PROPOSED AMENDMENT
SENATE AMENDMENTS TO S.B. 1216
(Reference to printed bill)
Page 14, between lines 32 and 33, insert:
“Sec. 9. Section 42-5039, Arizona Revised Statutes, is amended to read:
42-5039. Qualified destination management companies; definitions
A. A qualified destination management company is not subject to transaction privilege tax under this chapter on the gross proceeds of sales or gross income derived from a qualified contract for destination management services. The gross proceeds of sales or gross income derived by a qualified destination management company from transactions that are not part of a qualified contract for destination management services are subject to tax if otherwise taxable under this chapter.
B. A qualified destination management company is a final consumer and user of any tangible personal property, activity or service subject to transaction privilege tax under article 2 of this chapter that the qualified destination management company arranges pursuant to a qualified contract for destination management services.
C. For the purposes of this section:
1. "Destination management services" means the business of coordinating, designing and implementing the delivery by a third party of four or more of the following:
(a) Transportation.
(b) Entertainment.
(c) Food or beverage.
(d) Recreational or amusement activity.
(e) Tours.
(f) Event venue.
(g) Theme decor.
2. "Qualified contract" means a contract for the provision of destination management services by a qualified destination management company where both of the following apply:
(a) The qualified destination management company receives payment from or on behalf of the qualified destination management company's client for the cost of the destination management services arranged by the qualified destination management company.
(b) The qualified destination management company pays the vendor supplying the destination management services arranged by the qualified destination management company including any applicable transaction privilege tax or collection of use tax charged by the vendor to the qualified destination management company.
3. "Qualified destination management company" means a person that receives on an annual basis at least eighty per cent of its gross proceeds of sales or gross income derived from destination management services.”
Page 60, between lines 3 and 4, insert:
“Sec. 17. Section 43-1098, Arizona Revised Statutes, is amended to read:
43-1098. Apportionment of exemptions
A. Any resident taxpayer, other than an active member of the armed forces of the United States or any other auxiliary branch, who commences or terminates his residency in this state during any one taxable year shall prorate the following on the basis of the proportion which such taxpayer's total Arizona gross income bears to the federal adjusted gross income:
1. The personal exemption provided in section 43‑1043.
2. The exemptions provided in section 43‑1023 for the blind, for persons age sixty-five or older and for dependents.
B. The percentage of exemption allowed shall be computed by dividing
the taxpayer's Arizona adjusted gross income by the federal adjusted gross income.”
Renumber to conform
Amend title to conform