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AGENDA ITEM REVIEW FORM |
2.J.
Work Session
- Meeting Date:
- 11/01/2017
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Discussion Item - No Action to be Taken
ITEM:
Discussion and possible directions to staff on any and all matters regarding a proposed ordinance. An ordinance of the Mayor and City Council of the City of San Luis, Arizona relating to adopting "The 2012-2014 Amendments" and the Codified Version of Ordinance No. 357 to the Tax Code of the City of San Luis by reference; establishing effective dates; providing for severability; and providing penalties for violations. (Kay Marion Macuil, City Attorney)
SUMMARY:
The attached proposed ordinance is the city’s adoption basically the “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 (ADOR) 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 the proposed ordinance “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 under Ordinance No. 357.
There was a lag time for all the cities in receiving the amendments to the Model City Tax Code 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).
The City of San Luis only exercised one 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.
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 the proposed ordinance to be in compliance with A.R.S. §42-6053(D).
There was a lag time for all the cities in receiving the amendments to the Model City Tax Code 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).
The City of San Luis only exercised one 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.
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 the proposed ordinance to be in compliance with A.R.S. §42-6053(D).
RECOMMENDATION / SUGGESTED MOTION:
Discussion and possible directions to staff only, no action.
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 for this item.
Attachments
- Ordinance No. 371
- Summary of Amendments
- 2012-2014 & 2016 Amendments
- ADOR Web Site San Luis Profile
- ARS 42-6053