©2000 Model City
Tax Code

Amendments or Special Provisions:

1. Amendment to Sec. 100 as follows:

"Combined Taxes" means the sum of all applicable Arizona Transaction Privilege and Use Taxes; all applicable transportation taxes imposed upon gross income by this County as authorized by Article III, Chapter 6, Title 42, Arizona Revised Statutes; all applicable taxes imposed by this Chapter; and all other taxes and fees imposed by this City which are measured by gross income.

2. Sec. 19-130. Persons paying privilege tax not liable for occupational tax under Article I.

Article I of this chapter shall not apply to, or be deemed to impose an occupational license tax on, or require an occupational license from, any person licensed and taxed pursuant to this article."

3. Sec. 19-405. Advertising.

(a) The tax rate on the gross income from the business activity upon every person engaging or continuing in the business of "local advertising" by billboards, direct mail, radio, television, or by any other means shall be at an amount equal to the following percentage schedule for the fiscal years shown:

1990-91 - two percent (2%)
1991-92 - one and one-half percent (1 1/2%)
1992-93 - three quarters of one percent (3/4%)
July 1993 and thereafter - zero percent (0%)

However, commission and fees retained by an advertising agency shall not be includable in gross income from "local advertising". "Local advertising" is all delivery or dissemination of advertising information directly to the public for a consideration, except the following:

(1) The advertising of any business, activity, or product thereof or advertising of a product which is available at any business or activity, where the advertisement does not specifically mention a business or activity within this state by particular location or address, and the entire fee for the advertisement is billed to and paid for by sources outside this state.
(2) (Reserved)
(3) (Reserved)
(4) (Reserved)
(5) (Reserved)
(6) (Reserved)

(b) (Reserved)

4. Imposes a 4% transient rental tax on rent from persons renting accommodations for less than 30 consecutive days and a $1 per night charge per room rented, but not as a part of the model tax code. Effective July 1, 2003 the tax rate increased to 6%.

5. Regulation 19-310.1 is added as follows: (effective January 1, 2008)

Reg. 19-310.1. Proration of initial annual license fee.

Licensees, subject to the provisions of Section 19-310(d), whose initial application for a privilege license is received by the tax collector after January 1, 2008, will be subject to an initial annual license fee imposed by Section 19-31O(a) on a proration schedule as follows:

Business Start Date January 1 - March 31 April 1 - June 30 July 1 - September 30 October 1 - December 31

Applicable License Fee $45.00 $33.75 $22.50 $11.25

6. Ordinance 8766 passed on October 21, 1996 amended two sections of the regulations as they relate to window coverings. The text as it appears in the Tucson Tax Code follows:

Regulation 19-415.2 (d) and (e)

(d) Installation or removal of tangible personal property which has independent functional utility is considered a retail activity.

(1) "Tangible personal property which has independent functional utility" must be able to substantially perform its function(s) without attachment to real property. "Attachment to real property" must include more than connection to water, power, gas, communication, or other services.

(2) Examples of tangible personal property which has independent functional utility include artwork, furnishings, "plug-in" kitchen equipment, or similar items installed by bolts or similar fastenings.

(3) Examples of tangible personal property which does not have independent functional utility include wall-to-wall carpeting, flooring, wallpaper, kitchen cabinets, or "built-in" dishwashers or ranges.

(e) Sale and installation of interior window coverings. Notwithstanding any other provision of this code and regulations pertaining thereto, the sale of interior window coverings is always a retail activity, except when sold and installed by the vendor, in which case it shall be construction contracting.

Regulation 19-460.1 (e) and (f)

(e) Installation or removal of tangible personal property which has independent functional utility is considered a retail activity.

(1) "Tangible personal property which has independent functional utility" must be able to substantially perform its function(s) without attachment to real property. "Attachment to real property" must include more than connection to water, power, gas, communication, or other services.

(2) Examples of tangible personal property which has independent functional utility include artwork, furnishings, "plug-in" kitchen equipment, or similar items installed by bolts or similar fastenings.

(3) Examples of tangible personal property which does not have independent functional utility include wall-to-wall carpeting, flooring, wallpaper, kitchen cabinets, or "built-in" dishwashers or ranges.

(f) Sale and installation of interior window coverings. Notwithstanding any other provision of this code and regulations pertaining thereto, the sale of interior window coverings is always a retail activity, except when sold and installed by the vendor, in which case it shall be construction contracting.

Web. Rev. Date: 3-20-2008

©2001 Model City Tax Code
All rights reserved.