(a) The tax rate
shall be at an amount equal to _______ percent (___%) of the gross
income from the business activity upon every person engaging or continuing
in the business of producing, providing, or furnishing utility services,
including electricity, electric lights, current, power, gas (natural
or artificial), or water to:
(1) consumers
or ratepayers who reside within the City.
(2) (Reserved)
++(Local
Option #GG:
(2) consumers
or ratepayers of this City, whether within the City or without,
to the extent that this City provides such persons utility services,
excluding consumers or ratepayers who are residents of another city
or town which levies an equivalent excise tax upon this City for
providing such utility services to such persons.)++
(b) Exclusion
of certain sales of natural gas to a public utility. Notwithstanding
the provisions of subsection (a) above, the gross income derived from
the sale of natural gas to a public utility for the purpose of generation
of power to be transferred by the utility to its ratepayers shall
be considered a retail sale of tangible personal property subject
to Sections ___-460 and ___-465, and not considered gross income taxable
under this Section.
(c) Resale
utility services. Sales of utility services to another provider
of the same utility services for the purpose of providing such utility
services either to another properly licensed utility provider or directly
to such purchaser's customers or ratepayers shall be exempt and deductible
from the cross income subject to the tax imposed by this Section,
provided that the purchaser is properly licensed by all applicable
taxing jurisdictions to engage or continue in the business of providing
utility services, and further provided that the seller maintains proper
documentation, in a manner similar to that for sales for resale, of
such transactions.
**((d)
Tax credit offset for franchise fees.
There shall be allowed as an offset any franchise fees paid to the
City pursuant to the terms of a franchise agreement. However, such
offset shall not be allowed against taxes imposed by any other Section
of this Chapter. Such offsets shall not be deemed in conflict with
or violation of subsection ___-400(b).
(Also see Sedona
city page)
(e) The tax imposed
by this Section shall not apply to sales of utility services to a
qualifying hospital, qualifying community health center or a qualifying
health care organization, except when sold for use in activities resulting
in gross income from unrelated business income as that term is defined
in 26 U.S.C. Section 512.
(f) The tax imposed
by this Section shall not apply to sales of natural gas or liquefied
petroleum gas used to propel a motor vehicle.
(g) The tax imposed
by this Section shall not apply to:
(1) revenues
received by a municipally owned utility in the form of fees charged
to persons constructing residential, commercial or industrial developments
or connecting residential, commercial or industrial developments
to a municipal utility system or systems if the fees are segregated
and used only for capital expansion, system enlargement or debt
service of the utility system or systems.
(2) revenues
received by any person or persons owning a utility system in the
form of reimbursement or contribution compensation for property
and equipment installed to provide utility access to, on or across
the land of an actual utility consumer if the property and equipment
become the property of the utility. This exclusion shall not exceed
the value of such property and equipment.
(h) The tax imposed
by this Section shall not apply to sales of alternative fuel as defined
in A.R.S. Section 1-215, to a used oil fuel burner who has received
a Department of Environmental Quality permit to burn used oil or used
oil fuel under A.R.S. Section 49-426 or Section 49-480.
