Title
AUTHORIZATION TO ENTER INTO A MODIFICATION TO THE INTERGOVERNMENTAL AGREEMENT WITH THE ARIZONA DEPARTMENT OF REVENUE REGARDING ADMINISTRATION OF TAXES
Staff Contact: Tom Duensing, Director, Finance and Technology
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Purpose and Recommended Action
Recommendation
This is a request for City Council to waive reading beyond the title and adopt a resolution authorizing the City Manager to enter into a modification to the intergovernmental agreement with the Arizona Department of Revenue to provide for an interim method for disclosure of information and taxpayer auditing.
Background
In October 2008, the City Council authorized entering into an intergovernmental agreement (C-6636) with the Arizona Department of Revenue for taxpayer joint audits and the uniform method of administration, collection, audit and licensing of transaction privilege tax, use tax, jet fuel excise and use tax and rental occupancy taxes imposed by the State or Cities or Towns.
In June 2013, Governor Brewer signed into law House Bill (HB) 2111 with an implementation date of January 1, 2015. In 2014, HB 2389 adopted several statutory changes as a clean-up amendment to HB 2111. The intent of this legislation is to simplify and centralize transaction privilege (sales) tax administration for businesses operating in Arizona. Upon full implementation, responsibility for tax licensing, remittance, collection, and return processing will shift from the City to the Department of Revenue (DOR). In addition, this legislation includes provisions for sales tax auditing to be coordinated by the State and make changes to the taxability of Prime Contracting.
In October 2014, the implementation of portions of this legislation was delayed to January 1, 2016. Nevertheless, the changes to auditing will move forward on the original implementation date of January 1, 2015.
This modification to the agreement allows the DOR to provide the City with information relating to transaction ...
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