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HomeMy WebLinkAboutRes 2008-15RESOLUTION NO. 2008-15 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, DECLARING AS A PUBLIC RECORD THAT CERTAIN DOCUMENT FILED WITH THE TOWN CLERK AND ENTITLED THE "2008 AMENDMENTS TO THE TAX CODE OF THE TOWN OF FOUNTAIN HILLS." BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. That certain document entitled the "2008 Amendments to the Tax Code of the Town of Fountain Hills" of which three copies each are on file in the office of the Town Clerk and open for public inspection during normal business hours, is hereby declared to be public record, and said copies are ordered to remain on file with the Town Clerk. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, Arizona, April 3, 2008. FOR THE TOWN JDF FOUNTAIN ® v I W. J. C L-bi Kathle n M. Zanon, Interim Town Manager 848393.1 ATTESTED TO: :- / a: APPROVED AS TO FORM: 0, OL',— Andrew J. McGuire, Town Attorney OUTLINE OF PROPOSED CONFORMING CHANGES TO MODEL CITY TAX CODE The attached Model City Tax Code changes, summarized below, were approved by the Municipal Tax Code Commission in February. Out -of -State Sales • Section 100, definition changed for "Out -of -State Sale" — Change eliminates subsection (2), which required the sale must be to a non - resident to qualify. Concerns were expressed that this requirement may potentially violate constitutional protections of interstate commerce. • Section 100, eliminate Model Option #1 within definition of "Out -of -State Sale" — Model Option #1 allowed exemption of Out -of -State Sales without regard for where the order was placed. Viewed in conjunction with the preceding item, this option effectively broadened the exemption far beyond the original intent. All cities and towns that had selected Model Option #1 have agreed with this change. Solar Energy Devices • Section 100, definitions added for "Solar Daylighting" and "Solar Energy Device" — Additions related to the following conforming change allowing a new deduction for the sale and installation of a Solar Energy Device. Language is identical to A.R.S. 42- 5001(14) & (15). • Section 415, 416, 417: Conforming deduction for Solar Energy Devices — Subsections are added to create a new deduction for the provision and installation of a Solar Energy Device under the Contracting categories. Language is identical to that found in A.R.S. 42- 5075(B)(14), including the sunset date of January 1, 2011. • Section 465, Conforming exemption for Solar Energy Devices — Subsection is added to include a conforming exemption for sales of Solar Energy Devices. Language is identical to A.R.S. 42- 5061(N). Architectural and engineering Fees • Section 415, 416, 417: Conforming exclusion of gross income from Architectural and Engineering fees — Subsections are added to create a new conforming exclusion of gross income related to the "direct costs" of architectural and engineering services included in a construction contract. Language is identical to that found in A.R.S. 42- 5075(J). Effective Date • All proposed changes are effective from and after July 1, 2008.