Welcome to Model City Tax Code

Contact:	Tax Audit Supervisor (480) 350-2955
Taxpayer Problem Resolution Officer:	Tom Duensing (480) 350-8866
Collection By:	Self
Sales Tax %:	1; 1.2 (effective 12/1/93); 1.7 (effective 1/1/97); 1.8 (effective 1/1/01); 2 (effective 7/1/10)
Use Tax %:	1; 1.2 (effective 12/1/93); 1.7 (effective 1/1/97); 1.8 (effective 1/1/01); 2 (effective 7/1/10)
Interest Rate %/month:	(same as state)
License Fee:	Range of $50.00-$10.00 plus a $20.00 application fee (see 16-300 below)
Length of License:	1 year
Criminal Penalty:	Class 1
Date Code Effective:	7-1-87
Chapter #:	16

Amendments or Special Provisions:

1. Impose an additional 2% bed tax. Increased to 3% effective January 1, 2003.

2. Sales of food for home consumption will be taxed a different rate effective 7/1/10. The rate will 1.8%.

Modify Section 16-460(a) entitled "Retail Sales: measure of tax; burden of proof; exclusions." as follows:

(a) The tax rate shall be at an amount equal to two percent (2.0%) of the gross income from the business activity upon every person engaging or continuing in the business of selling tangible personal property at retail, except that the tax rate shall be at an amount equal to one and eight-tenths percent (1.8%) of the gross income from the business activity upon every person engaging or continuing in the business of selling food for home consumption.

3. Amendment to Sec. 16-300 as follows:

Sec. 16-300. Licensing requirements.

(a) The following persons shall make application to the Tax Collector for a Privilege License, accompanied by a non-refundable original application fee of twenty dollars ($20.00), plus a license fee of fifty dollars ($50.00) per year for monthly taxpayers, twenty-five ($25.00) per year for quarterly taxpayers, or ten dollars ($10.00) per year for annual taxpayers as prescribed by Section 16-530 (a) and (b). No person shall engage in or continue in business or engage in such activities until he shall have such a license:

(1) Every person desiring to engage or continue in business activities within the City upon which a Privilege Tax is imposed by this Chapter.

(2) Every person, engaging or continuing in business within the City, storing or using tangible personal property in this City upon which a Use Tax is imposed by this Chapter.

(3) (Reserved)

4. Amendment to Sec. 16-310 (a) and (d) as follows:

Sec. 16-310. Licensing: duration of license; transferability; display.

(a) Except as provided in Section 16-320, the Privilege License shall be valid only for the calendar year in which it is issued unless renewed each year by filing renewal information as required by the tax collector and paying a renewal fee of fifty dollars ($50.00) per year for monthly taxpayers, twenty-five ($25.00) per year for quarterly taxpayers, or ten dollars ($10.00) per year for annual taxpayers as prescribed by Section 16-530 (a) and (b) on or before the last business day of January each year. Information for renewal must be received within the Tax Collector's office by such date to be deemed filed and paid timely.

(d) Any taxpayer who fails to renew his license on or before the date provided in subsection (a) above shall be deemed to be operating without a license. After such date taxpayer is required to pay a fifteen dollar ($15.00) late renewal penalty, in addition to the annual license renewal fee provided in Subsection (a) above.

5. Amendment to Sec. 16-410(a)(2) and (3) (retroactive effective date of 2/1/95) as follows:

(2) (Reserved)

(3) health spas and fitness centers which charge for the use of their premises, whether on a per-event use or for long-term usage, such as membership fees.

Web. Rev. Date: 4-11-2011