Bill
Number: S.B. 1471
Biggs
Floor Amendment
Reference
to: printed bill
Amendment
drafted by: Leg Council
FLOOR
AMENDMENT EXPLANATION
Removes the requirement for the Department of
Insurance to submit reports regarding insurance premium tax to JBLC and OSPB.
Removes language outlining the fee amount
assessed to local governments used to fund DOR administrative costs and allows
local governments to meet their cost sharing obligation from any source of
revenue designated by the appropriate county, city or town.
Excludes local government contributions from
applicable expenditure limitations.
Requires the DOR Director to establish a tax
recovery program from September 1, 2015, through October 21, 2015, for
the purposes of reducing or waiving civil penalties and interest for unpaid tax
liabilities for any period before January 1, 2014, for annual filers, and
February 1, 2015 for all other filers.
Outlines qualifications for acceptance into
the recovery program, however, acceptance for recovery does not entitle a
taxpayer to any refunds or credits.
Outlines information that must be contained
in the application for the recovery program and specifies that an application
constitutes a waiver of all administrative and judicial rights of appeal.
Outlines the Director’s responsibilities in
regards to the recovery program.
Requires the DOR to submit a report to the
Governor, Speaker and President on or before January 1, 2016, in regards to the
recovery program and outlines the information required to be included in the
report.
Repeals the recovery program on January 1,
2016.
Contains a legislative intent clause.
Page 3, strike lines 1 through 5
Reletter to conform
Page 11, line 36, after "AS" insert "determined by the director and as"
Line 42, after the period strike remainder of line; strike
lines 43 through 45
Page 12, strike lines 1 through 3
Line 4, strike "From
and after June 30, 2015" insert "In fiscal year 2015-2016"
Line 6, after the period strike remainder of line; strike lines
7 through 9
Between lines 24 and 25, insert:
"G. Counties,
cities and towns may meet their cost sharing obligation from any source of
county, city or town revenue designated by the appropriate county, city or
town. The county sources may include monies of any countywide special taxing
jurisdiction in which the board of supervisors serves as the board of
directors.
H. County,
city and town contributions made pursuant to this section are excluded from the
applicable expenditure limitations."
Page 17, strike lines 15 through 45
Page 18, strike lines 1 through 16, insert:
"Sec. 19. Tax recovery; report; delayed repeal; definitions
A. Notwithstanding title 42, chapter 1, article 3,
Arizona Revised Statutes, the director of the department of revenue shall
establish a tax recovery program as provided in this section.
B. If a taxpayer complies with the requirements of
this section by applying to the department for recovery during the recovery
period and complying with the applicable tax requirements in the time and
manner prescribed in this section, the director shall abate or waive all the
civil penalties and interest for tax liabilities that have been or could be
assessed for any taxable period during the applicable liability period without
the need for the taxpayer to show reasonable cause or the absence of wilful
neglect. For the purposes of this subsection, "liability period" means:
1. For taxpayers filing annually, any taxable period
ending before January 1, 2014.
2. For all other taxpayers, any taxable period
ending before February 1, 2015.
C. The director may grant recovery only for the
taxable periods and tax liabilities identified in the application and only if
the taxpayer satisfies all of the recovery conditions and requirements
prescribed by this section.
D. To qualify for recovery, the taxpayer must submit
a complete and correct application as provided by subsection F of this section
during the recovery period.
E. A taxpayer does not qualify for recovery under
this section if:
1. The taxpayer is a party to any criminal
investigation or to any criminal administrative proceeding or criminal
litigation that is pending on January 1, 2015 in any court of the United States
or of this state for failure to file or failure to pay, or for fraud with
respect to, any tax imposed by any law of this state and required to be
collected by the department.
2. The taxpayer has been the subject of a past
tax-related criminal investigation, indictment or prosecution if the
investigation, indictment or prosecution resulted in a conviction, a guilty
plea or a plea of no contest.
3. The taxpayer has been convicted of a crime
relating to any period or assessment of a tax that is the basis of the penalty
or interest with respect to which recovery is sought.
4. The taxpayer is a party to a closing agreement
with the department for the tax periods included in the recovery application.
5. The taxpayer submits an application for recovery
that does not include any amount of unpaid tax.
F. An application for recovery:
1. Must be on an application form provided by the
department that requires the applicant to identify the tax, the qualifying taxable
period and the tax liability for which recovery is sought and to provide other
information prescribed by the director. The taxpayer shall include any returns
and reports, including amended returns and reports, for the tax and taxable
periods. Any return or report filed under this section is subject to
verification as provided by law. A taxpayer who has insufficient information
to file a full income tax return may file a gross income return and compute the
tax pursuant to established rate brackets based on average tax rates for the
applicable taxable years.
2. If the application for recovery is based on an
established and unpaid tax liability, must include a copy of the latest
applicable billing notice or any other documentation required by the department.
3. Must be filed with the department as prescribed
by the director during the recovery period.
4. Must include payment of the tax due.
G. An application for recovery constitutes an
express and absolute waiver of all administrative and judicial rights of appeal
available at that time that have not run or otherwise expired as of the date of
application. The state board of tax appeals and any court shall dismiss each
such action or proceeding before that body on receiving a notification from the
director that recovery has been granted for the taxable period for that
taxpayer. If the audit determination is not final, the taxpayer must withdraw
from the proceeding or litigation before recovery is granted. A taxpayer that
files an application for recovery retains all administrative and judicial
rights of appeal with respect to any additional tax assessed in a subsequent
audit by the department.
H. On reviewing the application and determining
compliance with the requirements of the recovery program under this section:
1. The director shall notify the taxpayer regarding
the application for recovery, waiving or abating the civil penalties and
interest for tax liabilities that were or could have been assessed for the
taxable periods covered by the application.
2. An administrative, civil or criminal action may
not be brought for failure to comply with the tax requirements for the taxable
periods covered by the application.
I. A grant of recovery under this section does not
entitle any affected taxpayer or other person to a refund or credit of any
amount previously paid.
J. The director shall deny or revoke the recovery of
a person who files a false or fraudulent application, return or report for
purposes of this section, or otherwise attempts to defeat or evade a tax
through the recovery program.
K. The director may:
1. Do all things necessary to provide for the timely
implementation of this section.
2. Adopt emergency rules pursuant to section
41-1026, Arizona Revised Statutes, as necessary to administer this section.
L. The tax revenues collected pursuant to recovery
payments shall be distributed by the department as provided by law.
M. On or before January 1, 2016, the department
shall submit a report to the governor, the speaker of the house of representatives
and the president of the senate. The report shall include:
1. The number of taxpayers that have applied for
recovery under this section.
2. The number of taxpayers that have been granted
recovery.
3. The amount of revenue received from taxpayers for
the recovery period.
N. This section is repealed from and after December
31, 2015.
O. For the purposes of this section:
1. "Recovery period" means September 1,
2015 through October 31, 2015.
2. "Tax" means any tax or surcharge
administered or collected by the department of revenue as provided under title
42, chapter 1, article 3, Arizona Revised Statutes or under sections 5-839,
5-840, 48-4022, 48-4234 and 48-5805, Arizona Revised Statutes, except luxury
tax and withholding tax.
3. "Tax requirement" means:
(a) Timely filing a complete and correct tax return
or report required by law.
(b) Timely paying a tax liability."
Page 18, between lines 24 and 25, insert:
"Sec. 21. Legislative intent
A. It is the intent of the legislature that the fees
prescribed in section 42‑5041, subsection B, Arizona Revised Statutes, be
assessed and collected pursuant to the following guidelines:
1. The total fees for all counties, cities and towns
may not exceed $20,755,835 in any fiscal year.
2. The share of fees assessed to all counties
pursuant to paragraph 1 of this subsection shall be in proportion to the
aggregate amount of monies distributed to counties in the preceding two fiscal
years pursuant to title 42, chapter 6, article 3, Arizona Revised Statutes, and
section 42-5029, Arizona Revised Statutes, as a percentage of aggregate
distributions to all counties, cities and towns in the preceding two fiscal
years pursuant to title 42, chapter 6, article 3, Arizona Revised Statutes, and
sections 42‑5029, 42-6001 and 43-206, Arizona Revised Statutes.
3. The share of fees assessed to all cities and
towns pursuant to paragraph 1 of this subsection shall be in proportion to the
aggregate amount of monies distributed to cities and towns in the preceding two
fiscal years pursuant to title 42, chapter 6, article 3, Arizona Revised
Statutes, and section 42-5029, Arizona Revised Statutes, as a percentage of
aggregate distributions to all counties, cities and towns in the preceding two
fiscal years pursuant to title 42, chapter 6, article 3, Arizona Revised
Statutes, and sections 42-5029, 42-6001 and 43-206, Arizona Revised Statutes.
4. Except as provided by sections 42-5033 and
42-5033.01, Arizona Revised Statutes, the population of a county as determined
by the most recent United States decennial census plus any revision to the
decennial census certified by the United States census bureau shall be used as
the basis for apportioning monies pursuant to paragraph 2 of this subsection.
5. Except as provided by sections 42-5033 and
42-5033.01, Arizona Revised Statutes, the population of a city or town as
determined by the most recent United States decennial census plus any revision
to the decennial census certified by the United States census bureau shall be
used as the basis for apportioning monies pursuant to paragraph 3 of this
subsection.
B. It is the intent of the legislature that the fees
prescribed in section 42‑5041, subsection C, Arizona Revised Statutes, be
payable in an amount equal to seventy‑six cents multiplied by the
population of the city or town used for the purposes of computing state share
revenues pursuant to sections 42‑5029 and 43‑206, Arizona Revised
Statutes."
Renumber to conform
Amend title to conform