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The minimum records required for persons having expenditures, costs, purchases and rental or lease or license expenses subject to, or exempt or excluded from, tax by this chapter are:
(a) The total price of all goods acquired for use or storage in the city.
(b) The date of acquisition and the name and business address of the seller or lessor of all goods acquired for use or storage in the city.
(c) Documentation of taxes, freight, and direct customer service labor separately charged and paid for each purchase, rental, lease, or license.
(d) The gross price of each acquisition claimed as exempt from tax, and with respect to each transaction so claimed, sufficient evidence to satisfy the tax collector that the exemption claimed is applicable.
(e) As applicable to each taxpayer, documentation sufficient to the tax collector, so that he or she may ascertain:
(1) All construction expenditures and all privilege and use taxes claimed paid, relating to owner-builders and speculative builders.
(2) Disbursement of collected gratuities and related payroll information required of restaurants.
(3) (Reserved).
(4) The validity of any claims of proof of exemption.
(5) A claimed alternative prior value for reconstruction.
(6) All claimed exemptions to the use tax imposed by Article VI of this chapter.
(7) (Reserved).
(8) Payments of tax to the Arizona department of transportation and computations therefor, when a motor-vehicle transporter claims such the exemption.
(9) (Reserved).
(f) Any additional documentation as the tax collector, by regulation, shall deem necessary for any specific class of taxpayer by reason of the specialized business activity of specific exemptions afforded to that class of taxpayer.
(g) In all cases, the books and records of the taxpayer shall indicate both individual transaction amounts and totals for each reporting period for each category of taxable, exempt, and excluded expenditures as defined by this chapter.
(Ord. No. 11219, § 1, 12-9-14, eff. 1-1-15)
(a) Out-of-city sales. Any person engaging or continuing in a business who claims out-of-city sales shall maintain and keep accounting records or books indicating separately the gross income from the sales of tangible personal property from such out-of-city branches or locations.
(b) Out-of-state sales. Persons engaged in a business claiming out-of-state sales shall maintain accounting records or books indicating for each out-of-state sale the following documentation:
(1) Documentation of location of the buyer at the time of order placement; and
(2) Shipping, delivery, or freight documents showing where the buyer took delivery; and
(3) Documentation of intended location of use or storage of the tangible personal property sold to such buyer.
(Ord. No. 11219, § 1, 12-9-14, eff. 1-1-15)
(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)
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