HomeMy WebLinkAboutRes 2016-18RESOLUTION 2016-18
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, APPROVING THE MODIFICATION TO THE
INTERGOVERNMENTAL AGREEMENT WITH ARIZONA DEPARTMENT OF
REVENUE RELATING TO THE ADMINISTRATION OF TRANSACTION
PRIVILEGE TAX.
BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS as follows:
SECTION 1. The Modification
Arizona Department of Revenue relating to the
audit and licensing of transaction privilege an,
hereby approved in substantially the form anc
incorporated herein by reference.
to the Intergovernmental Agreement with
uniform method of administration, collection,
affiliated excise taxes (the "Agreement") is
substance attached hereto as Exhibit A and
SECTION 2. The Mayor, the Town Manager, the Town Clerk and the Town Attorney
are hereby authorized and directed to cause the execution of the Agreement and to take all steps
necessary to carry out the purpose and intent of this Resolution.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills,
Arizona, August 18, 2016.
FOR THE TOWN OF FOUNTAIN HILLS:
"1�4ff ea--,�A
Linda M. Kava Iagh, Ma A r
REVIEWED BY:
r
Grady E. Mill , Tow Manager
2748668.1
ATTESTED TO:
Bevelyn J. Be er, 6wn Clerk
J. McGuire, Town Attorney
EXHIBIT A
TO
RESOLUTION 2016-18
[Agreement]
See following pages.
2748668.1
17f Vi, t L`: Vi ' V, K , rfEWT
BETWEEN
THE STATE OF D CITYITOWN
WHEREAS, The Arizona Department of Revenue, hereinafter referred to as Department
of Revenue and City/Town of Fountain Hills, hereinafter referred to as City/Town, have entered
into an Intergovermuental Agreement regarding the administration of taxes imposed by the State
or City/Town dated hereinafter referred to as the IGA, and
WHEREAS, the Department of Revenue and the City/Town intend to continue with the
IGA for an additional one year term in order to determine whether the general terms of the IGA
meet the parties' needs, with the exception of the modifications set forth below.
The parties agree to modify the TGA as follows effective July 1, 2016:
1. Add the following new subsection to Section 9, Collection of Municipal Taxes:
9.6 Adjustments to Reported Taxes: If the Department of Revenue determines that
a payment remitted by a taxpayer incorrectly identifies the city or town to which
the payment should be made, the Department of Revenue may temporarily hold
the payment until the distribution of the payment is corrected so that the
appropriate city or town receives the payment.
2. Add the following new subsection to Section 9, Collection of Municipal Taxes:
9.7 Taxpayer Rulings and Uniformity: Recognizing taxpayer written requests for
interpretation of the statutes and/or the Model City Tax Code, as well as guidance
regarding uniform application and interpretation of the statutes and the Model
City Tax Code impact all taxing jurisdictions, and further- recognizing
responsibility for such rulings and interpretation of the Model City Tax Code had
previously been the sole domain of the municipalities, the Department shall
include at least two representatives of the municipalities as regular members of
any group established to respond to such taxpayer ruling requests and to issue
such uniform interpretations and guidance promulgated by the Department.
Participation by the two representatives of the municipalities on any such group is
limited to instances when there is an issue raised that solely involves the Model
City Tax Code and/or presents anissue of first impression, including requests for -
private taxpayer rulings. The municipal representatives may also be consulted by
the Department on information letters, 'or when issuing statements of general
guidance. Written requests involving conu-non questions or issues that have
previously been addressed, whether unique to the Model City Tax Code or not,
may be handled in the regular course of Department processes without consulting
the representatives of the municipalities.
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3. Amend Section 10, Financing Collection of Taxes as follows:
10. Financing Collection of Taxes.
The costs incurred by the Department in administering this Agreement shall be financed
through the State general fund appropriation to the Department. This provision does not
relieve City/Town of any financial obligation unposed by statute.
4. Amend subsection 28.1 of Section 28, Duration, relating to automatic renewal of the
agreement as follows:
28.1. The term of this Agreement shall be from July 1 through June 30 of each year.
This Agreement shall automatically be renewed for successive one year terms
thereafter unless either party shall terminate this Agreement by notice, in writing,
no later than sixty calendar days prior to the expiration of the term then in effect.
Any agreed upon modifications to the terms and conditions of this agreement
shall be incorporated to be effective during the term identified by the review
committee provided for in section 28.5.
5. Amend subsection 28.5 of Section 28, Duration, relating to annual review of the
agreement as follows:
28.5 During the term of this Agreement, the terms and conditions of this Agreement
will undergo an annual review to be initiated no later than June I' of each year.
The review will be performed by a committee made up of equal parts
representatives of the Department and representatives of the municipal taxing
jurisdictions entering into an IGA with the Department for the administration and
collection of Municipal Taxes,
Signature Authority.
By signing below, the signer certifies that he or she has the authority to enter into this
Agreement and has read the foregoing and agrees to accept the provisions herein. This
modification may be executed in counterparts.
2730543.1
Signature) p // Date
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Signature Date
Typed Name and Title
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Typed Name an Tiitle j
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Enii Name
Entity Name
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RESERVED FOR THE ATTORNEY GENERAL.
RESERVED FOR CITYITOWN ATTORNEY
Attorney General no. ,
which is an agreement between public ageneies, has
APPROV - TO FORM AND AUTHORITY:
been reviewed pursuant to A.R.S. § 11-932 by the
undersigned Assistant Attorney General who has
BY; �n
k
determined that it is in proper form and is within the
C iT TTORNEY
powers and authority granted under the laws of the
State of Arizona to the Arizona Department of
Date: e
Revenue represented by the Attorney General.
MARK 8 vii
The Att ey Ge ral
Signatwc
Assistant Attorney General
Date:
2736543.1