Chapter 3.05
PRIVILEGE AND EXCISE TAXES

Sections:

3.05.010    Adoption of Model Cities Tax Code.

3.05.020    Appendix I amendment to Model Cities Tax Code.

3.05.030    Appendix II amendment to Model Cities Tax Code.

3.05.040    Appendix III amendment to Model Cities Tax Code.

3.05.050    Appendix IV amendment to Model Cities Tax Code.

3.05.060    Tax rate table.

    Prior legislation: Ords. 1996-03, 1996-17, 1997-03, 1998-07, 1999-11, 2000-07, 2001-12, 2003-04, 2005-01, 2005-02, 2006-11, 2006-16, 2007-09, 2008-04, 2009-24, 2011-055 and prior code §§ 8-1 through 8-597.

3.05.010 Adoption of Model Cities Tax Code.

That certain document known as “Model Cities Tax Code,” maintained by the Arizona Department of Revenue pursuant to ARS 42-6053 and currently available at https://modelcitytaxcode.az.gov, as amended from time to time, is hereby referred to, adopted and made a part of this town code as if fully set out in this title. [Ord. 2020-150 § 1.]

3.05.020 Appendix I amendment to Model Cities Tax Code.

The Model Cities Tax Code is amended as provided in Appendix I to the Model Cities Tax Code, titled Appendix I – Modifications to Model City Code for Cities/Towns in State Collection System, as amended from time to time. [Ord. 2020-150 § 1.]

3.05.030 Appendix II amendment to Model Cities Tax Code.

The Model Cities Tax Code is amended as provided in Appendix II to the Model Cities Tax Code, titled Appendix II – Model Options, by adopting the following Model Options, as amended from time to time:

A. Option No. 3, do not exempt job printing for publishers, amending Article IV, Section 425(b)(4).

B. Option No. 7, do not exempt gross income from coin-operated washing, drying, car wash, and dry-cleaning machines from the tax on rental of tangible personal property, amending Article IV, Section 450(c)(8).

C. Option No. 10, do not exempt livestock, feed and agricultural chemicals purchased by ranchers, farmers, etc., amending Article IV, Sections 465 and 660.

D. Option No. 11, do not allow tax credit against telecommunications tax for franchise and license fees paid the city, amending Article IV, Section 470(d) and Regulation 350.2(e)(3)(B).

E. Option No. 12, do not tax motor vehicle transportation for hire, amending Article IV, Section 475 and Regulation 350.2(e)(8).

F. Option No. 13, do not allow tax credit against utility tax for franchise fees paid the city, amending Article IV, Section 480(d) and Regulation 350.2(e)(3)(A).

G. Option No. 15, do not impose a use tax, amending Article IV, Sections 270(f), 300(a)(2), 415(b)(B), 416(c)(1)(A)(ii), and 417(c)(1)(A)(ii), Article VI, and Regulations 115.1(f), 300.1(a)(4), 350.2(e)(6), and 520.1(a)(6). [Ord. 2020-150 § 1.]

3.05.040 Appendix III amendment to Model Cities Tax Code.

The Model Cities Tax Code is amended as provided in Appendix III to the Model Cities Tax Code, titled Local Options, by adopting the following Local Options, as amended from time to time:

A. Local Option No. G, exempt local advertising, amending Article IV, Section 405(b).

B. Local Option No. AA, exempt employee meals from tax, amending Article IV, Section 465(x).

C. Local Option No. GG, tax municipal utility services to out-of-city customers where such service is not subject to an equivalent excise tax, amending Article IV, Section 480(a)(2). [Ord. 2020-150 § 1.]

3.05.050 Appendix IV amendment to Model Cities Tax Code.

The Model Cities Tax Code is amended as provided in Appendix IV to the Model Cities Tax Code, titled Modifications to the Model City Tax Code for Cities and Towns in State Collection System Performing Supplementary Local Audits, as amended from time to time. [Ord. 2020-150 § 1.]

3.05.060 Tax rate table.

Region/City Code:

SA

County Code:

PMA

Tax Classification

Model City Tax Code Provision

Applicable Model Options

Applicable Local Options

Business Code

Tax Rate %

Advertising

IV-405

 

G

N/A

 

Amusements

IV-410

 

 

012

2.00

Contracting – Prime

IV-415

 

 

015

4.00

MRRA Amount

IV-415.1

 

 

315

2.00

Contracting – Speculative Builders

IV-416

 

 

016

4.00

Contracting – Owner Builder

IV-417

 

 

037

4.00

Job Printing

IV-425

3

 

010

2.00

Manufactured Buildings

IV-427

 

 

027

2.00

Timbering and Other Extraction

IV-430

 

 

020

2.00

Severance – Metal Mining

IV-432

 

 

019

0.10

Publication

IV-435

 

 

009

2.00

Hotels

IV-444

 

 

044

2.00

Hotel/Motel (Additional Tax)

IV-447

 

 

144

2.00

Rental, Leasing and Licensing for Use of TPP

IV-450

7

 

214

2.00

Residential Rental, Leasing and Licensing for Use

IV-445

 

 

045

2.00

Commercial Rental, Leasing and Licensing for Use

IV-445

 

 

213

2.00

Restaurants and Bars

IV-455

 

 

011

2.00

Retail Sales – Food for Home Consumption

IV-462

 

 

N/A

 

Retail Sales

IV-465

10

AA

017

2.00

Communications

IV-470

11

 

005

2.00

Transporting

IV-475

12

 

006

2.00

Utilities

IV-480

13

GG

004

2.00

Use Tax

VI-600 et al.

15

 

N/A

 

[Ord. 2020-150 § 1.]