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Arizona Sales Tax

Arizona Sales Tax. Most important revenue source Limited property tax Limited flexibility with Revenue Sharing. Model City Tax Code. Cities & Towns impose sales taxes ~ 1960 1987: MCTC created to provide uniformity Improve ease of compliance for businesses

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Arizona Sales Tax

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  1. Arizona Sales Tax • Most important revenue source • Limited property tax • Limited flexibility with Revenue Sharing

  2. Model City Tax Code • Cities & Towns impose sales taxes ~ 1960 • 1987: MCTC created to provide uniformity • Improve ease of compliance for businesses • All Cities and Towns use the MCTC • DOR Program – Program vs. Non-Program • Appendices • Local & Model Options • Green Pages

  3. Differences from the State • Base Differences • Advertising • Speculative Builder / Owner Builder • Residential Rental • Commercial Lease • Real Property & TPP Licensing for Use • Food for Home Consumption

  4. Differences from the State • Definitional Differences • City-based Nexus • Jet Fuel • Manufactured Buildings • Hotel Tax • Broker Category • Etc., Etc.

  5. Ongoing MCTC Clean-up Efforts • Green Page Elimination • Many small items have already been removed by City and Town Councils • Broader Issue of Licensing • Common Item Conversions • Option Reduction Efforts • Eliminate the Rarely Used • Reduce Multiple Variations • Renumber and Reorganize

  6. TPT Simplification Task Force • Set up by Executive Order • Simplify the tax code to make compliance by business easier • Reps from business and government • Makes recommendations to the Legislature in December

  7. TPT Simplification Task Force • 3 Work Groups • Base Differences • Definitional Differences • State & Local Standardization • Contracting • Online Retail • Federal Bills • Single Administration (Remittance) • Single Audit (MJAC)

  8. Online Portal Project • HB2466 • Requires the 18 Non-Program Cities to create an Online Portal, providing a single point to file and pay all Non-Program City Taxes • Optimal solution will also allow Licensing for all Non-Program Cities • League, UAC, DOA, DOR working together • Contract Awarded by October 1, 2013 • Operational by January 1, 2015

  9. Online Portal Project • Concept: Taxpayer’s Perspective • Taxpayer will log in once, select the cities and towns to file a return • Taxpayer feels like they are filing one return; authorizing one ACH payment • Automatic upload is possible in place of manual data entry

  10. Online Portal Project • Concept: City Perspective • Vendor breaks the data out by city, sending each their separate return/payment data • Vendor will create import/export files that work with each city’s existing system • Each city processes its own ACH transaction: vendor never handles any money

  11. Online Portal Project • General • A move toward compliance with single administration/remittance for Online Retail • Does not replace or eliminate existing filing methods – Adds a new venue to report • Does not equal a step toward State preemption of Non-Program cities

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