RESOLUTION 5142: AUTHORIZATION TO ENTER INTO A MODIFICATION TO THE INTERGOVERNMENTAL AGREEMENT (C-6636) WITH THE ARIZONA DEPARTMENT OF REVENUE RELATING TO THE ADMINISTRATION OF CERTAIN TAXES
Staff Contact: Vicki Rios, Director, Budget and Finance
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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 an existing intergovernmental agreement (IGA) C-6636 with the Arizona Department of Revenue (DOR) regarding the administration of certain taxes imposed by the City which are commonly referred to as Transaction Privilege (Sales) Taxes. The modification to the intergovernmental agreement is retroactive to July 1, 2016...body
Background
In October 2008, the City Council authorized entering into an intergovernmental agreement (C-6636) with the DOR for taxpayer joint audits and a uniform method of administration, collection, audit and licensing of transaction privilege tax, use tax, jet fuel excise and use tax and rental occupancy taxes (collectively referred to as TPT) 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 DOR. In addition, this legislation included provisions for sales tax auditing to be coordinated by the State and made changes to the taxability of Prime Contracting.
In October 2014, the implementation of portions of this legislation was delayed. Nevertheless, the changes to auditing moved forward on the original implementation date o...
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