COMMITTEE ON WAYS & MEANS
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2702
(Reference to printed bill)
Page 1, between lines 1 and 2, insert:
"Section 1. Section 42-1006, Arizona Revised Statutes, is amended to read:
42-1006. Interrogatories to taxpayers; power to require information; classification
A. The director may prepare interrogatories to be propounded to taxpayers concerning matters relating to taxes, with an oath or affirmation annexed, which shall be fully answered by the taxpayers to whom they are submitted.
B. Any person who knowingly makes a false answer to any proper question submitted to him by the director or who knowingly fails to answer any question submitted, or to take or subscribe the oath or affirmation annexed thereto, is guilty of a class 2 misdemeanor.
C. The director may administer oaths or affirmations, issue subpoenas requiring attendance and testimony of witnesses, take evidence and require by subpoena duces tecum the production of books, papers and other documents which may be relevant to the powers and duties of the department. SUBPOENAS ISSUED HEREUNDER AND ORDERS TO SHOW CAUSE ISSUED TO ENFORCE ADMINISTRATIVE SUBPOENAS ARE ENFORCEABLE TO THE MAXIMUM EXTENT PERMITTED BY THE DUE PROCESS OF LAW CLAUSE OF THE FOURTEENTH AMENDMENT OF THE UNITED STATES CONSTITUTION. SUBPOENAS AND ORDERS TO SHOW CAUSE TO ENFORCE SUCH SUBPOENAS AS AUTHORIZED BY THIS SECTION MAY BE SERVED EITHER WITHIN OR OUTSIDE THIS STATE.
D. The director may hold hearings to obtain information deemed necessary to carry out the powers and duties of the department. Hearings shall be held at a time and place and in the manner prescribed by the director, and notice of such hearing shall be given in the manner and form prescribed by the director.
E. In the case of refusal of the person to obey a subpoena issued by the director, the superior court, upon application by the director, shall issue to such person an order requiring him to appear before it and to produce evidence if so ordered, or give testimony, or to appear before the court and show cause why he should not be required to do so. Failure to obey such order of the court may be punished by the court as contempt.
Sec. 2. Section 42-1105, Arizona Revised Statutes, is amended to read:
42-1105. Taxpayer identification, verification and records; retention
A. The federal taxpayer identification number, assigned pursuant to section 6109 of the internal revenue code, is the taxpayer identifier for purposes of the taxes administered pursuant to this article. Each person who is required to make a return, statement or other document shall include the identifier in order to secure the person's proper identification. If the return, statement or other document is made, electronically or otherwise, by another person on behalf of the taxpayer, the taxpayer shall furnish the identifier to the other person, and the person shall furnish both the taxpayer's identifier and the person's own identifier with the return, statement or document.
B. The department may prescribe by administrative rule alternative methods for signing, subscribing or verifying a return, statement or other document required or authorized to be filed with the department that have the same validity and consequence as the actual signature or written declaration of the taxpayer or other person required to sign, subscribe or verify the return, statement or other document. While the department is adopting a rule prescribing alternative methods for signing, subscribing or verifying a return, statement or other document, the director, by tax ruling, may waive the requirement of a signature for a particular type or class of return, statement or other document required to be filed with the department. For purposes of this subsection, "tax ruling" has the same meaning prescribed in section 42‑2052.
C. A person who is a return preparer or an electronic return preparer shall furnish a completed copy of the return, statement or other document to the taxpayer no later than the time the return, statement or other document is presented for the taxpayer's signature.
D. Except as provided in section 42‑3010, every person who is subject to the taxes administered pursuant to this article shall keep and preserve copies of filed tax returns, including any attachments to the tax return, any signature documents used for the tax return, suitable records and other books and accounts necessary to determine the tax for which the person is liable for the period prescribed in section 42‑1104. The books, records and accounts shall be open for inspection at any reasonable time by the department or its authorized agent. IN THE COURSE OF OR IN LIEU OF INSPECTION, THE DEPARTMENT OR ITS AUTHORIZED AGENT MAY COPY OR REQUIRE THE TAXPAYER TO PROVIDE COPIES OF BOOKS, RECORDS OR OTHER DOCUMENTS OF ANY PERSON WHO MAY BE LIABLE FOR TAX UNDER THIS TITLE OR TITLE 43. THE FACT THAT THE TAXPAYER HAS NOT MAINTAINED, REFUSES OR IS UNABLE TO PROVIDE BOOKS AND RECORDS NECESSARY TO DETERMINE THE TAX LIABILITY OF ANY PERSON DOES NOT PRECLUDE THE DEPARTMENT OR ITS AUTHORIZED AGENT FROM MAKING ANY ASSESSMENT.
E. Except as provided in section 42‑3010, a return preparer or electronic return preparer shall keep copies of the return, statement or other document for six years for transaction privilege and use tax returns and four years for all other returns, statements and other documents following the date on which the return, statement or other document was due to be filed or was presented to the taxpayer for signature, whichever is later.
F. Except as provided in section 42‑3010, the department may require by administrative rule electronic return preparers to keep for each prepared return, statement or other document the following documents for six years for transaction privilege and use tax returns and four years for all other returns, statements and other documents following the later of either the date on which the return, statement or other document was due to be filed with the department or was presented to the taxpayer for signature:
1. The signature document or tax return form bearing the taxpayer's original signature in a manner prescribed by the department by administrative rule or tax ruling.
2. Any attachments to the return, statement or other document required to be submitted to the department if the return, statement or other document had not been electronically transmitted to the department.
G. The operator of a swap meet, flea market, fair, carnival, festival, circus or other transient selling event shall maintain a current list of vendors conducting business on the premises as sellers. The list shall include each vendor name, business name and business address. On written notice, the department may require an operator to submit a copy of the list at any time to the department.
H. For at least the period of time prescribed by section 42‑1104, the department shall retain any return, statement or other document, as defined in section 42-1101.01, as a record pursuant to sections 41‑151.14, 41‑151.15, 41‑151.16, 41‑151.17 and 41‑151.19. Anything submitted with the return, statement or other document as defined in section 42-1101.01 that is not required, authorized or requested by the department is not part of the record and may be destroyed, unless it is, at the department's reasonable discretion, of more than de minimis value. Copies of original documents of which the department reasonably expects the taxpayer has retained any originals are presumed to be of de minimis value for purposes of this section. If the department determines that any document that is not required, authorized or requested by the department pursuant to this subsection is of more than de minimis value, within ten days after receipt the department shall notify the taxpayer in writing or by electronic means of its intent to destroy the document. If the taxpayer requests the return of any document included in the notice, the department shall immediately comply, although the director may require the taxpayer to pay any shipping costs to return the document. If the taxpayer does not request the return of the documents within thirty days after the date on the notice or the taxpayer consents to the destruction of the documents, whichever occurs first, the department may destroy the documents included in the notice."
Renumber to conform
Page 2, line 1, after the second quotation marks insert ":
(a)"
Line 5, after "engages" insert "in at least one of the activities described in items (i) through (iv) of this subdivision, directly or indirectly, through one or more affiliated persons and in at least one of the activities described in items (v) through (xii) of this subdivision with respect to the seller's product"
Strike lines 6 and 7
Strike lines 19 and 20
Line 21, strike "(i)" insert "(v)"
Line 22, strike "(ii)" insert "(vi)"
Line 23, strike "(iii)" insert "(vii)"
Page 2, line 24, strike "(iv)" insert "(viii)"
Line 25, strike "(v)" insert "(ix)"
Line 26, strike "(vi)" insert "(x)"
Line 27, strike "(vii)" insert "(xi)"
Line 28, strike "(viii)" insert "(xii)"
Between lines 29 and 30, insert:
"(b) Does not include either of the following:
(i) A platform or forum that exclusively provides internet advertising services, including listing products for sale, if the internet advertising service platform or forum does not also engage, directly or indirectly, through one or more affiliated persons in the activities described in subdivision (a), items (i) through (iv) of this paragraph.
(ii) A payment processor business that is appointed by a merchant to handle payment transactions from various channels, such as credit cards and debit cards, and whose sole activity with respect to marketplace sales is to handle transactions between two parties."
Page 5, line 22, after "person" strike remainder of line
Line 23, strike "town" insert "who obtained a license pursuant to subsection A of this section only because the person's business"
Line 37, after "person" strike remainder of line
Line 38, strike "within a city or town" insert "who obtained a license pursuant to subsection A of this section only because the person's business"
Page 21, line 25, strike ", if"
Line 26, strike "the sale is" insert "that are"; after "facilitator" strike remainder of line
Strike line 27, insert "in which"
Line 28, strike "has paid the applicable tax and"
Page 39, line 42, strike ", if"
Line 43, strike "the sale is" insert "that are"; after "facilitator" strike remainder of line
Strike line 44, insert "in which"
Line 45, strike "has paid the applicable tax and"
Page 50, strike lines 11 through 15
Reletter to conform
Line 23, strike the second "the"
Strike line 24, insert "any person affiliated with the marketplace facilitator, directly or indirectly, through ownership or control, including through a common entity."
Line 35, strike "taxed are" insert "of a person subject to section 42‑5043 are taxed"
Amend title to conform