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ARIZONA HOUSE OF REPRESENTATIVESFifty-fourth Legislature Second Regular Session |
Senate: FIN DP 8-0-2-0 | 3rd Read 29-0-1-0House: WM DP 10-0-0-0 | 3rd Read 44-16-0-0 |
SB1121: model city tax code; procedures
Sponsor: Senator Leach, LD 11
Transmitted to the Governor
Overview
Modifies the notice, review and hearing process that the Municipal Tax Code Commission (MTCC) and the Department of Revenue (DOR) use to amend the Model City Tax Code (MCTC).
History
The imposition of Arizona city transaction privilege taxes is separate and distinct from the imposition of state TPT. Instead, cities in Arizona use the MCTC as the basis for imposing their privilege taxes. The MCTC is a uniform sales and use tax act that has been adopted by most cities in Arizona. Although the MCTC is intended to facilitate tax base uniformity among cities, the code authorizes cities to exempt or tax certain items that are not part of the standard or “model” language of the code. (JLBC 2019 Tax Handbook)
The MTCC is a commission made up of nine members and the director of DOR or the Director's representative, as an ex-officio member. The members are appointed by the Governor, President of the Senate and Speaker of the House. The MTCC approves changes to the MCTC and can recommend changes to model or local options contained in the MCTC. A city or town cannot adopt a modification or amendment of any provision of the MCTC unless it has been approved by the MTCC. The official copy of the MCTC is maintained by DOR and posted on the DOR website. (A.R.S. §§ 42-6052 and 42-6053)
Provisions
1.
Requires the MTCC to meet on the call of
the chairman, in response to any proposed amendment to the MCTC. (Sec. 1)
2. Requires DOR to maintain and post to their official website the official copy of the MCTC. (Sec. 1)
3. Requires a city, town, taxpayer or DOR, at least 60 days before the MTCC adopts any amendment, to submit the proposed amendment to the MTCC for review, consideration and adoption. (Sec. 1)
4. Requires DOR to post the proposed amendment, meeting notice and agenda on their official website at least 30 days before the informational public hearing and at least 60 before the public hearing. (Sec. 1)
5. Requires the MTCC to hold an informational public hearing, at the request of a city, town, taxpayer or DOR, to review and receive comments on the proposed amendment. (Sec. 1)
6. Requires DOR to provide a legal analysis of the proposed amendment to the MTCC. (Sec. 1)
7. Requires the MTCC to consider the information and testimony presented. (Sec. 1)
8. Requires DOR to post the proposed amendment with any required changes to their official website no later than five days after the informational public hearing. (Sec. 1)
9. Requires the MTCC, at least 60 days after receiving a proposed amendment, to hold a public hearing to consider any information and testimony presented at the informational public hearing, if one was requested, and to consider adopting the proposed amendment. (Sec. 1)
10. Requires DOR to update the official copy of the MCTC within 10 days if the MTCC adopts a proposed amendment. (Sec. 1)
11. Provides that changes to the MCTC not reflected on DOR's official website are void and have no effect. (Sec. 1)
12. Requires all cities and towns to adopt the MCTC changes approved by the MTCC. (Sec. 1)
13. Provides that the MTCC is not prohibited from recommending changes to model or local option changes to the MCTC. (Sec. 1)
14. Prohibits a city or town from adopting an amendment to any provision of the MCTC unless the MTCC has adopted the amendment. (Sec. 1)
15. Provides that changes in tax rates are not subject to review. (Sec. 1)
16. Requires a city or town that imposes a new or different tax rate to notify the MTCC and DOR within 10 days after passage and that failure to do so renders the new or different rate void. (Sec. 1)
17. Defines new or different tax rate. (Sec. 1)
18. Requires the new or different tax rate to be reflected on the official copy of the MCTC within 10 days after passage and failure to do so renders the new or different rate void. (Sec. 1)
19. Requires the MTCC to prepare and deliver a report to the Governor, President of the Senate and Speaker of the House before January 1 of each year. (Sec. 1)
20. Repeals the section of law that addresses the official copy, review and comment on proposed changes to the MCTC. (Sec. 2)
21. Makes technical and conforming changes. (Sec. 1)
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25. SB 1121
26. Initials VP Page 0 Transmitted
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