ARIZONA HOUSE OF REPRESENTATIVES Fifty-seventh Legislature First Regular Session
	House: WM DP 6-2-0-1 | 3rd Read DP 34-24-2-0-0 Senate: FIN DPA 6-1-0-0 | 3rd Read DPA 30-0-0-0

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HB 2119: model city tax code; notice

Sponsor: Representative Carter N, LD 15

Senate Engrossed

Overview

Requires a municipality that proposes an ordinance to adopt or repeal a Model City Tax Code (MCTC) model or local option to notify all affected businesses in an affected business classification by mail at last sixty days prior to the proposed ordinance being approved or rejected by the municipality.

History

Current law prohibits municipalities from levying or assessing any new taxes or fees or increasing existing taxes or fees without doing the following: preparing a schedule of the proposed new or increased tax or fee and filing it in the municipalities clerk's office; preparing a schedule of any proposed new tax or fee that supports the new charge on the municipalities website; prepare a written notice of any proposal to increase an existing tax or fee increase that supports the proposed increase on the municipalities website; or prepare a notice of intent to establish or increase taxes, assessments or fees including a schedule that supports the new or increased tax or fee on the municipalities website. (A.R.S. § 9-499.15)

Provisions

1. Requires a municipality that proposes an ordinance to adopt or repeal a Model City Tax Code (MCTC) model or local option to notify all affected businesses in an affected business classification by mail at last sixty days prior to the proposed ordinance being approved or rejected by the municipality. (Sec. 1)

2. States that the mail notification process does not apply to ordinances that impose a use tax or that exempt a city from use tax or to impose a two-tiered tax rate for retail sales. (Sec. 1)

3. Requires a municipality to provide a license applicant with a notice of any MCTC model or local options that will apply to the applicant. (Sec. 2)

4. Requires a city or town that proposes an ordinance to adopt or repeal an MCTC model or local option to notify all businesses in the affected business classification. (Sec. 3)

Senate Amendments

1. Requires a municipality, to request a list of all taxpayers within the municipality in the affected tax classification from DOR, at least 75 days before a municipality proposes an ordinance to adopt or repeal a model or local option in the MCTC. (Sec. 1)

2. Requires the municipality to notify all taxpayers by mail in the affected tax classification of the proposed ordinance, at least 60 days before the date the proposed ordinance is approved or rejected. (Sec. 1)

3. Requires municipalities that issue a business license to provide notice of any model or local option in the MCTC that will apply to an applicant at the time the applicant obtains a business license application. (Sec. 2)

4. Expands the use of confidential taxpayer information released by DOR to a county or municipality to be used to communicate with taxpayers for the purposes of the notice of a proposed ordinance to adopt or repeal a model or local option in the MCTC. (Sec. 3)

5. Changes the minimum date a modification or amendment to the MCTC becomes effective from thirty days to sixty days after the hearing, unless otherwise provided by city charter. (Sec. 4)

6. Changes businesses to taxpayers. (Sec. 1, 4)

7. Changes business classification to tax classification. (Sec 1, 4)

8. Makes technical and conforming changes. (Sec. 1, 2)

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                        HB 2119

Initials VP    Page 0           Senate Engrossed

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