HomeMy WebLinkAboutOrd 2008-04 ORDINANCE NO.08-04
AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, RELATING TO THE PRIVILEGE LICENSE
TAX; PROVING FOR AUTOMATIC AMENDMENTS TO THE TOWN TAX
CODE TO DECREASE THE RATE OF TAXATION FROM TWO AND SIX
TENTHS PERCENT (2.6%) TO TWO AND ONE TENTHS PERCENT (2.1%)
UPON THE OCCURRENCE OF CERTAIN CONDITIONS; PROVIDING
PENALTIES FOR THE VIOLATION THEREOF; AND PROVIDING FOR
SEVERABILITY.
WHEREAS, on January 16, 2003, the Mayor and Council (the "Town Council") of the
Town of Fountain Hills (the "Town") adopted Ordinance 03-01, amending the Town Tax Code
by increasing the transaction privilege (sales) tax rate from 1.6% to 2.6%, provided that the tax
was to remain in full force and effect only until such time as the earlier to occur of(i) formation
of a fire district that provides fire and emergency medical services to the entire incorporated area
of the Town of Fountain Hills and the levy and collection of a secondary property tax by said
district to fund such fire and emergency medical services or (ii) approval of a primary property
tax by the qualified electors of the Town of Fountain Hills at the special election on May 20,
2003, and the levy and collection thereof; and
WHEREAS, the primary property tax was not authorized at the May 20, 2003, election,
therefore, the sales tax increase remains in place, subject only to possible termination upon
formation of a fire district; and
WHEREAS, the Town Council desires to provide a stable funding source for critical
public safety, fire and emergency medical services; and
WHEREAS, the Town Council recognizes that the Town's budget is currently overly
dependent upon state and local transaction privilege (sales) taxes as the primary funding source
for critical public safety, fire and emergency medical services; and
WHEREAS, in an effort to diversify and stabilize the Town's revenues, and to more
fairly allocate the cost of public safety, fire and emergency medical services among all Fountain
Hills residents, the Town Council identified a primary property tax as a possible source of
revenue to replace a portion of the transaction privilege tax; and
WHEREAS, on January 17, 2008, the Town Council adopted Resolution 2008-05,
submitting a $4.5 Million primary property tax question to the qualified electors of the Town for
consideration at a special election to be held on May 20, 2008; and
WHEREAS, if the primary property tax is authorized by the qualified electors, the Town
Council desires to reduce the Town's transaction privilege tax by an appropriate amount.
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NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF
THE TOWN OF FOUNTAIN HILLS as follows:
SECTION 1. That the tax rate in each of the following sections of the Town Tax Code
shall be set at two and one-tenth percent (2.1%) upon the date both of the following conditions
have been met: (i) approval of a primary property tax by the qualified electors at the May 20,
2008, special election and (ii) collection of such primary property taxes and distribution of such
revenues to the Town:
Section 8A-405 Advertising.
Section 8A-410 Amusements, exhibitions, and similar activities.
Section 8A-415 Construction contracting: construction contractors.
Section 8A-416 Construction contracting: speculative builders.
Section 8A-417 Construction contracting: owner-builders who are not speculative
builders.
Section 8A-425 Job printing.
Section 8A-427 Manufactured buildings.
Section 8A-430 Timbering and other extraction.
Section 8A-435 Publishing and periodicals distribution.
Section 8A-444 Hotels.
L, Section 8A-450 Rental, leasing, and licensing for use of tangible personal property.
Section 8A-455 Restaurants and Bars.
Section 8A-460 Retail sales: measure of tax; burden of proof; exclusions.
Section 8A-470 Telecommunications Services.
Section 8A-475 Transporting for hire.
Section 8A-480 Utility services.
Section 8A-610 Use tax: imposition of tax; presumption.
SECTION 2. That, if the conditions set forth in Section 1 above are satisfied
(specifically, a primary property tax is approved and the taxes are collected and distributed to the
Town), Ordinance 03-01 shall be immediately repealed without further act of the Town Council.
SECTION 3. That any person found guilty of violating any provision of the Town Tax
Code shall be guilty of a class one misdemeanor.
SECTION 4. 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.
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PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills,
Arizona, February 7, 2008.
FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO:
es„ 0cady\i(At. nvAivr 46(
W. J. ich s, Mayor Bevelyn J. Ben r, T n Clerk
REVIEWED BY: APPR VED AS TO FORM:
Kathleen M. Zanon, Interim Town Manager Andrew J. McGuire, Town Attorney
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