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(a) All deductions, exclusions, exemptions and credits provided in this chapter are conditional upon adequate proof and documentation of such as may be required under A.R.S. § 42-5022 or by this chapter or regulation.
(b) Any person who claims and receives an exemption, deduction, exclusion, or credit to which he is not entitled under this chapter, shall be subject to, liable for, and pay the tax on the transaction as if the vendor subject to the tax had passed the burden of the payment of the tax to the person wrongfully claiming the exemption. A person who wrongfully claimed such exemption shall be treated as if he or she is delinquent in the payment of the tax and shall be subject to interest and penalties upon such delinquency. However, if the tax is collected from the vendor on such transaction it shall not again be collected from the person claiming the exemption, or if collected from the person claiming the exemption it shall not also be collected from the vendor.
(Ord. No. 6674, § 3, 3-23-87; Ord. No. 11219, § 1, 12-9-14, eff. 1-1-15)
A claim of purchase for resale or of purchase, rental, lease, or license for rent, lease, or license is valid only if the evidence is sufficient to persuade a reasonably prudent businessman that the particular item is being acquired for resale or for rental, lease, or license in the ordinary course of business. The fact that the acquiring person possesses a privilege license number, and makes a verbal claim of "sale for resale or lease" or "lease for re-lease" does not meet this burden and is insufficient to justify an exemption. The "reasonable evidence" must be evidence which exists objectively, and not merely in the mind of the vendor, that the property being acquired is normally sold, rented, leased, or licensed by the acquiring person in the ordinary course of business. Failure to obtain such reasonable evidence at the time of the transaction will be a basis for disallowance of any claimed deduction on returns filed for such transactions.
(Ord. No. 11219, § 1, 12-9-14, eff. 1-1-15)
In the event the records provided by the taxpayer are considered by the tax collector to be inadequate or unsuitable to determine the amount of the tax for which such taxpayer is liable under the provisions of this chapter, it is the responsibility of the taxpayer either:
(a) To provide such other records required by this chapter or regulation; or
(b) To correct or to reconstruct his or her records, to the satisfaction of the tax collector.
(Ord. No. 11219, § 1, 12-9-14, eff. 1-1-15)
DIVISION 4.
PRIVILEGE TAXES
PRIVILEGE TAXES
Editor’s note – Ordinance No. 11518 put into effect tax increases required by Proposition 203; however, they have no legal effect unless approved by the Arizona Model City Tax Code Commission. Code sections affected are: 19-410(d), 19-415(d), 19-416(d), 19-417(d), 19-425(c), 19-427(e), 19-430(a), 19-432(d), 19-432(d), 19-435(g), 19-445(t), 19-450(d), 19-455(g), 19-460(i), 19-470(h), 19-475(d), 19-480(l), and 19-610(g).
(a) Taxes Levied. There are hereby levied and imposed, subject to all other provisions of this article, the following privilege taxes for the purpose of raising revenue to be used in defraying the necessary expenses of the city, such taxes to be collected by the tax collector:
(1) A privilege tax upon persons on account of their business activities, to the extent provided elsewhere in this division, to be measured by the gross income of persons, whether derived from residents of the city or not, or whether derived from within the city or from without.
(2) Reserved.
(b) Taxes Imposed by this Article are in Addition to Others. Except as specifically designated elsewhere in this article, each of the taxes imposed by this article shall be in addition to all other licenses, fees and taxes levied by law, including other taxes imposed by this article.
(c) Presumption. For the purpose of proper administration of this article and to prevent evasion of the taxes imposed by this article, it shall be presumed that all gross income is subject to the tax until the contrary is established by the taxpayer.
(d) Limitation of Exemptions, Deductions and Credits Allowed Against the Measure of Taxes Imposed by this Article. All exemptions, deductions and credits set forth in this article shall be limited to the specific activity or transaction described and not extended to include any other activity or transaction subject to the tax.
(Ord. No. 6674, § 3, 3-23-87)
(a) The tax rate shall be at an amount equal to zero percent (0%) of the gross income from the business activity upon every person engaging or continuing in the business of "local advertising" by billboards, direct mail, radio, television, or by any other means. However, commission and fees retained by an advertising agency shall not be includable in gross income from "local advertising". All delivery or disseminating of information directly to the public or any portion thereof for a consideration shall be considered "local advertising", except the following:
(1) The advertising of a product or service which is sold or provided both within and without the state by more than one "commonly designated business entity" within the state, and in which the advertisement names either no "commonly designated business entity" within the state or more than one "commonly designated business entity". "Commonly designated business entity" means any person selling or providing any product or service to its customers under a common business name or style, even though there may be more than one (1) legal entity conducting business functions using the same or substantially the same business name or style by virtue of a franchise, license, or similar agreement.
(2) Advertising of a facility or of a service or activity in which neither the facility nor a business site carrying on such service or activity is located within the state.
(3) The advertising of a product which may only be purchased from an out-of-state supplier.
(4) Political advertising for United States Presidential and Vice Presidential candidates only.
(5) Advertising by means of product purchase coupons redeemable at any retail establishment carrying such product but not product coupons redeemable only at a single commonly designated business entity.
(6) Advertising transportation services where a substantial portion of the transportation activity of the business entity advertised involves interstate or foreign carriage.
(b) Reserved.
(Ord. No. 6674, § 3, 3-23-87; Ord. No. 7436, § 1, 6-18-90; Ord. No. 10949, § 3, 12-13-11)
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