HomeMy WebLinkAboutOrd 2005-03 ORDINANCE NO. 05-03
AN ORDINANCE OF THE TOWN OF FOUNTAIN HILLS, ARIZONA,
AMENDING THE TOWN TAX CODE TO INCORPORATE A TECHNICAL
CORRECTION RELATING TO NONRESIDENTIAL RENTAL BUSINESS
ACTIVITY.
WHEREAS, the Mayor and Council of the Town of Fountain Hills (the "Town
Council") adopted Ordinance No. 04-03 on January 15, 2004, amending section 8A-445 of the
Fountain Hills Tax Code eliminating the tax exemption for residential rental activity; and
WHEREAS, the Town Council determined that the appropriate tax rate was 1.6% for
residential rentals, but did not address the existing nonresidential business activity rate of 2.6%;
and
WHEREAS, two tax rates have been included in the Arizona Department of Revenue
monthly forms to taxpayers and Fountain Hills taxpayers were properly advised of the tax
change; and
WHEREAS, a technical correction to the Fountain Hills Tax Code is needed to codify
the different tax rates for commercial and residential rentals; and
WHEREAS, The Municipal Tax Code Commission approved the technical correction
to the Fountain Hills Tax Code on February 18, 2005.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF
THE TOWN OF FOUNTAIN HILLS, ARIZONA, as follows:
SECTION 1. That the Fountain Hills Tax Code, Article 4, Determination of Gross
Income, Section 8A-446, Additional Tax on Nonresidential Rental Business Activity, is hereby
amended to incorporate a technical correction to read as follows:
Section 8A-446. (Reserved) ADDITIONAL TAX ON NONRESIDENTIAL
RENTAL BUSINESS ACTIVITY.
IN ADDITION TO THE TAXES LEVIED UNDER SECTION 8A-445, THERE IS
HEREBY LEVIED AND SHALL BE COLLECTED BY THE TAX COLLECTOR AN
ADDITIONAL TAX IN THE AMOUNT EQUAL TO ONE PERCENT (1%) OF THE
GROSS INCOME FROM THE BUSINESS ACTIVITY OF ANY PERSON ENGAGED
IN THE RENTAL, LEASING OR LICENSING OF NONRESIDENTIAL PROPERTY
OR PROPERTY UNITS.
SECTION 2. Any person found guilty of violating any provision of this Ordinance shall
be guilty of a class 1 misdemeanor.
9196.001\..\05-03 Tax Code8A-446.v2.ord.doc
4.1.2005-1
SECTION 3. If any section, subsection, sentence, clause, phrase or portion of this
Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of
competent jurisdiction, such decision shall not affect the validity of the remaining portions of
this Ordinance.
SECTION 4. The provisions of this Ordinance shall be effective beginning April 1,
2004.
PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills,
Arizona, April 7, 200
FOR THE WN F FOUNTAIN ILLS: ATTESTED TO:
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W. . Nich s, ayor Bevelyn J. Be er, own Clerk
REVIEW)D APP VED AS TO FORM:
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L., Ti othy G. Pickering,Town M nager Andr J. McGuire,Town Attorney
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9196.001\..\05-03 Tax Code8A-446.v2.ord.doc
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