©2000 Model City
Tax Code

Amendments or Special Provisions:

1. Impose an additional 2% bed tax. (effective 11/1/00). An additional 3% bed tax effective 9/1/04.

2. Jet Fuel taxed at $.015 per gallon. (effective 11/1/00)

3. Adopted Appendix IV.

4. Amendment to Section 8A-100 as follows:

"Utility Service" means the producing, providing, or furnishing of electricity, electric lights, current, power or gas (natural or artificial) to consumers or ratepayers.

5. Section 8A-270(b) is amended to read:

(b) Transactions which, if conducted by any other person, would produce gross income subject to tax under this Chapter 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; or persons or gross income immune from such taxation under Federal or State law.

6. Section 8A-477 is added as follows:

Sec. 8A-477. Operating a pipeline.

The tax rate shall be an amount equal to two percent (2%) of the gross income from the business activity upon every person engaging or continuing in the business of operating a pipeline for transporting oil, or natural or artificial gas, or water, through pipes or conduits from a point within the Town to another point in the Town or in the State.

7. Section 480(a) is amended to read:

(a) The tax rate shall be at an amount equal to two percent (2%) of the gross income from the business activity upon every person engaging or continuing in the business of producing, providing, or furnishing the following utility services: electricity, electric lights, current, power, and gas (natural or artificial) to consumers or ratepayers who reside within the Town.

8. Section 8A-500(c) is amended to read:

(c) Rules and Regulations - Apportionment. The Town Clerk may make such rules and regulations as are not inconsistent with the provisions of this Article as may be necessary or desirable to aid in the enforcement of the provisions of this Article. When, by reason of the provisions of the Constitution of the United States or the Constitution of Arizona, a Privilege Tax imposed by this Article cannot be enforced without there being an apportionment according to the amount of business done in the Town of Chino Valley, or in the State of Arizona, as the case may be, the Town Clerk may make such rules and regulations for the apportionment of the tax as are necessary or desirable to overcome the constitutional objections. Except where such Regulations would conflict with administrative regulations adopted by the City Council or with provisions of this Chapter, all regulations on the Transaction Privilege Tax adopted by the Arizona Department of Revenue under the authority of A.R.S. Section 42-1005 shall be considered Regulations of this Chapter and enforceable as such.

9. Section 8A-590(b) is amended to read:

(b) An action may be brought by the Town Attorney or other legal adviser to the Town designated by the Town Council at the request of the Tax Collector, in the name of the Town to recover the amount of any taxes, penalties and interest due and unpaid at any time after thirty (30) days after the delinquency date pursuant to Section 8A-530, and to utilize any and all appropriate remedies as authorized under the laws of the State of Arizona including seeking declaratory relief where the validity or applicability of a tax has been attacked by a taxpayer under this or predecessor ordinances. Such actions may be commenced whether separate criminal charges have been filed to cover alleged failure to comply with this Article, provided, however, that such collection effort is made or the proceedings begun: (a) within six (6) years after the assessment of the tax; or (b) prior to the expiration of any period of collection agreed upon in writing by the Tax Collector and the taxpayer before the expiration of such six (6) year period, or any extensions therefor; or (c) at any time for the collection of tax arising by reason of a tax lien perfected, recorded, or possessed by the Town under this Section or at any time for the collection of tax arising under Section 8A-546. In any action, a certificate by the Tax Collector showing the delinquency is prima facie evidence of the levy of the tax, of the delinquency and of the compliance by the Tax Collector with all the provisions of law relating to the computation and levy of the tax. If the assessment is final, and a certificate by the Tax Collector showing the final assessment is made, there shall be a conclusive presumption in the collection action that the amount of tax is owing (without any offset, and without any right of the taxpayer to question the validity and applicability of the tax).

10. Regulation 8A-270.1 (b)

(b) Producing, providing, or furnishing electricity, electric lights, current, power, gas (natural or artificial) to consumers or ratepayers.

11. Regulation 8A-460.1 (a)

(a) Charges for transfer of tangible personal property included in the gross income of the business activity of persons engaged in the following business activities shall be deemed only as gross income from such business activity and not sales at retail taxed by Section 8A-460:

(1) tangible personal property incorporated into real property as part of reconstruction or construction contracting, per Sections 8A-415 through 8A-418.

(2) (Reserved)

(3) job printing, per Section 8A-425.

(4) mining, timbering, and other extraction, but not sales of sand, gravel, or rock extracted from the ground, per Section 8A-430.

(5) publication of newspapers, magazines, and other periodicals, per Section 8A-435.

(6) rental, leasing, and licensing of real or tangible personal property, per Sections 8A-445 or 8A-450.

(7) restaurants and bars, per Section 8A-455.

(8) telecommunications services, per Section 8A-470.

(9) utility services, per Section 8A-480.

(10) operating a pipeline per Section 8A-477.

12. Reg. 8A-477.1. Operating a pipeline.

A person engaged in a business within the Town of Chino Valley and subject to tax under the provisions of Section 8A-477 of the Town of Chino Valley Transaction Privilege Tax Code, shall be subject to tax as provided herein.

In connection with operating a pipeline for transporting oil, natural or artificial gas, or water through pipe or conduits from a point within the Town to another point in the Town or in the State, in calculating the measure of the tax, the gross income of the taxpayer attributable to value proceeding or accruing from the sale of property, the providing of service, or both, outside the Town shall be reduced by twenty percent (20%).

The Town Clerk hereby states that this ruling is promulgated to carry into effect the provisions of Section 8A-477 of the Transaction Privilege Tax Code of the Town of Chino Valley, Arizona, and Section 8A-500 (c), requiring the adoption of allocation formulae for the apportionment of gross income derived from or attributable to activities engaged in within and without the Town of Chino Valley.

In dealing with any matters within the scope of this ruling for periods prior to the dates of its promulgation or its effectiveness, the Town Clerk shall be guided by the principles set forth in this ruling.

Web. Rev. Date: 3-20-2008

©2001 Model City Tax Code 
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