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In the event the hearing officer's decision or a final judgment by the court is rendered in favor of the taxpayer to recover protested taxes, it shall be the duty of the tax collector, upon receipt of such decision or of a certified copy of such final judgment, to authorize a warrant in favor of the taxpayer in an amount equal to the amount of the tax found by such decision or by the final judgment to have been paid under protest; and such warrant shall include the amount of interest or other cost that may have been recovered against the city by the final judgment in such action in the courts, to be paid from the privilege tax revenue accounts.
(Ord. No. 6674, § 3, 3-23-87)
(a) A taxpayer who is a prevailing party may be reimbursed for reasonable fees and other costs related to any administrative proceeding brought by the taxpayer pursuant to section 19-570(b). for purposes of this section, a taxpayer is considered to be the prevailing party only if both of the following are true:
(1) The tax collector's position was not substantially justified.
(2) The taxpayer prevails as to the most significant issue or set of issues.
(b) Reimbursement under this section may be denied if any of the following circumstances apply:
(1) During the course of the proceeding the taxpayer unduly and unreasonably protracted the final resolution of the matter.
(2) The reason that the taxpayer prevailed is due to an intervening change in the applicable law.
(c) The taxpayer shall present an itemization of the reasonable fees and other costs to the taxpayer problem resolution officer within thirty (30) days after receipt by the taxpayer of a notice of refund or recalculated assessment issued by the tax collector pursuant to section 19-570(b)(8). The taxpayer problem resolution officer shall determine the validity of the fees and other costs within thirty (30) days after receiving the itemization. The taxpayer problem resolution officer's decision is considered a final decision. Either the taxpayer or the tax collector may seek judicial review of the taxpayer problem resolution officer's decision. An action for judicial review, however, shall not be commenced more than thirty (30) days after receipt of the resolution officer's decision.
(d) In the event judicial review is not sought pursuant to subsection (c) above, the city shall pay the fees and other costs awarded as provided in this section within thirty (30) days after demand by a person who has received an award pursuant to this section.
(e) Reimbursement to a taxpayer under this section shall not exceed twenty thousand dollars ($20,000.00) or actual monies spent, whichever is less. The reimbursable attorney or representative fees shall not exceed one hundred dollars ($100.00) per hour or actual monies spent, whichever is less, unless the taxpayer problem resolution officer determines that an increase in the cost of living or a special factor such as the limited availability of qualified attorneys or representatives for the proceeding involved justifies a higher fee.
(f) For purposes of this section "reasonable fees and other costs" means fees and other costs that are based on prevailing market rates for the kind and quality of the furnished services, but not exceeding the amounts actually spent for expert witnesses, the cost of any study, analysis, report, test or project that is found to be necessary to prepare the party's case and necessary fees for attorneys or other representatives.
(Ord. No. 8784, § 25, 12-2-96)
(a) It is unlawful for any person to knowingly or willfully:
(1) Fail or refuse to make any return required by this article.
(2) Fail to remit as and when due the full amount of any tax or additional tax or penalty and interest thereon.
(3) Make or cause to be made a false or fraudulent return.
(4) Make or cause to be made a false or fraudulent statement in a return, in written support of a return, or to demonstrate or support entitlement to a deduction, exclusion, or credit or to entitle the person to an allocation or apportionment or receipts subject to tax.
(5) Fail or refuse to permit any lawful examination of any book, account, record or other memorandum by the tax collector.
(6) Fail or refuse to remit any tax collected by such person from his customer to the tax collector before the delinquency date next following such collection.
(7) Advertise or hold out to the public in any manner, directly or indirectly, that any tax imposed by this article, as provided in this article, is not considered as an element in the price to the consumer.
(8) Fail or refuse to obtain a privilege license or to aid or abet another in any attempt to intentionally refuse to obtain such a license or evade the license fee.
(9) Reproduce, forge, falsify, fraudulently obtain or secure, or aid or abet another in any attempt to reproduce, forge, falsify, or fraudulently obtain or secure, an exemption from taxes imposed by this article.
(b) The violation of any provision of subsection (a) above shall constitute a class 2 misdemeanor.
(c) In addition to the foregoing penalties, any person who shall knowingly swear to or verify any false or fraudulent statement, with the intent aforesaid, shall be guilty of the offense of perjury and on conviction thereof shall be punished in the manner provided by law.
(Ord. No. 6674, § 3, 3-23-87)
(a) Liens.
(1) Any tax, penalty, or interest imposed under this article which has become final, as provided in this article, shall become a lien when the city perfects a notice and claim of lien setting forth the name of the taxpayer; the amount of the tax, penalty, and interest; the period or periods for which the same is due; and the date of accrual thereof, the amount of the recording costs by the county recorder in any county in which the taxpayer owns real property and the documentation and lien processing fees imposed by the city council and further stating that the city claims a lien therefor.
(2) The notice of claim of lien shall be signed by the revenue administrator under his official seal or the official seal of the city, and, with respect to real property, shall be recorded in the office of the county recorder of any county in which the taxpayer owns real property, and, with respect to personal property, shall be filed in the office of the secretary of state. After the notice and claim of lien is recorded or filed, the taxes, penalties, and interest and recording costs and lien processing fees referred to above in the amounts specified therein shall be a lien on all real property of the taxpayer located in such county where recorded, and all tangible personal property of the taxpayer within the state, superior to all other liens and assessments recorded or filed subsequent to the recording or filing of the notice and claim of lien.
(3) Every tax and any increases, interest, penalties, and recording costs and lien processing fees referred to above, shall become from the time the same is due and payable a personal debt from the person liable to the city, but shall be payable to and recoverable by the tax collector and which may be collected in the manner set forth in subsection (b) below.
(4) Any lien perfected pursuant to this section shall, upon payment of the taxes, penalties, interest, recording costs and lien processing fees referred to above and lien release fees imposed by the county recorder in any county in which the lien was recorded, thereby be released by the tax collector in the same manner as mortgages and judgments are released. The tax collector may, at his sole discretion, release a lien in part, that is, against only specified property, for partial payment of moneys due the city.
(b) Actions To Recover Tax. An action may be brought by the city attorney or other legal advisor to the city designated by the city council, at the request of the tax collector, in the name of the city, to recover the amount of any taxes, penalties interest recording costs, lien processing fees and lien release fees due under this article; provided that:
(1) No action or proceeding may be taken or commenced to collect any taxes levied by this article until the amount thereof has been established by assessment, correction, or reassessment; and
(2) Such collection effort is made or the proceedings begun:
a. Within six (6) years after the assessment of the tax; or
b. Prior to the expiration of any period of collection agreed upon in writing by the tax collector, and the taxpayer before the expiration of such six-year period, or any extensions thereof; or
c. At any time for the collection of tax arising by reason of a tax lien perfected, recorded, or possessed by the city under this section.
(Ord. No. 6674, § 3, 3-23-87; Ord. No. 8440, § 20, 1-23-95)
(a) In addition to any remedy provided elsewhere in this Code that may apply, the tax collector may apply the provisions of subsections (b) through (d) below concerning the collection of taxes when there is succession in and/or cessation of business.
(b) The taxes imposed by this article are a lien on the property of any person subject to this article who sells his business or stock of goods, or quits his business, if the person fails to make a final return and payment of the tax within fifteen (15) days after selling or quitting his business.
(c) Any person who purchases, or who acquires by foreclosure, by sale under trust deed or warranty deed in lieu of foreclosure, or by any other method, improved real property or a portion of improved real property for which the privilege tax imposed by this article has not been paid shall be responsible for payment of such tax as a speculative builder or owner-builder, as provided in Sec. 19-416 and Sec. 19-417.
(1) Any person who is a creditor or an affiliate of creditor, who acquires improved real property directly or indirectly from the creditor's debtor by any means set forth in this subsection, shall pay the tax based on the amount received by the creditor or its affiliate in a subsequent sale of such improved real property to a party unrelated to the creditor, regardless of when such subsequent sale takes place. Such tax shall be due in the month following the month in which the sale of the improved real property by the creditor or its affiliate occurs. Notwithstanding the foregoing, if the real property meets the definition of partially improved residential real property in Sec. 19-416(a)(4) and all of the requirements of Sec. 19-416(b)(4) are met by the parties to the subsequent sale transaction, then the tax shall not apply to the subsequent sale.
(2) In the event a creditor or its affiliate uses the acquired improved real property for any business purpose, other than operating the property in the manner in which it was operated, or was intended to be operated, before the acquisition or in any other manner unrelated to selling the property, the tax shall be due. The gross income upon which the tax shall be determined pursuant to Sec. 19-416 and Sec. 19-417 shall be the fair market value of the improved real property as of the date of acquisition. The tax shall be due in the month following the month in which such first business use occurs. When applicable, the credit bid shall be deemed to be the fair market value of the property as of the date of acquisition.
(3) Once the subsequent sale by the creditor or its affiliate has occurred and the creditor or its affiliate has paid the tax due from it pursuant to this subsection, neither the creditor nor its affiliate, nor any future owner, shall be liable for any outstanding tax, penalties or interest that may continue to be due from the debtor based on the transfer from the debtor to the creditor or its affiliate.
(4) If the tax liability imposed by either Sec. 19-416 or Sec. 19-417 on the transfer of the improved real property to the creditor or its affiliate, or any part thereof, is paid to the tax collector by the debtor subsequent to payment of the tax by the creditor or its affiliate, the amount so paid may constitute a credit, as equitably determined by the tax collector in good faith, against the tax imposed on the creditor or its affiliate by either paragraph (1) or paragraph (2) of this subsection.
(5) Notwithstanding anything in this chapter to the contrary, if a creditor or its affiliate is subject to tax as described in paragraph (1) or paragraph (2) of this subsection and such creditor or affiliate has not previously been required to be licensed, such creditor or affiliate shall become licensed no later than the date on which the tax is due.
(d) A person's successors or assignees shall withhold from the purchase money an amount sufficient to cover the taxes required to be paid, and interest or penalties due and payable, until the former owner produces a receipt from the tax collector showing that all city tax has been paid or a certificate stating that no amount is due as then shown by the records of the tax collector. The tax collector shall respond to a request from the seller for a certificate within fifteen (15) days by either providing the certificate or a written notice stating why the certificate cannot be issued.
(1) If a subsequent audit shows a deficiency arising before the sale of the business, the deficiency is an obligation of the seller and does not constitute a liability against a buyer who has received a certificate from the tax collector.
(2) If the purchaser of a business or stock of goods fails to obtain a certificate as provided by this section, he is personally liable for payment of the amount of taxes required to be paid by the former owner on account of the business so purchased, with interest and penalties accrued by the former owner or assignees.
(Ord. No. 6674, § 3, 3-23-87; Ord. No. 6938, § 17, 4-25-88; Ord. No. 10911, § 6, 8-9-11, eff. 9-30-09)
(a) The city may enter into an agreement with a taxpayer to allow the taxpayer to satisfy a liability for any tax imposted [imposed] by this chapter by means of installment payments. The tax collector may require a taxpayer who requests an installment payment agreement to complete a financial report in such form and manner as the tax collector may prescribe.
(b) The tax collector, without notice, may alter, modify or terminate an installment payment agreement if the taxpayer:
(1) Fails to pay an installment at the time the installment payment is due under the agreement.
(2) Fails to pay any other tax liability at the time the liability is due.
(3) Fails to file any tax report or return at the time the report or return is due.
(4) Fails to furnish any information requested by the tax collector within thirty (30) days after receiving a written request for such information.
(5) Fails to notify the tax collector of a material improvement in the taxpayer's financial condition above the income previously reported in the most recent income statement within thirty (30) days after the material improvement.
(6) Provides inaccurate, false or incomplete information to the tax collector.
(c) Notwithstanding any installment payment agreement, the tax collector may offset any tax refunds against the liabilities provided for in the installment payment agreement, may file and perfect any tax liens and, in the event the taxpayer breaches any term or provision of the installment payment agreement, may engage in collection activities.
(d) The tax collector, without notice, may terminate an installment payment agreement if the tax collector believes that the collection of tax to which the payment agreement pertains is in jeopardy.
(e) If the tax collector determines that the financial condition of a taxpayer has improved, the tax collector may alter, modify or terminate the agreement by providing notice to the taxpayer at least thirty (30) days before the effective date of the action. The notice shall include the reasons why the tax collector believes the alteration, modification or termination is appropriate.
(f) An installment payment agreement shall remain in effect for the term of the agreement except as otherwise provided in this section.
(g) A taxpayer who is aggrieved by a decision of the tax collector to refuse to enter into an installment payment agreement or to alter, modify or terminate an agreement entered into pursuant to this section may petition the taxpayer problem resolution officer to review that determination. The taxpayer problem resolution officer may stay such alteration, modification or termination pending its review and may modify or nullify the determination.
(h) The city and the taxpayer may modify any installment payment agreement at any time by entering into a new or modified agreement.
(Ord. No. 8784, § 26, 12-2-96)
(a) The tax collector shall issue private taxpayer rulings to taxpayers and potential taxpayers on request. Each request shall be in writing and shall:
(1) State the name, address and, if applicable, taxpayer identifying number of the taxpayer or potential taxpayer who requests the ruling.
(2) Describe all facts that are relevant to the requested ruling.
(3) State whether, to the best knowledge of the taxpayer or potential taxpayer, the issue or related issues are being considered by the tax collector or any other taxing jurisdiction in connection with an active audit, protest or appeal that involves the taxpayer or potential taxpayer and whether the same request has been or is being submitted to another taxing jurisdiction for a ruling.
(4) Be signed by the taxpayer or potential taxpayer who makes the request or by an authorized representative of the taxpayer or potential taxpayer.
(b) A private taxpayer ruling may be revoked or modified by either:
(1) A change or clarification in the law that was applicable at the time the ruling was issued, including changes or clarifications caused by regulations and court decisions.
(2) Actual written notice by the tax collector to the last known address of the taxpayer or potential taxpayer of the revocation or modification of the private taxpayer ruling.
(c) With respect to the taxpayer or prospective taxpayer to whom a private taxpayer ruling is issued, the revocation or modification of a private taxpayer ruling shall not be applied retroactively to tax periods or tax years before the effective date of the revocation or modification and the tax collector shall not assess any penalty or tax attributable to erroneous advice that is furnished to the taxpayer or potential taxpayer in the private taxpayer ruling if:
(1) The taxpayer reasonably relied on the private taxpayer ruling.
(2) The penalty or tax did not result either from a failure by the taxpayer to provide adequate or accurate information or from a change in the information.
(d) A private taxpayer ruling may not be relied upon, cited nor introduced into evidence in any proceeding by any taxpayer other than the taxpayer who received the ruling.
(e) A taxpayer may appeal the propriety of a retroactive application of a revoked or modified private taxpayer ruling by filing a written petition with the tax collector pursuant to section 19-570 within forty-five (45) days after receiving written notice of the intent to retroactively apply a revoked or modified private taxpayer ruling.
(f) A private taxpayer ruling constitutes the tax collector's interpretation of the sections of this chapter only as they apply to the taxpayer making, and the particular facts contained in, the request.
(g) A private taxpayer ruling which addresses a taxpayer's ongoing business activities will apply only to transactions that occur or tax liabilities that accrue from and after the date of the taxpayer's ruling request.
(h) The tax collector shall attempt to issue private taxpayer rulings within forty-five (45) days after receiving the written request and on receiving the facts that are relevant to the ruling. If the ruling is expected to be delayed beyond the forty-five (45) days, the tax collector shall notify the requestor of the delay and the proposed date of issuance.
(i) Within thirty (30) days after being issued, the tax collector shall maintain the private taxpayer ruling as a public record and make it available at a reasonable cost for public inspection and copying. The text of private taxpayer rulings are open to public inspection subject to the confidentiality requirements prescribed by section 19-510.
(j) In this section, "private taxpayer ruling" means a written determination by the tax collector issued pursuant to this section that interprets and applies one (1) or more sections contained in this article and any applicable regulations.
(k) A private taxpayer ruling issued by the Arizona Department of Revenue pursuant to A.R.S. § 42-2101 may be relied upon by the taxpayer to whom the ruling was issued and must be recognized and followed by any city in which such taxpayer has obtained a privilege license if the city has not issued a ruling addressing the facts described in the taxpayer's ruling request and the statute at issue in the taxpayer's ruling request is, in essence, worded and written the same as the applicable section hereunder.
(Ord. No. 8784, § 27, 12-2-96; Ord. No. 10361, § 14, 12-19-06)
DIVISION 6.
USE TAX
USE TAX
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).
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