PREFILED JAN 03 2019
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REFERENCE TITLE: online lodging marketplace; local taxation |
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State of Arizona House of Representatives Fifty-fourth Legislature First Regular Session 2019
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HB 2027 |
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Introduced by Representative Kavanagh
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AN ACT
amending section 42‑6009, Arizona Revised Statutes; relating to local excise taxes.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-6009, Arizona Revised Statutes, is amended to read:
42-6009. Online lodging; definitions
A. Except as provided by this section, a city, town or other taxing jurisdiction may not levy a transaction privilege, sales, use, franchise or other similar tax or fee, however denominated, on the business of operating an online lodging marketplace or, in the case of an online lodging marketplace that is licensed pursuant to section 42‑5005, subsection L, on any online lodging transaction facilitated by the online lodging marketplace or on any online lodging operator with respect to any online lodging transaction for which it has received documentation that the online lodging marketplace has remitted or will remit the applicable tax to the department pursuant to section 42‑5014, subsection E.
B. In the case of an online lodging marketplace that is licensed pursuant to section 42‑5005, subsection L, a city, town or other taxing jurisdiction may levy a transaction privilege, sales, use, franchise or other similar tax or fee as provided by on the gross receipts of an online lodging marketplace, whether acting on its own behalf or as a broker, from any activity subject to tax under the model city tax code, on the online lodging subject to the following conditions:
1. The adopted collection of the city, town or other taxing jurisdiction tax must be administered in a manner that is uniform with the treatment of online lodging marketplaces, online lodging operators and online lodging transactions provided by chapter 5 of this title, except that:
(a) The adopted city, town or other taxing jurisdiction tax rate may be different from the state tax rate prescribed by section 42‑5010.
(b) The adopted city, town or other taxing jurisdiction tax may apply to online lodging transactions involving rentals of lodging accommodations in the city, town or other taxing jurisdiction for more than twenty-nine consecutive days. With respect to any tax on rentals of lodging accommodations for more than twenty-nine consecutive days, in the case of an online lodging marketplace that has registered pursuant to section 42‑5005, subsection L, the adopted city, town or other taxing jurisdiction tax must uniformly apply to all lodging accommodations in the city, town or other taxing jurisdiction for thirty consecutive days or more, and the tax base for the tax must be limited exclusively to online lodging transactions facilitated by an online lodging marketplace for rentals of lodging accommodations for thirty consecutive days or more and located in the applicable city, town or other taxing jurisdiction.
2. The adopted city, town or other taxing jurisdiction tax shall be administered, collected and enforced by the department and remitted distributed to the city, town or other taxing jurisdiction in a uniform manner.
3. The adopted city, town or other taxing jurisdiction tax must be uniform imposed on online lodging marketplaces, and online lodging operators and must be uniform with all other taxpayers of the same class engaging in the same activity within the jurisdictional boundaries of the city, town or other taxing jurisdiction.
4. Any adopted city, town or other taxing jurisdiction tax is subject to:
(a) Section 42‑6002, relating to audits.
(b) Section 42‑2003, subsection X, relating to confidential information.
(c) Section 42‑5003, subsection B, relating to judicial enforcement.
(d) Section 42‑5005, subsection L, relating to registration of online lodging marketplaces.
(e) Section 42‑5014, subsection E, relating to tax returns.
5. The city, town or other taxing jurisdiction tax may not be collected from an online lodging operator with respect to any online lodging transaction or transactions for which the online lodging operator has received written notice or documentation from a registered online lodging marketplace that it has remitted or will remit the applicable city, town or other taxing jurisdiction tax with respect to those transactions to the department pursuant to section 42‑5014, subsection E.
C. For the purposes of this section, "lodging accommodations", "online lodging marketplace", "online lodging operator" and "online lodging transaction" have the same meanings prescribed in section 42‑5076.