Bill Number: S.B. 1413

                                                                                                     Yarbrough Floor Amendment

                                                                                                              Reference to: printed bill

                                                                                                Amendment drafted by: Bill Ritz

 

 

• Removes the municipal tax exemption and specifies that a municipality that levies TPT on businesses that produce or provide electricity must either tax or exempt the gross proceeds of sales or gross income from sales to business that use at least 51 percent of the electricity in manufacturing or smelting operations.

 

• Clarifies that the TPT and use tax exemptions apply to the purchase of electricity for manufacturing or smelting operations that use at least 51 percent of the electricity in the manufacturing or smelting operations.

 

• Defines manufacturing and smelting.

Fifty-first Legislature                                                 Yarbrough

Second Regular Session                                                  S.B. 1413

 

YARBROUGH FLOOR AMENDMENT

 

SENATE AMENDMENTS TO S.B. 1413

 

(Reference to printed bill)

 

 

Page 2, line 23, strike “FOR USE” insert “TO A BUSINESS THAT IS PRINCIPALLY ENGAGED”; after “OPERATIONS” insert “THAT USES AT LEAST FIFTY-ONE PER CENT OF THE ELECTRICITY IN THE MANUFACTURING OR SMELTING OPERaTIONS”

Line 24, after “PARAGRAPH” strike remainder of line

Strike line 25, insert “:

(a) ‘MANUFACTURING’ MEANS THE PERFORMANCE AS A BUSINESS OF AN INTEGRATED SERIES OF OPERATIONS that PLACE TANGIBLE PERSONAL PROPERTY IN A FORM, COMPOSITION OR CHARACTER DIFFERENT FROM THAT IN WHICH IT WAS ACQUIRED AND TRANSFORMS IT INTO A DIFFERENT PRODUCT WITH A DISTINCTIVE NAME, CHARACTER OR USE. MANUFACTURING DOES NOT INCLUDE PROCESSING, FABRICATING, JOB PRINTING, MINING, GENERATING ELECTRICITY OR OPERATING A RESTAURANT.

(b)  ‘PRINCIPALLY ENGAGED’ MEANS AT LEAST FIFTY-ONE PER CENT OF THE BUSINESS IS A MANUFACTURING OR SMELTING OPERATION.

(c)  ‘SMELTING’ MEANS TO MELT OR FUSE A METALLIFEROUS MINERAL OFTEN WITH AN ACCOMPANYING CHEMICAL CHANGE USUALLY TO SEPARATE THE METAL.”

Page 15, line 12, strike “FOR USE” insert “BY A BUSINESS THAT IS PRINCIPALLY ENGAGED”; after “OPERATIONS” insert “THAT USES AT LEAST FIFTY-ONE PER CENT OF THE ELECTRICITY IN THE MANUFACTURING OR SMELTING OPERaTIONS”

Line 13, after “SUBSECTION” strike remainder of line

Strike line 14, insert “:

(a) ‘MANUFACTURING’ MEANS THE PERFORMANCE AS A BUSINESS OF AN INTEGRATED SERIES OF OPERATIONS that PLACE TANGIBLE PERSONAL PROPERTY IN A FORM, COMPOSITION OR CHARACTER DIFFERENT FROM THAT IN WHICH IT WAS ACQUIRED AND TRANSFORMS IT INTO A DIFFERENT PRODUCT WITH A DISTINCTIVE NAME, CHARACTER OR USE. MANUFACTURING DOES NOT INCLUDE PROCESSING, FABRICATING, JOB PRINTING, MINING, GENERATING ELECTRICITY OR OPERATING A RESTAURANT.

(b)  ‘PRINCIPALLY ENGAGED’ MEANS AT LEAST FIFTY-ONE PER CENT OF THE BUSINESS IS A MANUFACTURING OR SMELTING OPERATION.

(c)  ‘SMELTING MEANS’ TO MELT OR FUSE A METALLIFEROUS MINERAL OFTEN WITH AN ACCOMPANYING CHEMICAL CHANGE USUALLY TO SEPARATE THE METAL.”

Page 27, line 29, strike “FOR USE” insert “BY A BUSINESS THAT IS PRINCIPALLY ENGAGED”; after “OPERATIONS” insert “THAT USES AT LEAST FIFTY-ONE PER CENT OF THE ELECTRICITY IN THE MANUFACTURING OR SMELTING OPERaTIONS”

Line 30, after “SUBSECTION” strike remainder of line

Strike line 31, insert “:

(a) ‘MANUFACTURING’ MEANS THE PERFORMANCE AS A BUSINESS OF AN INTEGRATED SERIES OF OPERATIONS that PLACE TANGIBLE PERSONAL PROPERTY IN A FORM, COMPOSITION OR CHARACTER DIFFERENT FROM THAT IN WHICH IT WAS ACQUIRED AND TRANSFORMS IT INTO A DIFFERENT PRODUCT WITH A DISTINCTIVE NAME, CHARACTER OR USE. MANUFACTURING DOES NOT INCLUDE PROCESSING, FABRICATING, JOB PRINTING, MINING, GENERATING ELECTRICITY OR OPERATING A RESTAURANT.

(b)  ‘PRINCIPALLY ENGAGED’ MEANS AT LEAST FIFTY-ONE PER CENT OF THE BUSINESS IS A MANUFACTURING OR SMELTING OPERATION.

(c)  ‘SMELTING’ MEANS TO MELT OR FUSE A METALLIFEROUS MINERAL OFTEN WITH AN ACCOMPANYING CHEMICAL CHANGE USUALLY TO SEPARATE THE METAL.”

Page 28, strike lines 3 through 45

Strike pages 29 through 34

Page 35, strike lines 1 through 10, insert:

“Sec. 4.  Title 42, chapter 6, article 1, Arizona Revised Statutes, is amended by adding section 42-6012, to read:

START_STATUTE42-6012.  Municipal transaction privilege tax; sales of electricity

A.  A CITY OR TOWN THAT LEVIES A TRANSACTION PRIVILEGE, SALES, GROSS RECEIPTS, USE, FRANCHISE OR OTHER SIMILAR FEE OR TAX, HOWEVER DENOMINATED, ON THE BUSINESS OF PRODUCING, PROVIDING OR FURNISHING ELECTRICITY, ELECTRIC LIGHTS, CURRENT OR POWER SHALL EITHER TAX OR EXEMPT IN WHOLE THE GROSS PROCEEDS OF SALES OR GROSS INCOME FROM SALES BY those BUSINESSES TO  BUSINESSES THAT USE AT LEAST FIFTY-ONE PER CENT OF THE ELECTRICITY, ELECTRIC LIGHTS, CURRENT OR POWER IN MANUFACTURING OR SMELTING OPERATION LOCATED IN THAT CITY OR TOWN.

B.  FOR THE PURPOSES OF THIS SECTION:

            1. ‘MANUFACTURING’ MEANS THE PERFORMANCE AS A BUSINESS OF AN INTEGRATED SERIES OF OPERATIONS that PLACE TANGIBLE PERSONAL PROPERTY IN A FORM, COMPOSITION OR CHARACTER DIFFERENT FROM THAT IN WHICH IT WAS ACQUIRED AND TRANSFORMS IT INTO A DIFFERENT PRODUCT WITH A DISTINCTIVE NAME, CHARACTER OR USE. MANUFACTURING DOES NOT INCLUDE PROCESSING, FABRICATING, JOB PRINTING, MINING, GENERATING ELECTRICITY OR OPERATING A RESTAURANT.

            2. ‘PRINCIPALLY ENGAGED’ MEANS AT LEAST FIFTY-ONE PERCENT OF THE BUSINESS IS A MANUFACTURING OR SMELTING OPERATION.

            3. ‘SMELTING’ MEANS TO MELT OR FUSE A METALLIFEROUS MINERAL OFTEN WITH AN ACCOMPANYING CHEMICAL CHANGE USUALLY TO SEPARATE THE METAL.”

Renumber to conform

Page 35, line 14, strike “and section 42-6004,”

Strike lines 15, 16 and 17

Line 18, strike “chapter 6 and this act,”

Line 22, after the second comma strike remainder of line

Strike line 23, insert “is”

Amend title to conform

 

 

 

 

3/6/14

2:26 PM

S: BR/ls