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(a) For the purposes of this section, the following definitions shall apply:
(1) Federally exempt organization means an organization which has received a determination of exemption, or qualifies for such exemption, under 26 U.S.C. section 501(c) and rules and regulations of the commissioner of internal revenue pertaining to same, but not including a "governmental entity," "nonlicensed business," or "public educational entity."
(2) Governmental entity means the federal government, the State of Arizona, any other state, or any political subdivision, department or agency of any of the foregoing; provided further that persons contracting with such a governmental entity to operate any part of a governmentally adopted and controlled program to provide urban mass transportation shall be deemed a governmental entity in all activities such person performs when engaged in said contract.
(3) Nonlicensed business means any person conducting any business activity for gain or profit, whether or not actually realized, which person is not required to be licensed for the conduct or transaction of activities subject to the tax imposed under this article.
(4) Proprietary club means any club which has qualified or would otherwise qualify as an exempt club under the provisions of 26 U.S.C. section 501(c)(7), (8) and (9), notwithstanding the fact that some or all of the members may own a proprietary interest in the property and assets of the club.
(5) Public educational entity means any educational entity operated pursuant to any provision of A.R.S. title 15.
(b) Transactions which, if conducted by any other person, would produce gross income subject to tax under this article shall not be subject to the imposition of such tax if conducted entirely by a public educational entity, governmental entity, except "proprietary activities" of municipalities as provided by regulation, or nonlicensed business.
(c) Transactions which, if conducted by any other person, would produce gross income subject to the tax under this article shall not be subject to the imposition of such tax if conducted entirely by a federally exempt organization or proprietary club with the following exceptions:
(1) Transactions involving proprietary clubs and organizations exempt under 26 U.S.C. section 501(c)(7), (8) and (9), where the gross revenue of the activity received from persons other than members and bona fide guests of members is in an amount in excess of fifteen (15) percent of total gross revenue, as prescribed by regulation. In the event this fifteen (15) percent limit is exceeded, the entire gross income of such entity shall be subject to the applicable tax.
(2) Gross income from unrelated business income as that term is defined in 26 U.S.C. section 512, including all statutory definitions and determinations, the rules and regulations of the commissioner of internal revenue, and his administrative interpretations and guidelines.
(3) (Reserved.)
(d) Except as may be provided elsewhere in this article, transactions where customers are exempt organizations, proprietary clubs, public educational entities, governmental entities, or nonlicensed businesses shall be deemed taxable transactions for the purpose of the imposition of taxes under this article, notwithstanding that property so acquired may in fact be resold or leased by the acquiring person to others. In the case of sales, rentals, leases or licenses to proprietary clubs or exempt organizations, the vendor may be relieved from the responsibility for reporting and paying tax on such income only by obtaining from its vendee a verified statement that includes:
(1) A statement that when the property so acquired is resold, rented or licensed, that the otherwise exempt vendee chooses, or its required, to pay city public utility tax or an equivalent excise tax on its gross income from such transactions and does in fact file returns on same; and
(2) Proof of public utility licensing of the otherwise exempt vendee; and
(3) Such other information as the tax collector may require.
(e) Franchisees or concessionaires operating businesses for or on behalf of any exempt organization, governmental entity, public educational entity, proprietary club, or nonlicensed business shall not be considered to be such an exempt organization, club, entity or nonlicensed business, but shall be deemed to be a taxpayer subject to the provisions of this article, except as provided in the definition of governmental entity, regarding urban mass transit.
(f) (Reserved.)
(Ord. No. 6926, § 1.B, 4-18-88)
Notwithstanding provisions contained elsewhere in this article, gross income derived from the following transactions and activities that would be considered taxable, occurring elsewhere in the city, shall be deemed exempt from the taxes imposed by this chapter when the transaction or activity occurs on Davis Monthan Air Force Base:
(1) Providing telecommunication or utility service to customers on the base.
(2) (Reserved.)
(Ord. No. 6926, § 1.B, 4-18-88)
DIVISION 3.
LICENSING AND RECORDKEEPING
LICENSING AND RECORDKEEPING
(a) Generally. The following persons shall make application to the tax collector for a public utility tax license, accompanied by a nonrefundable application fee of twenty-five dollars ($25.00) and no person shall engage or continue in business or engage in such activities until he shall have such a license:
(1) Every person desiring to engage or continue in business activities within the city upon which a public utility tax is imposed by this article.
(b) Limitation. The issuance of a public utility license by the tax collector shall in no way be construed as permission to operate a business activity in violation of any other law or regulation to which such activity may be subject.
(c) [License fee.] Licensees whose initial application for a business license is received by the tax collector on or after January 1, 2008, will be subject to an initial annual license fee of forty-five dollars ($45.00) on a proration schedule as follows:
Business Start Date
|
Applicable License Fee
|
January 1--March 31
|
$45.00
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April 1--June 30
|
33.75
|
July 1--September 30
|
22.50
|
October 1--December 31
|
11.25 |
(Ord. No. 6926, § 1.B, 4-18-88; Ord. No. 10448, § 15, 9-5-07, eff. 1-1-08)
(a) Partnerships. Application for a public utility license for a partnership engaging or continuing in business in the city shall provide, as a minimum, the names and addresses of all general partners. Licenses issued to persons engaged in business as partners, limited or general, shall be in the name of the partnership.
(b) Corporations. Application for a public utility license for a corporation engaging or continuing in business in the city shall provide, as a minimum, the names and addresses of both the chief executive officer and chief financial officer of the corporation. Licenses issued to persons engaged in business as corporations shall be in the name of the corporation.
(c) Multiple Locations or Multiple Business Names. A person engaged in or conducting one (1) or more businesses at two (2) or more locations or under two (2) or more business names shall procure a license for each such location or business name. A "location" is a place of a separate business establishment.
(d) Conditions. Licenses shall not be issued until all legal requirements are met. It shall be a condition precedent to the issuance of a license that all statutes, ordinances, regulations and other requirements affecting the public peace, health and safety be complied with in total.
(Ord. No. 6926, § 1.B, 4-18-88)
(a) Except as provided in section 19-920, the privilege license shall be valid only for the calendar year in which it is issued unless renewed each year by filing the appropriate application for renewal and paying the renewal fee of forty-five dollars ($45.00) which is due and payable on January 1 and shall be considered delinquent if not received on or before the last business day of January. Application and payment for renewal must be received within the tax collector's office by such date to be deemed filed and paid.
(b) The public utility license shall be nontransferable between owners or locations, and shall be on display to the public in the licensee's place of business.
(c) Any licensee who permits his license to expire through cancellation as provided in section 19.720,* by his request for cancellation, by surrender of the license, or by the cessation of the business activity for which the license was issued, and who thereafter applies for license, shall be granted a new license as an original applicant and shall pay the current license fee. Any licensee who loses or misplaces his public utility license which is still in effect shall be charged the current license fee for each reissuance of a license.
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* Editors Note: There is no § 19-720; reference presumably should be to § 19-920.
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(d) Any taxpayer who fails to renew his license on or before the date provided in subsection (a) above shall be deemed to be operating without a license after such date and until the appropriate application for renewal and a renewal fee of sixty-seven dollars and fifty cents ($67.50) has been received by the tax collector.
(Ord. No. 6926, § 1.B, 4-18-88; Ord. No. 10448, §§ 16, 17, 9-5-07, eff. 1-1-08)
(a) Cancellation. The tax collector shall be authorized to cancel the city public utility license of any licensee as "inactive" if the taxpayer, required to report monthly to the city, has neither filed any return nor remitted to the city any taxes imposed by this article for a period of six (6) consecutive months; or, if required to report quarterly, has neither filed any return nor remitted any taxes imposed by this article for two (2) consecutive quarters; or, if required to report annually, has either filed any return nor remitted any taxes imposed by this article when such annual report and tax are due to be filed with and remitted to the tax collector.
(b) Revocation. If any licensee fails to pay any tax, interest, penalty, fee or sum required to be paid to the city under this article, or if such licensee fails to comply with any other provisions of this article, the tax collector shall be authorized to revoke the city public utility license of said licensee.
(c) Notice and Hearing. The tax collector shall deliver notice to such licensee of cancellation or revocation of the public utility license. If within twenty (20) days the licensee so notified requests a hearing, he shall be granted a hearing before the tax collector.
(d) Relicensing. After cancellation or revocation of a taxpayer's license, the taxpayer shall not be relicensed until all reports have been filed; all fees, taxes, interest, and penalties due have been paid; and he is in compliance with the provisions of this article.
(Ord. No. 6926, § 1.B, 4-18-88)
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