(a) The Tax Collector
shall issue private taxpayer rulings to taxpayers and potential taxpayers
on request. Each request shall be in writing and shall:
(1) state the
name, address and, if applicable, taxpayer identifying number of
the taxpayer or potential taxpayer who requests the ruling.
(2) describe
all facts that are relevant to the requested ruling.
(3) state whether,
to the best knowledge of the taxpayer or potential taxpayer, the
issue or related issues are being considered by the Tax Collector
or any other taxing jurisdiction in connection with an active audit,
protest or appeal that involves the taxpayer or potential taxpayer
and whether the same request has been or is being submitted to another
taxing jurisdiction for a ruling.
(4) be signed
by the taxpayer or potential taxpayer who makes the request or by
an authorized representative of the taxpayer or potential taxpayer.
(b) A private
taxpayer ruling may be revoked or modified by either:
(1) a change
or clarification in the law that was applicable at the time the
ruling was issued, including changes or clarifications caused by
regulations and court decisions.
(2) actual written
notice by the Tax Collector to the last known address of the taxpayer
or potential taxpayer of the revocation or modification of the private
taxpayer ruling.
(c) With respect
to the taxpayer or prospective taxpayer to whom a private taxpayer
ruling is issued, the revocation or modification of a private taxpayer
ruling shall not be applied retroactively to tax periods or tax years
before the effective date of the revocation or modification and the
Tax Collector shall not assess any penalty or tax attributable to
erroneous advice that is furnished to the taxpayer or potential taxpayer
in the private taxpayer ruling if:
(1) the taxpayer
reasonably relied on the private taxpayer ruling.
(2) the penalty
or tax did not result either from a failure by the taxpayer to provide
adequate or accurate information or from a change in the information.
(d) A private
taxpayer ruling may not be relied upon, cited nor introduced into
evidence in any proceeding by any taxpayer other than the taxpayer
who received the ruling.
(e) A taxpayer
may appeal the propriety of a retroactive application of a revoked
or modified private taxpayer ruling by filing a written petition with
the Tax Collector pursuant to Section __-570 within forty-five (45)
days after receiving written notice of the intent to retroactively
apply a revoked or modified private taxpayer ruling.
(f) A private
taxpayer ruling constitutes the Tax Collector's interpretation of
the Sections of this Chapter only as they apply to the taxpayer making,
and the particular facts contained in, the request.
(g) A private
taxpayer ruling which addresses a taxpayer's ongoing business activities
will apply only to transactions that occur or tax liabilities that
accrue from and after the date of the taxpayer's ruling request.
(h) The Tax Collector
shall attempt to issue private taxpayer rulings within forty-five
(45) days after receiving the written request and on receiving the
facts that are relevant to the ruling. If the ruling is expected to
be delayed beyond the forty-five (45) days, the Tax Collector shall
notify the requestor of the delay and the proposed date of issuance.
(i) Within
thirty (30) days after being issued, the Tax Collector shall maintain
the private taxpayer ruling as a public record and make it available
at a reasonable cost for public inspection and copying. The text
of private taxpayer rulings are open to public inspection subject
to the confidentiality requirements prescribed by Section ___-510.
(j) In this
Section, "private taxpayer ruling" means a written determination
by the Tax Collector issued pursuant to this Section that interprets
and applies one or more Sections contained in this Chapter and any
applicable regulations.
(k) A private
taxpayer ruling issued by the Arizona Department of Revenue pursuant
to A.R.S. Section 42-2101 may be relied upon by the taxpayer to whom
the ruling was issued and must be recognized and followed by any City
in which such taxpayer has obtained a privilege license if the City
has not issued a ruling addressing the facts described in the taxpayer's
ruling request and the statute at issue in the taxpayer's ruling request
is, in essence, worded and written the same as the applicable Section
hereunder.
