REFERENCE TITLE: mining; severance tax; TPT; rates

State of Arizona House of Representatives Fifty-second Legislature First Regular Session 2015

HB 2625

Introduced by Representative Gabaldón

 

AN ACT

 

Amending sections 42-5010 and 42-5202, Arizona Revised Statutes; relating to mining tax rates.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 42-5010, Arizona Revised Statutes, is amended to read:

START_STATUTE42-5010.  Rates; distribution base

A.  The tax imposed by this article is levied and shall be collected at the following rates:

1.  Five per cent percent of the tax base as computed for the business of every person engaging or continuing in this state in the following business classifications described in article 2 of this chapter:

(a)  Transporting classification.

(b)  Utilities classification.

(c)  Telecommunications classification.

(d)  Pipeline classification.

(e)  Private car line classification.

(f)  Publication classification.

(g)  Job printing classification.

(h)  Prime contracting classification.

(i)  Amusement classification.

(j)  Restaurant classification.

(k)  Personal property rental classification.

(l)  Retail classification.

2.  Five and one‑half per cent percent of the tax base as computed for the business of every person engaging or continuing in this state in the transient lodging classification described in section 42‑5070.

3.  Three Four and one‑eighth per cent percent of the tax base as computed for the business of every person engaging or continuing in this state in the mining classification described in section 42‑5072.

4.  Zero per cent percent of the tax base as computed for the business of every person engaging or continuing in this state in the commercial lease classification described in section 42‑5069.

B.  Except as provided by subsection J of this section, twenty per cent percent of the tax revenues collected at the rate prescribed by subsection A, paragraph 1 of this section from persons on account of engaging in business under the business classifications listed in subsection A, paragraph 1, subdivisions (a) through (h) of this section is designated as distribution base for purposes of section 42‑5029.

C.  Forty per cent percent of the tax revenues collected at the rate prescribed by subsection A, paragraph 1 of this section from persons on account of engaging in business under the business classifications listed in subsection A, paragraph 1, subdivisions (i) through (l) of this section is designated as distribution base for purposes of section 42‑5029.

D.  Thirty‑two per cent percent of the tax revenues collected from persons on account of engaging in business under the business classification listed in subsection A, paragraph 3 of this section is designated as distribution base for purposes of section 42‑5029.

E.  Fifty‑three and one‑third per cent percent of the tax revenues collected from persons on account of engaging in business under the business classification listed in subsection A, paragraph 4 of this section is designated as distribution base for purposes of section 42‑5029.

F.  Fifty per cent percent of the tax revenues collected from persons on account of engaging in business under the business classification listed in subsection A, paragraph 2 of this section is designated as distribution base for purposes of section 42‑5029.

G.  In addition to the rates prescribed by subsection A of this section, if approved by the qualified electors voting at a statewide general election, an additional rate increment is imposed and shall be collected through June 30, 2021.  The taxpayer shall pay taxes pursuant to this subsection at the same time and in the same manner as under subsection A of this section.  The department shall separately account for the revenues collected with respect to the rates imposed pursuant to this subsection and the state treasurer shall distribute all of those revenues in the manner prescribed by section 42‑5029, subsection E.  The rates imposed pursuant to this subsection shall not be considered local revenues for purposes of article IX, section 21, Constitution of Arizona.  The additional tax rate increment is levied at the rate of six‑tenths of one per cent percent of the tax base of every person engaging or continuing in this state in a business classification listed in subsection A, paragraph 1 of this section.

H.  Any increase in the rate of tax that is imposed by this chapter and that is enacted by the legislature or by a vote of the people does not apply with respect to contracts entered into by prime contractors or pursuant to written bids made by prime contractors on or before the effective date of the legislation or the date of the election enacting the increase.  To qualify for the exemption under this subsection, the prime contractor must maintain sufficient documentation, in a manner and form prescribed by the department, to verify the date of the contract or written bid.

I.  For taxpayers taxable under this chapter other than prime contractors taxable pursuant to section 42‑5075:

1.  Any increase in the rate of tax that is levied by this article or article 2 of this chapter enacted by the legislature or by a vote of the people does not apply for a period of one hundred twenty days from the date of the tax rate increase to the gross proceeds of sales or gross income from the business of the taxpayer with respect to written contracts entered into before the effective date of the tax rate increase unless the taxpayer has entered into a contract that contains a provision that entitles the taxpayer to recover from the purchaser the amount of the additional tax levied.

2.  The provisions of this subsection apply without regard to the accounting method used by the taxpayer to report the taxes imposed under article 2 of this chapter.

3.  The provisions of this subsection shall not be considered in determining the rate of tax imposed under chapter 6, article 3 of this title.

J.  Zero per cent percent of the tax revenues that are collected at the rate prescribed by subsection A, paragraph 1 of this section from persons on account of engaging in business under the business classification listed in subsection A, paragraph 1, subdivision (h) of this section, and that are subject to any distribution required by section 42‑5032.02, is designated as distribution base for the purposes of section 42‑5029 until the total amount subject to distribution pursuant to section 42‑5032.02 has reached the maximum amount prescribed by section 42‑5032.02, subsection C.  Thereafter, twenty per cent percent of the remaining tax revenues is designated as distribution base for the purposes of section 42‑5029 as provided by subsection B of this section. END_STATUTE

Sec. 2.  Section 42-5202, Arizona Revised Statutes, is amended to read:

START_STATUTE42-5202.  Levy of tax

A.  There is levied on any severer, and the department shall collect, an excise tax, denominated as a severance tax.

B.  Except as provided in section 42-5203, the severance tax is in lieu of any other tax imposed upon on the activities of mining and processing by article 1 of this chapter.

C.  The amount of the severance tax levied on a severer engaging in the business of mining shall be determined by multiplying the net severance base by two three and one-half per cent percent. END_STATUTE

Sec. 3.  Requirements for enactment; two-thirds vote

Pursuant to article IX, section 22, Constitution of Arizona, this act is effective only on the affirmative vote of at least two-thirds of the members of each house of the legislature and is effective immediately on the signature of the governor or, if the governor vetoes this act, on the subsequent affirmative vote of at least three-fourths of the members of each house of the legislature.