1 / 22

HB2111: Effective 1/01/2015

HB2111: Effective 1/01/2015. First, An Important Update! State Administration Predicated on providing 18 Self-collecting Cities with data consistent with their current systems Gross receipts, separate deductions, amount paid -- By Classification, by each Location in town

kamuzu
Télécharger la présentation

HB2111: Effective 1/01/2015

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. HB2111: Effective 1/01/2015 First, An Important Update! • State Administration • Predicated on providing 18 Self-collecting Cities with data consistent with their current systems • Gross receipts, separate deductions, amount paid -- By Classification, by each Location in town • ADOR originally planned to focus only on making changes for the 18 required by statute • We are working with ADOR to include ALL Program cities in the changes, giving you the expanded data the Self-collecting cities have enjoyed

  2. Model City Tax Code… … is designed to assist the business community in determining which items are taxed by each individual city and town and which items are exempt from taxation.

  3. History • Before 1984: • Each city and town created and maintained its own code, making multi-jurisdictional business increasingly complex. • 1984: • State and Phoenix Chambers attempt preemption of local sales tax authority. • Legislature creates the Municipal Sales Tax Study Commission, includes policy makers and business leaders.

  4. History Continued • Municipal Sales Tax Study Commission: • Joint Licensing • Joint Auditing • Coordination of State & Local Sales Tax Regulations • Model Tax Reporting Form • Model City Sales Tax Code • 1985: • First draft completed. • Business community rejects draft. • Second draft completed.

  5. History Continued 1986: • State Chamber attempts to mandate a uniform base through preemption legislation • Third Draft distributed to cities and business community 1987: • Preemption bill fails • All cities adopt Model City Sales Tax Code

  6. History Continued 1988: • Legislature creates Model Sales Tax Code Commission, includes city representatives, business leaders, and the Director of DOR. • Business community agrees to 4 years of peace 1993: • Tucson Chamber creates bill to place Model City Tax Code in statute. Bill fails. • ATRA and business community pursue preemptive legislation for 1994 session.

  7. History Continued • 1994: • ATRA bill fails • Negotiations produce compromise: • Cities adopt set of amendments for manufacturing and TP rights • 5 years of no preemption legislation. • 1999: • Limited municipal authority to go outside the Model City Tax Code • Form Joint Legislative Study Committee to pursue elimination of the Model City Tax Code.

  8. History Continued • 2000: • Study Committee gives no substantial recommendations • Non-program cities agree to administrative changes: • Joint auditing at the taxpayer’s option (MJAC) • Consistency between cities and interpretations • Establish Municipal Tax Hearing Office for Appeals. • Continuing Themes: • Business community dislikes complexity • Cities want to maintain local authority • Bipartisan support for change • Proactive approach is critical • Few states allow this much local control

  9. Sections and Regulations Summary Main Goal: Provide a greater degree of simplicity and uniformity to ease the burden on businesses.

  10. Sections and Regulations Index • Article I – General Conditions and Definitions • Article II – Determination of Gross Income • Article III – Licensing & Recordkeeping • Article IV – Privilege Taxes • Article V – Administration • Article VI – Use Tax • Article VII – See Prescott, Williams, Winslow and Yuma individual pages; Access to Care

  11. Appendices Summary • Retain the right of individual cities and towns to determine the items taxed, and exemptions granted. • Examples: • Tax food • Residential Rental • Use tax

  12. Appendices Index • Appendix I – Modifications to Model City Code for Cities and Towns in the State Collection System • Appendix II – Model Options • Appendix III – Local Options • Appendix IV – Modifications to the Model City Tax Code for Cities and Towns in State Collection System Performing Supplementary Local Audits

  13. Appendix II & III: The Options Model Options Allows Cities and Towns to omit language from the Model City Tax Code. Local Options Allows Cities and Towns to add or substitute language to the Model City Tax Code.

  14. Option Charts Displays every option that each city has chosen in a concise and comprehensible way.

  15. Unified Audit Committee The UAC is a group of local tax officials and DOR representatives that coordinate joint audit activities among the various jurisdictions. The UAC also publishes uniform guidelines that interpret the Model City Tax Code.

  16. Municipal Tax Code Commission Summary The MTCC considers important business related to the Model City Tax Code and creates an annual report for legislative leadership. 10 members: • 1 representative from the Department of Revenue • 9 Mayors or Councilmembers from various cities Five are appointed by the Governor, and two each from the Senate President and the Speaker of the House. No more than two members may be from the same city or town, and each have a term of 3 years.

  17. What is on the Horizon? • HB2111 • Model Code Update Efforts

  18. HB2111: Effective 1/01/2015 Three Key Aspects: • State Administration • One point of contact • One tax return; one point of collection • Online portal • Single Audit • All audits cover all jurisdictions • State & City auditors; administered by ADOR • Audit Manual; Training; Certification • One appeals process • Contracting • Shift taxation of Repair Contracting to tax materials at the contractor’s point of purchase

  19. HB2389: TPT Clean-up Bill Key Aspects: • Licensing • State adopts annual renewal • City tax license capped at $50; penalty $25 • Concern: No license for Use Tax/Zero TPT Liability • Contracting • Changes Repairman deduction to exemption • License Renewal • Requires ADOR to send a single renewal for 2015 covering all jurisdictions • ADOR plans to use responses to build taxpayer database – We want conversion of our existing taxpayer data • Online portal • Eliminated – AZTAXES.GOV • Requires all taxpayers with 2 or more locations to file online

  20. Model Code Update We continue to seek ways to simplify the tax code and bring us closer to uniformity with the State code while retaining the authority of local jurisdictions to adapt the code to the local economy. • Ongoing elimination of Green Page items • Changes to the Retail classification • Uniform Licensing • Separation of Residential & Commercial Rental • Manufactured Housing • Reduction and Reorganization of Options

  21. www.azleague.org ModelCityTaxCode.az.gov 1820 W. Washington Street Lee Grafstrom Phoenix, AZ 85007 Tax Policy Analyst 602-258-5786

More Related