payment of the taxes, penalties, interest, recording costs and lien processing fees referred to above and lien release fees imposed by the county recorder in any county in which the lien was recorded, thereby, be released by the Tax Collector in the same manner as mortgages and judgments are released. The Tax Collector may, at his sole discretion, release a lien in part, that is, against only specified property, for partial payment of monies due the Town.
b. Actions to recover tax. The Arizona Department of Revenue, or any agent or representative authorized by that Department, may bring action, in the name of the Town, to recover taxes as provided in A.R.S. Section 42-1114.
((O)08-08, Added, 4/16/08)
Section 8A-595 Collection of Taxes When There Is Succession in and/or Cessation of Business
a. In addition to any remedy provided elsewhere in this Town Code that may apply, the Tax Collector may apply the provisions of subsections (b) through (d) below concerning the collection of taxes when there is succession in and/or cessation of business.
b. The taxes imposed by this chapter are a lien on the property of any person subject to this chapter who sells his business or stock of goods, or quits his business, if the person fails to make a final return and payment of the tax within fifteen (15) days after selling or quitting his business.
c. Any person who purchases, or who acquires by foreclosure, by sale under trust deed or warranty deed in lieu of foreclosure, or by any other method, improved real property or a portion of improved real property for which the privilege tax imposed by this chapter has not been paid shall be responsible for payment of such tax as a speculative builder or owner-builder, as provided in Sections 8A-416 and 8A-417.
d. A person’s successors or assignees shall withhold from the purchase money an amount sufficient to cover the taxes required to be paid, and interest or penalties due and payable, until the former owner produces a receipt from the Tax Collector showing that all Town tax has been paid or a certificate stating that no amount is due as then shown by the records of the Tax Collector. The Tax Collector shall respond to a request from the seller for a certificate within fifteen (15) days by either providing the certificate or a written notice stating why the certificate cannot be issued.
1. If a subsequent audit shows a deficiency arising before the sale of the business, the deficiency is an obligation of the seller and does not constitute a liability against a buyer who has received a certificate from the Tax Collector.
2. If the purchaser of a business or stock of goods fails to obtain a certificate as provided by this section, he is personally liable for payment of the amount of taxes required to be paid by the former owner on account of the business so purchased, with interest and penalties accrued by the former owner or assignees.
((O)08-08, Added, 4/16/08)
Section 8A-596 (Reserved)
((O)08-08, Added, 4/16/08)
Section 8A-597 (Reserved)
((O)08-08, Added, 4/16/08)
|
|