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AGENDA ITEM REVIEW FORM |
6.D.
Regular City Council Meeting
- Meeting Date:
- 11/08/2017
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding First Reading of Ordinance No. 371. An ordinance of the Mayor and City Council of the City of San Luis, Arizona relating to adopting the "2012-2014 Amendments and 2016 Amendment of Local Option V (Tier Tax) to the San Luis Tax Code " by reference; establishing effective dates; providing for severability; and providing penalties for violations. (Kay Marion Macuil, City Attorney)
A. Action on First Reading of Ordinance No. 371 by title only
(City Clerk reads Ordinance by title only)
A. Action on First Reading of Ordinance No. 371 by title only
(City Clerk reads Ordinance by title only)
SUMMARY:
The attached Ordinance No. 371 is the city’s adoption which is the so-called “rubber stamp” on the tax code amendments passed and approved by the Municipal Tax Code Commission. Under A.R.S. §42-6053(A) (attachment 5 to this Agenda), the taxes are valid once they are posted on the Arizona Department of Revenues website which was done. (Please see attachment 4, the City of San Luis tax profile on the ADOR website). The purpose of this system of a Model Tax Code on a central state website is to make it easier for businesses to comply with paying taxes while doing business around the state. The amendments that Ordinance No. 371 “rubber stamps” are all of the Model City Tax Code changes approved by the Municipal Tax Code Commission since the last approval (“rubber stamp”) in the 2014 City of San Luis Ordinance No. 328. The amendments cover 2012 through 2014 plus the Municipal Tax Code Commission’s approved Tier Tax for the City of San Luis that became effective June 1, 2016.
There was a lag time for all the cities in receiving the amendments because the law passed in 2012 ending the League of Cities and Towns involvement in updating each cities amendments. There were only a few people in the state qualified to do the detailed work of going through each tax code for each city and town to be sure no valid ordinances were left out of the individual codes.
Cities and Towns propose modifications to the Municipal Tax which the Municipal Tax Code Commission approves or rejects. There is some flexibility in the Model Tax Code because there are local options which the cities may adopt if they choose. (A.R.S.§42-6053(B) and (C) spell out the requirements).
In the 2012-2014 amendments, the City of San Luis exercised an option, Section 485, which created a new classification that imposes a tax on wastewater removal services and was put into effect in the Model City Tax Code after July 1, 2013. San Luis has chosen to maintain its previous exemption in this area through the application of a zero percent tax rate for this classification. In 2016, the City of San Luis exercised option V allowing for a tiered tax.
The rest of the amendments are summarized in the second attachment to this agenda item, which was prepared by the consultant tax expert, Albert Holler. The amendments are copied in full in attachment 3.
Staff recommends approval of Ordinance No. 371 in compliance with A.R.S. §42-6053(D).
There was a lag time for all the cities in receiving the amendments because the law passed in 2012 ending the League of Cities and Towns involvement in updating each cities amendments. There were only a few people in the state qualified to do the detailed work of going through each tax code for each city and town to be sure no valid ordinances were left out of the individual codes.
Cities and Towns propose modifications to the Municipal Tax which the Municipal Tax Code Commission approves or rejects. There is some flexibility in the Model Tax Code because there are local options which the cities may adopt if they choose. (A.R.S.§42-6053(B) and (C) spell out the requirements).
In the 2012-2014 amendments, the City of San Luis exercised an option, Section 485, which created a new classification that imposes a tax on wastewater removal services and was put into effect in the Model City Tax Code after July 1, 2013. San Luis has chosen to maintain its previous exemption in this area through the application of a zero percent tax rate for this classification. In 2016, the City of San Luis exercised option V allowing for a tiered tax.
The rest of the amendments are summarized in the second attachment to this agenda item, which was prepared by the consultant tax expert, Albert Holler. The amendments are copied in full in attachment 3.
Staff recommends approval of Ordinance No. 371 in compliance with A.R.S. §42-6053(D).
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE FIRST READING OF ORDINANCE NO. 371 BY TITLE ONLY.
(City Clerk reads Ordinance No. 371 by title only)
(City Clerk reads Ordinance No. 371 by title only)
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- No
- CITY/STATE/FEDERAL FUNDS:
- N/A
- TOTAL:
- N/A
- BUDGETED AMOUNT:
- N/A
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- N/A
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
There is no fiscal impact to this item.
Attachments
- Ordinance No. 371
- Summary of Amendments
- 2012-2014 & 2016 Amendments
- ADOR Web Site San Luis Profile
- ARS 42-6053