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ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
AMENDED
regents;
officers; technical correction
(NOW: municipal tax code commission; continuation)
Purpose
Continues the Municipal Tax Code Commission (MTCC) for four years and allows a city or town to adopt an amendment to the Model City Tax Code (MCTC) if the amendment is a result of a statutory change.
Background
The MTCC was established in 1988 to review, hold public hearings on and approve or deny proposed amendments to the MCTC. The MCTC is a uniform sales tax and use tax act adopted by most cities and towns in Arizona. The Arizona Department of Revenue (ADOR) maintains the official copy of the MCTC. A city or town may not adopt an amendment to the MCTC unless the MTCC has adopted the amendment.
The MTCC consists of nine appointed members who are mayors or members of the governing bodies of cities and towns that have adopted the MCTC. The Director of ADOR serves as an ex officio member. Five members are appointed by the Governor, two members are appointed by the President of the Senate and two members are appointed by the Speaker of the House of Representatives. No more than two members of the MTCC may be from the same city or town. Appointed members serve three-year terms (A.R.S. § 42-6052).
The Senate Finance Committee of Reference (COR) held a public meeting on Monday, January 23, 2023, to review the Auditor General's performance audit and sunset review, consider the MTCC's responses to the statutorily-outlined sunset factors and receive public testimony. The COR recommended that the MTCC be continued for four years, until July 1, 2027. The MTCC terminates on July 1, 2023, unless continued by the Legislature (A.R.S. §§ 41-2954 and 41-3023.09; COR Report).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Continues, retroactive to July 1, 2023, the MTCC until July 1, 2027.
2. Requires ADOR to incorporate statutory changes to the MCTC that are necessary to conform the MCTC with a statutory change within 30 days of the statutory change's effective date.
3. Allows a city or town to adopt an amendment to the MCTC if the amendment is a result of ADOR incorporating a statutory change.
4. Repeals the MTCC on July 1, 2028.
5. Contains a purpose statement.
6. Makes technical and conforming changes.
7. Becomes effective on the general effective date, with a retroactive provision as noted.
Amendments Adopted by Committee
· Adopted the strike-everything amendment.
Senate Action
FIN 2/13/23 DPA/SE 7-0-0
Prepared by Senate Research
February 22, 2023
MG/ZS/sr