INDEX TO LAKE HAVASU CITY TAX CODE
Section   Description
Article I - General Conditions and Definitions
   1   Words of tense, number and gender; code references.
   100    General definitions.
      Assembler
      Broker (Reg. 100.1)
      Business
      Business day
      Casual activity or sale
      Combined taxes
      Commercial property
      Communications channel
      Construction contracting
      Construction contractor
      Delivery (of notice) by the Tax Collector
      Delivery, installation, or other direct customer services (Reg. 100.2)
      Engaging
      Equivalent excise tax
      Federal government
      Food
      Hotel
      Jet fuel
      Job printing
      Lessee
      Lessor
      License (for use)
      Lodging (lodging space)
      Manufactured buildings
      Manufacturer
      Medical marijuana
      Mining and metallurgical supplies
      Modifier
      Nonprofit entity
      Occupancy (of real property)
      Out-of-City sale
      Out-of-State sale
      Owner-builder
      Person
      Prosthetic
      Qualifying community health center
      Qualifying health care organization
      Qualifying hospital
      Receipt (of notice) by the taxpayer
      Remediation
      Rental equipment
      Rental supply
      Repairer
      Resides within the City
      Restaurant
      Retail sale (sale at retail)
      Retailer (Reg. 100.3)
      Sale
      Solar daylighting
      Solar energy device
      Speculative builder
      Substantially complete
      Supplier
      Tax Collector
      Taxpayer
      Taxpayer Problem Resolution Officer
      Telecommunication service
      Transient
      Utility service
   110    Definitions: income-producing capital equipment. (Reg. 110.1)
      (a)   includes, subject to (d):
         (1)   machinery or equipment (Reg. 110.2)
         (2)   mining
         (3)   telecommunications
         (4)   electrical generation or transmission
         (5)   pipes or valves
         (6)   aircraft instruments
         (7)   aircraft machinery, equipment
         (8)   railroad rolling stock
         (9)   oil/gas drilling equipment
         (10)   urban mass transit vehicles
         (11)   utility services
         (12)   groundwater measuring devices
         (13)   research and development
         (14)   farm machinery and equipment
         (15)   liquid, solid or gaseous chemicals
         (16)   cleanrooms
         (17)   soundstage complex
         (18)   satellite television or data transmission service
         (19)   poultry and eggs
         (20)   control of land, water or air pollution
         (21)   television signals
      (b)   ancillary equipment to remove waste products, except (d).
      (c)   repair and replacement parts
      (d)   definition does not include:
         (1)   expendable materials
         (2)   janitorial equipment and hand tools
         (3)    office equipment, furniture, supplies
         (4)    sales/distribution
         (5)    motor vehicles licensed for road use
         (6)    certain materials
         (7)    motors and pumps for drip irrigation
      (e)   aircraft definitions
         (1)    aircraft simulator or component parts
         (2)    other accessories and related equipment defined
   115   Definitions: computer software; custom computer programming (Reg. 115.1)
      (a)   computer software
      (b)   custom computer programming
Article II - Determination of Gross Income
   200   Determination of gross income: in general.
      (a)   Includes:
         (1)   value from sales of property or service
         (2)   total sale or lease price
         (3)    receipts, cash, barter, exchange, reduction of debt, etc.
         (4)    including deposits and deferred payments (Reg. 200.1)
      (b)   Barter, exchange, trade-outs, etc.
      (c)   No deduction for cost, losses, etc.
      (d)   Gross income, gross receipts or gross proceeds of sales for nuclear fuel
   210   Determination of gross income: transactions between affiliated companies or persons.
   220   Determination of gross income: artificially contrived transactions.
   230   Determination of gross income based upon method of reporting.
      (a)   Cash basis
      (b)   Accrual basis
   240   Exclusion of cash discounts, returns, refunds, trade-in values, vendor-issued coupons, and rebates from gross income.
      (a)   (1)   cash discounts
         (2)   returns
         (3)   trade-ins
         (4)   vendor-issued coupons
         (5)   rebates
         (6)   cash rebate on motor vehicles
      (b)   subsequent period reduction may still be excluded if reported as taxable in prior period.
   250   Exclusion of combined tax from gross income; itemization; notice; limitations.
      (a)   when tax separately collected/charged
         (1)   remittance of all tax collected/charged (Reg. 250.1).
         (2)   itemization
      (b)   when tax has not been separately charged/collected.
   260   Exclusion of fees and taxes from gross income; limitations.
      (a)   registration fees, license fees and taxes.
      (b)   F.E.T. on heavy trucks and trailers.
      (c)   certain state excise taxes, fees and surcharges
      (d)   motor vehicle dealer documentation fees
   265   (Reserved)
   266   Exclusion of motor carrier revenues from gross income.
      (a)   motor carrier subject to State Tax
      (b)   lightweight motor vehicle subject to State Tax
      (c)   leasing a motor vehicle subject to State Tax
      (d)   sale of motor vehicle or parts subject to State Tax
   270   Exclusion of gross income of persons deemed not engaged in business.
      (a)   Definitions
         (1)   Federally exempt organization
         (2)    Governmental entity
         (3)    Non-licensed business
         (4)    Proprietary club
         (5)    Public educational entity
      (b)   Governmental entities, non-licensed businesses, and public educational entities do not have taxable gross income except "proprietary activities" of municipalities (Reg. 270.1)
      (c)   Federally exempt organizations and proprietary clubs exclusion
         (1)   proprietary clubs 15% rule on revenue (Reg. 270.2)
         (2)    unrelated business income
         (3)    (Reserved)
      (d)   Sales or leases to (a) taxable unless licensed and paying a tax on resales/leases income.
      (e)   Franchisees and concessionaires of such do not share their exemption.
      (f)   Purchase by such for own use and storage taxable.
   280   (Reserved)
   285    (Reserved)
   290    (Reserved)
Article III - Licensing and Recordkeeping
   300    Licensing requirements.
      (a)   Who must apply (Reg. 300.1)
         (1)   all subject to Privilege Tax
         (2)    all subject to Use Tax
         (3)    Rental occupancy tax
      (b)   Multiple activities at one location
         (1)   Principal or broker
         (2)   Corporation or subsidiary
         (3)   Solicitors, agents, representatives, brokers and other similar agents
         (4)   Personal use
         (5)   Rental occupancy tax
      (c)   Separate licenses not required
      (d)   Notification of changes
      (e)   Limitation
      (f)   Casual activity
   310   Licensing: special licensing.
      (a)   Partnerships
      (b)   Limited liability companies
      (c)   Corporations
      (d)   Multiple locations
      (e)   Real property rental, leasing and licensing
   315   (Reserved)
   320   License fees; annual renewal; renewal fees.
      (a)   In general
      (b)   Residential real property rental, leasing and licensing
      (c)   Commercial real property rental, leasing and licensing
   330   Licensing; duration; transferability; display; penalties; penalty waiver; relicensing fees; fees collectible as if taxes.
      (a)   Duration
      (b)   Nontransferability; display
      (c)   Penalties; penalty waiver
      (d)   Nonrenewal; penalties
      (e)   Relicensing fees
      (f)   Fee for license copy
      (g)   Fees collectible as if taxes
   340    Licensing: cancellation; revocation.
      (a)   Cancellation if inactive.
      (b)   Revoked for failure to comply.
      (c)   Notice and Hearing
      (d)   Reinstatement
   350   Operating without a license.
   360    Recordkeeping requirements. (Reg. 350.1, Reg. 350.2, Reg. 350.3)
      (a)   Must maintain books and records for limitation period and make available to Tax Collector during any business day; electronic filing.
      (b)   Tax Collector can specify books and records kept after audit reveals inadequate recordkeeping.
   362   Recordkeeping: income.
      (a)   Gross income from activity occurring in city
      (b)   Division of gross income into categories
      (c)   Gross income subject to Arizona transaction privilege taxes divided into categories
      (d)   Gross income claimed to be exempt
         (1)   Sale of rental equipment
         (2)   Any other reason
      (e)   Substantiation of deductions, exemptions, and exclusions
      (f)   Special classes and activities
      (g)   Individual and total transaction amounts required
   364   Recordkeeping: expenditures.
      (a)   Total price of all goods
      (b)   Date of acquisition and seller information
      (c)   Taxes, freight and labor
      (d)   Gross price of exempt acquisitions
      (e)   Documentation required
      (f)   Additional document for specialized business activities or specific exemptions
      (g)   Individual and total transaction amounts required
   366   Recordkeeping: Out-of-city and out-of-state sales.
      (a)   Gross income to be kept separately
      (b)   Documentation required
         (1)   Location of buyer when order placed
         (2)   Location where buyer took delivery
         (3)   Intended location of use or storage
   370   Recordkeeping: claim of exclusion, exemption, deduction, or credit; documentation; liability. (Reg. 360.1, Reg. 360.2)
      (a)   Claim of exemption must be documented.
      (b)   Vendee's claim of exemption shifts tax liability to vendee.
   372   Proof of exemption: sale for resale; sale, rental, lease, or license of rental equipment.
   380   Inadequate or unsuitable records. If records inadequate, taxpayer must either:
      (1)   provide other suitable records, or
      (2)   correct/reconstruct records.
Article IV - Privilege Taxes
   400   Imposition of Privilege Taxes; presumption.
      (a)   Taxes imposed:
         (1)   privilege taxes on gross incomes specified below
         (2)   privilege taxes on rental occupancy
         (3)   privilege taxes on jet fuel
      (b)   Taxes imposed by this Chapter in addition to others.
      (c)   Presumption.
      (d)   Limitation of exemptions, deductions, and credits.
   405    Advertising. (Reg. 405.1, Reg. 405.2)
      (a)   Measure of tax; rate; definition of "local advertising".
      (b)   Exempt local advertising from tax when exempted by State in 1/86.
   407   (Reserved)
   410    Amusements, exhibitions, and similar activities.
      (a)   Measure of tax; rate.
         (1)   Charges for admission or amusement.
         (2)   (Reserved)
      (b)   (Reserved)
   415    Construction contracting: construction contractors. (Reg. 415.1, Reg. 415.2)
      (a)   Measure of tax; rate.
         (1)   Exclusion of groundwater measuring devices.
         (2)   (Reserved)
         (3)   Exclusion of manufactured buildings.
      (b)   Deductions and exemptions.
         (1)   subcontracting
         (2)   35%
         (3)   purchase of income-producing capital equipment
         (4)   installation of income-producing capital equipment
         (5)   raising poultry; eggs
         (6)   cleanrooms
         (7)   control of land, water or air pollution
         (8)   post-construction termite or pest control
      (c)   Subcontractors.
         (1)   Working for another contractor.
         (2)   Working for an owner building for sale.
         (3)   Selling new manufactured buildings.
   416   Construction contracting: speculative builders. (Reg. 416.1, Reg. 416.2)
      (a)   Measure of tax; rate.
         (1)   sales price at close of escrow
         (2)   improved real property
         (3)   sale
         (4)   partially improved residential real property
      (b)   Exclusions
         (1)   prior value for reconstruction
         (2)   Construction contracting fair market value of land sold
         (3)   (Reserved)
         (4)   stipulations for exclusion of gross income
      (c)   Deductions and exemptions
         (1)   exemptions
         (2)    Deductions
         (3)    tax credits
   417   Construction contracting: owner-builders who are not speculative builders.
      (a)   Measure of tax; rate.
         (1)   payments to subcontractors
         (2)   purchases of building materials
      (b)   Deductions and exemptions
         (1)   exemptions
         (2)   deductions
         (3)   tax credits
      (c)   Reporting; statute of limitations.
      (d)   (Reserved)
   418   (Reserved)
   420   (Reserved)
   422   Jet fuel.
      (a)   Tax rate on sales
         (1)   what constitutes gallons sold
         (2)   substitutable terms
      (b)   burden of proof
      (c)   permanent business location of seller determines right to tax
      (d)   rate equivalent to rate at seller’s location
      (e)   exemptions
   425    Job printing. (Reg. 425.1)
      (a)   Measure of tax; rate.
      (b)   Deductions
         (1)   job printing for resale
         (2)   out-of-City sales
         (3)   out-of-State sales
         (4)   job printing for publishers
         (5)   sales to qualifying hospitals, health centers or health care organizations
         (6)   (Reserved)
         (7)   sales of postage and freight
   427   Manufactured buildings
      (a)   Measure of tax; rate
      (b)   Sale of used manufactured buildings
      (c)   Furniture, appliances taxed under retail
      (d)   Trade-ins and tax liability
   430   Timbering and other extraction.
      (a)   Measure of tax; rate.
         (1)   timbering
         (2)   oil and gas extraction/refining
      (b)   Tax based on location of activity, not location of sale.
      (c)   If shipped out-of-state unsold, tax based on value at time of shipment.
      (d)   (Reserved)
   432    Mining.
      (a)   Measure of tax; rate
      (b)   Rate applied to value of entire product
      (c)   if shipped out-of-state unsold, tax based on value at time of shipment.
   435   Publishing and periodicals distribution. (Reg. 435.1)
      (a)   Measure of tax; rate.
         (1)   publishing in the City
         (2)   distribution of periodicals not published in the City
      (b)   Location of publication
      (c)   Subscription income
      (d)   Circulation
      (e)   Allocation of taxes between cities and towns.
         (1)   allocation by circulation in taxing municipalities
         (2)   allocation of balance between locations of publication
      (f)   Sales to qualifying hospitals, health centers or health care organizations
   440   Rental occupancy tax
   444   Hotels.
   445    Rental, leasing, and licensing for use of real property. (Reg. 445.1, Reg. 445.2, Reg. 445.3)
      (a)   Measure of tax, rate.
         (1)   reimbursements for property tax, repairs, improvements
         (2)   charges for services
         (3)   special case telecommunication services
      (b)   Exemption for utility reimbursement based upon separate meter
      (c)   Exemption for qualifying hospital, health center or health care organization
      (d)   Exemption for joint pole use charges.
      (e)   Exemption for rental to nonprofit primary health care facilities.
      (f)   Less than 3 lodging spaces for rent.
      (g)   (Reserved)
      (h)   Exempt lodging rental
      (i)   (Reserved)
      (j)   Exemption for hotels (See Sec. 444).
      (k)   (Reserved)
      (l)    Reserved)
      (m)   Exemption for commercial property
      (n)   use of apartment by employee
      (o)   Incarcerating prisoners
      (p)   Exemption for hospital, any licensed nursing care institution, or any kidney dialysis facility.
      (q)   Exemption for patients receiving "personal care" or "directed care", by any licensed assisted living facility.
      (r)   Income received from the rental of any "low-income unit"
      (s)   Gross proceeds of sales or gross income derived from a commercial lease to an affiliated corporation
   446   (Reserved)
   447    Rental, leasing, or licensing for use of real property: additional tax upon transient lodging. (Reg. 447.1)
   450    Rental, leasing or licensing for use of tangible personal property. (Reg. 450.1, Reg. 450.2, Reg. 450.3)
      (a)   Measure of tax; rate.
      (b)   Special provisions relating to long-term motor vehicle leases
      (c)   Exemptions
         (1)   rent for re-rent
         (2)   semi-permanently or permanently installed in another taxing city (Reg. 450.4)
         (3)   motion picture films, etc. to amusement, etc. businesses
         (4)   (A)   prosthetics
            (B)    income-producing capital equipment
            (C)    mining and metallurgical supplies.
         (5)   to a qualifying hospital, health center or health care organization
         (6)    delivery, installation, repair, maintenance charges
         (7)    joint pole use charges
         (8)   coin-operated washing, drying, dry-cleaning, and car-washing machines
         (9)    aircraft acquired for use outside State
         (10)   alternative fuel vehicles
         (11)   (reserved)
         (12)   ignition interlock devices
   452   (Reserved)
   455   Restaurants and bars.
      (a)   Measure of tax; rate. (Reg. 455.1)
      (b)   Delivery, set-up, and clean-up charges of off-premises restaurants
      (c)   Sales to qualifying hospitals, health centers or health care organizations
      (d)   Sales to commercial airlines
      (e)   Sales to public education entities
      (f)   Accessories defined
   460   Retail sales: measure of tax; burden of proof; exclusions.
      (a)   Measure of tax; rate. (Reg. 460.2, Reg. 460.3, Reg. 460.6)
      (b)   Burden of proof
      (c)   Exclusions
         (1)    stocks, bonds, etc.
         (2)    lottery tickets
         (3)    bullion and monetized bullion (Reg. 460.5)
         (4)    taxable elsewhere in this Chapter (Reg. 460.1)
         (5)    professional services (Reg. 460.4)
         (6)   cash equivalents
      (d)   (Reserved)
      (e)   Seller's business location takes precedence between cities
      (f)    Tax liability based upon seller's location
      (g)   prepaid calling cards
   462   Retail sales: food for home consumption.
      (a)   Tax rate
      (b)   Definitions
         (1)   Eligible grocery business
         (2)    Facilities for the consumption of food
         (3)    Food for consumption on the premises
         (4)    Hot prepared food
         (5)    Premises
         (6)   Food for home consumption
      (c)   Tax-exempt income
         (1)   Sales of food for home consumption
         (2)   Out-of-city sales or out-of-state sales
         (3)   Charges for delivery
         (4)   Food purchased with food stamps
         (5)   Sales of food products by producers
         (6)   Sales to a public educational entity
         (7)   Sales to a nonprofit charitable organization
      (d)   Reporting
      (e)   Record keeping
         (1)   Retailers to maintain accurate, verifiable, and complete records
         (2)   Failure to maintain such records
   465   Retail sales: exemptions.
      (a)   sales for resale (Reg. 465.3)
      (b)   out-of-City sales or out-of-State sales
      (c)   delivery, installation, or other direct customer services
      (d)   repair labor (Reg. 465.1)
      (e)   retail sales: warranty, maintenance, and similar contracts
      (f)   prosthetics
      (g)   income-producing capital equipment
      (h)   rental equipment and rental supplies
      (i)   mining and metallurgical supplies
      (j)   fuels subject to Arizona fuel use tax; natural gas for motor vehicles
      (k)   sales to a licensed construction contractor
      (l)   motor vehicle sales to nonresidents for use outside state
      (m)   component or ingredient parts sold to job printers, manufacturers, or publishers
      (n)   sales made directly to federal government
         (1)   retail sales by manufacturer, modifier, assembler, or repairer
         (2)   retail sales by all others
      (o)   food to restaurants
      (p)   sales to qualifying hospitals, health centers or health care organizations
      (q)   food for home consumption
      (r)   (Reserved)
         (1)    (Reserved)
         (2)    (Reserved)
         (3)    (Reserved)
         (4)    (Reserved)
      (s)   groundwater measuring devices
      (t)   (Reserved)
      (u)   aircraft acquired for use outside the State (Reg. 465.4)
      (v)   sales of food products by producers
      (w)   (Reserved)
      (x)   sales of food to restaurant employees
      (y)   (Reserved)
      (z)   (Reserved)
      (aa)   personal property used in remediation contracting
      (bb)   printed or electronic materials sold to libraries
      (cc)   food and accessories sold to commercial airlines
      (dd)   wireless telecommunications equipment; commissions
      (ee)   wireless telecommunications equipment; sale for resale
      (ff)   sales of alternative fuel; used oil fuel burners
      (gg)   food and accessories sold to educational facilities
      (hh)   personal hygiene items; hotels
      (ii)   fueling compressor equipment
      (jj)   food and accessories sold to nonprofit charitable organizations
      (kk)   sales of alternative fuel vehicles
      (ll)   (Reserved)
      (mm)   renewable energy credits
      (nn)   sales of magazines or other periodicals
      (oo)   sales of paper machine clothing
      (pp)   sales of overhead materials
      (qq)   sales to a qualified environmental technology manufacturer, producer or processor
      (rr)   sales or gross income derived from sales of machinery, equipment, materials
   470   Telecommunication services. (Reg. 470.1)
      (a)   Measure of tax; rate.
         (1)   telecommunication services definition
         (2)    gross income definition
      (b)   Resale telecommunication services
      (c)   Interstate transmissions
      (d)   Tax credit for franchise and license fees paid.
      (e)   Telecommunications services by cable television system
      (f)   prepaid calling cards
      (g)   Internet access services
   475   Transporting for hire. (Reg. 475.1)
      (a)   Railroads
      (b)   Pipelines
      (c)   Aircraft (freight only)
      (d)   Motor vehicles, except:
         (1)   income subject to the State Ton-Mile Tax
         (2)    governmentally adopted urban mass transit
         (3)    (Reserved)
         (4)    (Reserved)
   480   Utility services.
      (a)   Measure of tax; rate.
         (1)    services to in-City residents
         (2)    out-of-City customers
      (b)   Sales of natural gas for generation of electricity deemed retail sales
      (c)   Resale utility services
      (d)   Tax credit for franchise fees paid.
      (e)   Sales to qualifying hospitals, health centers or health care organizations.
      (f)   Sales of natural gas or liquefied petroleum gas for motor vehicles
      (g)   Contributions received in aid of construction
         (1)   amounts received as fees
         (2)   amounts received as reimbursement
      (h)   Sales of alternative fuel to used oil fuel burner
      (i)   Sales or other transfers of renewable energy credits
      (j)   Transfers of electricity
      (k)   (Reserved)
   485   Wastewater removal services
      (a)   Tax rate
         (1)   within city
         (2)   within or without city
      (b)   Qualifying hospital, community health center or health care organization exempt from tax
Article V - Administration
   500   Administration of this Chapter; rule making.
      (a)   Administration vested in the Tax Collector
      (b)   Tax Collector shall prescribe forms and procedures
      (c)   City Council approves Regulations
      (d)   Taxpayer bill of rights
      (e)   Uniform guidelines
   510   Divulging of information prohibited; exceptions.
      (a)   Divulging information prohibited except as provided here
      (b)   City Council authorized examination by another U.S. jurisdiction
      (c)   Tax Collector can provide information to another Arizona privilege tax administration
      (d)   Successors, receivers, trustees, etc.
      (e)   City Attorney authorized to collection agencies
      (f)   Other Arizona City when tax paid to wrong city
      (g)   Others involved in allocation of publishing tax
      (h)   By agreement approved by City Council with another jurisdiction.
   515   Duties of Taxpayer Problem Resolution Officer
      (a)   Assistance to taxpayers
      (b)   Duties of officer
      (c)   Review of actions
      (d)   Quarterly report
   516   Taxpayer assistance orders
      (a)   Taxpayer hardship
      (b)   Release of lien; suspending action
      (c)   Modification, reversal or rescinding of order
      (d)   Statute of limitations; interest on tax obligation
      (e)   Prohibitions on use
         (1)    contest of merits of tax liability
         (2)    substitute for to review actions
   517   Basis for evaluating employee performance
      (a)   Evaluations from taxpayers
      (b)   Limitation on evaluation due to taxes assessed or collected
   520    Reporting and payment of tax.
      (a)   Returns (Reg. 520.1)
      (b)   Payment
      (c)   Requirement of security
      (d)   Method of reporting: "cash basis" or "accrual basis" (Reg. 520.2)
         (1)   all income to be reported by same method
         (2)   special considerations for construction contractors:
            (A)   prime contractors
            (B)    speculative builders
            (C)    other owner-builders
   530   When tax due; when delinquent; verification of return; extensions.
      (a)   Report on same date as state sales tax
      (b)   (Reserved)
      (c)   (Reserved)
      (d)   (Reserved)
      (e)   Extensions
   540    Interest and civil penalties.
      (a)   (Reserved)
      (b)   (Reserved)
      (c)   (Reserved)
      (d)   (Reserved)
      (e)   (Reserved)
      (f)   (Reserved)
      (g)   (Reserved)
      (h)   (Reserved)
      (i)   (Reserved)
   541   Erroneous advice or misleading statements by tax collector; abatement of penalties and interest; definition
      (a)   Prohibition of interest or penalty on deficiency assessments
         (1)   attributable to erroneous written advice
         (2)    misleading statement on tax return form
      (b)   Oral advice not binding
      (c)   Tax return form defined
   542    Prospective application of new law or interpretation or application of law.
      (a)   Prohibition of retroactive application of tax
      (b)   New or additional category or type of business
         (1)   applies prospectively only
         (2)   no retroactive assessment based new interpretation or application
      (c)   Includes policies and procedures which differ from established interpretations
      (d)   Refunds to the person who paid tax
   545   Deficiencies; when inaccurate return is filed; when no return is filed; estimates.
      (a)   Tax Collector may recompute or estimate
         (1)   (Reserved)
         (2)   (Reserved)
      (b)   Estimates; presumption
   546   Closing agreements
      (a)   Terms and conditions for closing agreements
      (b)   Approval required for agreement
      (c)   Agreement final except under certain circumstances; binding nature
      (d)   Annual report required
   550    Limitation periods.
      (a)   Deficiency assessments
      (b)   (Reserved)
      (c)   No limitation if no return filed, fraud, operating without license
      (d)   Special provisions relating to owner-builders
   553    Joint Audits.
      (a)   Waiver of joint audit
      (b)   Tax jurisdiction acceptance of joint audit
         (1)   city or town lack of participation, no audit for 42 months
         (2)   DOR lack of participation, no restrictions
   555   Tax Collector may examine books and other records; failure to provide records.
      (a)   Tax Collector can examine books and records
      (b)   Tax Collector may issue Administrative Request (Reg. 555.1)
      (c)   Failure to provide records can result in 25% penalty
      (d)   Tax Collector may use any generally accepted auditing standards or procedures
      (e)   Failure to keep or provide adequate records allows Tax Collector can estimate
      (f)   When assessment final
   556    No additional audits or proposed assessments; exceptions
      (a)   Limitations on audits after determination of deficiency; exceptions
      (b)   Audit by other taxing jurisdiction not included in prohibition
      (c)   Increases in deficiency prohibited with certain exceptions
   560    Erroneous payment of tax; credits and refunds; limitations.
      (a)   Tax Collector may authorize credits and refunds. Credits canceled within 1 year after issuance
      (b)   (Reserved)
      (c)   (Reserved)
      (d)   Interest on credits or refunds; calculation
      (e)   (Reserved)
      (f)   Allowance/denial of credit is subject to appeal per Section 570.
      (g)   Refunds made from Privilege Tax revenue accounts
   565    Payment of tax by incorrect taxpayer or to the incorrect Arizona city or town.
      (a)   Transfer of tax paid by wrong taxpayer
      (b)   Assignment and waiver requirements
      (c)   Tax paid to wrong city will be remitted to correct city upon signed assignment and waiver
      (d)   A.R.S. Section 42-1452 will govern.
      (e)   "Other city" means State Department of Revenue if city in State Collection Program.
   567    (Reserved)
   570    Administrative review; petition for hearing or for redetermination; finality of order. (State administration and audits)
      (a)   Closing agreements
      (b)   Administrative review
         (1)   petitions of appeal
         (2)    (Reserved)
         (3)    (Reserved)
         (4)    (Reserved)
         (5)    hearings
         (6)    (Reserved)
         (7)    (Reserved)
         (8)    (Reserved)
      (c)   (Reserved)
      (d)   (Reserved)
      (e)   Taxpayer bill of rights - applicability
   570   Administrative review; petition for hearing or for redetermination; finality of order. (State administration and audits)
      (a)   Informal conference with auditor prior to assessment
      (b)   Administrative review
         (1)   filing a petition
         (2)    extension to file a petition
         (3)    requirements for petition
         (4)    transmittal to the hearing officer
         (5)    hearings
         (6)    redetermination
         (7)    hearing ruling
         (8)    notice of refund or adjusted assessment
      (c)   Stipulations that future tax is also protested
      (d)   When assessment final
         (1)    lacking timely-filed petition
         (2)    after taxpayer receives notice, unless appealed
      (e)   Taxpayer bill of rights - applicability
   571    Jeopardy assessments. (Reg. 571.1)
      (a)   If jeopardy assessment, Tax Collector will notify taxpayer at time of assessment, and demand immediate payment
      (b)   Taxpayer must file request for administrative review together with posting bond or collateral within 10 days
      (c)   Bond or collateral
      (d)   If all these conditions are not met, tax becomes final
      (e)   Once these conditions are met, Sec. 570 controls
   572    Expedited review of jeopardy assessments
      (a)   Request for review; determination; time deadlines
      (b)   Civil action on determination of jeopardy assessment
   575    Judicial review.
      (a)   Taxpayer's appeal
      (b)   Tax Collector's appeal
      (c)   Time for appeal
      (d)   Trial de novo; limitation on tax collector
      (e)   Burden of proof
      (f)   No estoppel
      (g)   Counterclaims
   577    Refunds of taxes paid under protest.
   578    Reimbursement of fees and other costs; definitions
      (a)   Grounds for reimbursement
      (b)   Circumstances for denial of reimbursement
      (c)   Itemization of fees and other costs by taxpayer; determination of validity
      (d)   Payment within 30 days if no appeal
      (e)   Limit on amount of reimbursement; exception
      (f)   Definition of “reasonable fees and other costs”
   580    Criminal penalties
      (a)   It is unlawful to knowingly or willfully:
         (1)   fail/refuse to file a return
         (2)    fail/refuse to pay tax when due
         (3)    make false/fraudulent return
         (4)    make false/fraudulent statement to claim tax exemption
         (5)    fail/refuse to permit lawful examination of books or records
         (6)    fail/refuse to remit taxes collected from customer
         (7)    advertise that tax is not a consideration of price
         (8)    fail/refuse to obtain a Privilege License
         (9)    falsify/forge document to obtain an exemption
      (b)   Such acts constitute a Class One Misdemeanor
      (c)   In addition, knowingly swearing to a false statement subject to laws of perjury
   590    Civil actions.
      (a)   Liens
         (1)   City can file a lien for tax, penalty or interest due
         (2)   Lien recording and filing
         (3)   Filing a lien does not preclude any other collection methods
         (4)   Liens can be released in whole or in part upon payment
      (b)   Actions to recover tax
         (1)   cannot begin until tax actually assessed
         (2)   must begin:
            (A)   within 6 years after assessment is final
            (B)   prior to any written agreement between taxpayer and Tax Collector, if one exists
            (C)    at any time upon a lien
   595    Collection of taxes when there is succession in and/or cessation of business.
      (a)   This is in addition to any other provisions in the City Code
      (b)   Taxes due are lien on property
      (c)   Foreclosure or similar transfer of improved real property
      (d)   Back taxes due are liability of:
         (1)   seller if received Certificate at time of sale
         (2)    buyer otherwise
   596    Agreement for installment payments of tax
      (a)   Agreement allowed; financial report
      (b)   Alteration, modification or termination of agreement
      (c)   Offset of tax refunds; tax liens; collection
      (d)   Termination of agreement if collection in jeopardy
      (e)   Changed financial condition and agreements
      (f)   Term of agreement fixed except as provided
      (g)   Refusal to enter into agreement; petition to resolution officer
      (h)   Modifications upon mutual agreement
   597    Private taxpayer rulings; request; revocation or modification; definition
      (a)   Issuance of ruling; prerequisites
      (b)   Revoking or modifying ruling
      (c)   Limitations on retroactive revocation
      (d)   Application of ruling to other taxpayers
      (e)   Appeal of retroactive application of revoked or modified ruling
      (f)   Effect of ruling
      (g)   Prospective nature of ruling
      (h)   Time limit on issuance
      (i)   Ruling is public record after 30 days
      (j)   Definition of private taxpayer ruling
      (k)   State ruling in absence of city ruling on same wording
Article VI - Use Tax
   600    Use tax: definitions.
         Acquire (for Storage or Use)
         Retailer
         Storage (within the City)
         Use (of tangible personal property)
   601    (Reserved)
   602    (Reserved)
   610    Use tax: imposition of tax; presumption.
      (a)   Imposition of tax
      (b)   Measure of tax; rate.
         (1)   cost of goods stored or used in the City
         (2)    gross income by an out-of-City retailer who collects use tax
         (3)    parts used in warranty contracts at cost
         (4)    cost of complementary items
         (5)    (Reserved)
      (c)   Presumption
      (d)   Exclusions
         (1)    stocks, bonds, etc.
         (2)    lottery tickets
         (3)    bullion and monetized bullion
      (e)   (Reserved)
      (f)   Additional Imposition; jet fuel.
   620    Use tax: liability for tax.
      (a)   Any person who uses or stores in the City tangible personal property acquired from a retailer
      (b)   Any retailer not located in the City who is licensed to collect Use Tax
      (c)   Any agent of a retailer not maintaining a place of business within the City who sells or leases tangible personal property within the City
      (d)   Any purchaser or lessor of tangible personal property within the City, who claimed exemption from tax at time of purchase/lease from a retailer
      (e)   Any person using parts to fulfill a warranty contract
   630    Use tax: recordkeeping requirements.
   640    Use tax: credit for equivalent excise taxes paid to another jurisdiction
   650    Use tax: exclusion when acquisition subject to Use Tax is taxed or taxable elsewhere in this Chapter; limitation.
   660    Use tax: exemptions.
      (a)   property brought into the City by a nonresident for personal use
      (b)   property less than $1000 brought into the City by a resident for personal use
      (c)   delivery, installation, or other direct customer services
      (d)   repair services
      (e)   warranty service contracts
      (f)   prosthetics
      (g)   income-producing capital equipment
      (h)   rental equipment and rental supplies
      (i)   mining and metallurgical supplies
      (j)   fuels subject to Arizona fuel use tax
      (k)   building materials used by a construction contractor in construction contracting
      (l)   motor vehicle sales to nonresidents for use outside state
      (m)   component or ingredient parts purchased by job printers, manufacturers, or publishers
      (n)   leases of motion picture film, etc. to an amusement business, etc. to generate income
      (o)   food served to patrons by restaurants
      (p)   purchases/leases by qualifying hospitals, health centers or health care organizations
      (q)   (Reserved)
      (r)   (Reserved)
         (1)    (Reserved)
         (2)    (Reserved)
         (3)    (Reserved)
         (4)    (Reserved)
      (s)   groundwater measuring devices
      (t)   (Reserved)
      (u)   aircraft acquired for use outside the State (Reg. 465.4)
      (v)   sales of food products by producers
      (w)   (Reserved)
      (x)   restaurant employee meals
      (y)   (Reserved)
      (z)   Use tax liability of the City
      (aa)   personal property used in remediation contracting
      (bb)   printed or electronic materials sold to libraries
      (cc)   food and accessories sold to commercial airlines
      (dd)   wireless telecommunications equipment; inducements
      (ee)   (Reserved)
      (ff)   sales of alternative fuel; used oil fuel burners
      (gg)   food and accessories sold to educational facilities
      (hh)   personal hygiene items; hotels
      (ii)   fueling compressor equipment
      (jj)   food and accessories sold to nonprofit charitable organizations
      (kk)   (Reserved)
      (ll)   sales of alternative fuel vehicles
      (mm)   renewable energy credits
      (nn)   magazines or other periodicals
      (oo)   paper machine clothing
      (pp)   overhead materials
      (qq)   sales to a qualified environmental technology manufacturer, producer or processor
      (rr)   machinery, equipment, materials used to construct environmental technology facility
      (ss)   (Reserved)
Regulations
   100.1    Brokers.
   100.2    Delivery, installation, or other direct customer services.
   100.3    Retailers.
   100.4    Sales to Native Americans.
   100.5    Remediation contracting.
   115.1    Computer hardware, software, and data services.
   200.1    When deposits are included in gross income.
   250.1    Excess tax collected.
   270.1    Proprietary activities of municipalities are not deemed activities of a governmental entity.
   270.2    Proprietary clubs.
   300.1    Who must apply for a license.
   300.2    (Reserved)
   310.1    (Reserved)
   310.2    (Reserved)
   310.3    (Reserved)
   350.1    Recordkeeping: income.
   350.2    Recordkeeping: expenditures.
   350.3    Recordkeeping: out-of-City and out-of-State sales.
   360.1    Proof of exemption: sale for resale; sale, rental, lease, or license of rental equipment.
   360.2    Proof of exemption: exemption certificate.
   405.1    Local advertising examples.
   405.2    Advertising activity within the City.
   407.1    (Reserved)
   415.1    Distinction between the categories of construction contracting.
   415.2    Distinction between construction contracting and certain related activities.
   415.3    Construction contracting; tax rate effective date.
   416.1    Speculative builders: homeowner's bona fide non-business sale of a family residence.
   416.2    Reconstruction contracting.
   425.1    Distinction between job printing and certain related activities.
   435.1    Distinction between publication of periodicals and certain related activities.
   435.2    Advertising income of publishers and distributors of newspapers and other periodicals.
   445.1    When the rental, leasing, and licensing of real property is exempt as "casual".
   445.3    Rental, leasing, and licensing of real property as lodging: room and board; furnished lodging.
   447.1    Gross income from rental, leasing, and licensing for use or real property as lodging or lodging space to transients.
   450.1    Distinction between rental, leasing, and licensing for use of tangible personal property and certain related activities.
   450.2    Rental, leasing, and licensing for use of tangible personal property: membership fees; other charges.
   450.3    Rental, leasing, and licensing for use of equipment with operator.
   450.4    Rental, leasing, and licensing for use of tangible personal property: semi-permanently or permanently installed tangible personal property.
   450.5    Rental, leasing, and licensing for use of tangible personal property: delivery, installation, repair, and maintenance charges.
   455.1    Gratuities related to restaurant activity.
   460.1    Distinction between retail sales and certain other transfers of tangible personal property.
   460.2    Retail sales: trading stamp company transactions.
   460.3    Retail sales: membership fees of retailers.
   460.4    Retail sales: professional services.
   460.5    Retail sales: monetized bullion; numismatic value of coins.
   460.6    Retail sales: consignment sales.
   465.1    Retail sales: repair services.
   465.2    Retail sales: warranty, maintenance, and similar service contracts.
   465.3    Retail sales: sale of containers, paper products, and labels.
   465.4    Retail sales: aircraft acquired for use outside the state.
   470.1    Telecommunication services.
   475.1    Distinction between transporting for hire and certain related activities.
   520.1    (Reserved)
   520.2    Change of method of reporting.
   555.1    Administrative Request for the attendance of witnesses or the production of documents; service thereof, remedies and penalties for failure to respond.
   571.1   Collection of tax in jeopardy