HomeMy WebLinkAboutOrd 1996-42 ORDINANCE 96-42
AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL,
TOWN OF FOUNTAIN HILLS, ARIZONA, RELATING TO THE
PRIVILEGE LICENSE TAX; AMENDING THE TOWN TAX CODE,
SECTION 8A-447 AND REGULATION 8A-447.1 AND IMPOSING A
TAX ON TRANSIENT LODGING; PROVIDING PENALTIES FOR
THE VIOLATION THEREOF; PROVIDING SEVERABILITY AND
DESIGNATING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE MAYOR AND COMMON COUNCIL OF THE TOWN OF
FOUNTAIN HILLS AS FOLLOWS:
Section 1. That section 8A-447 of the Tax Code of the Town of Fountain Hills is hereby
amended to read as follows:
Sec. 8A-447. RENTAL LEASING AND LICENSING FOR THE USE OF REAL
PROPERTY: ADDITIONAL TAX UPON RESIDENT TRANSIENT
LODGING.
IN ADDITION TO THE TAXES LEVIED AS PROVIDED IN SECTION 8A-444, THERE IS
HEREBY LEVIED AND SHALL BE COLLECTED AN ADDITIONAL TAX IN THE AMOUNT
EQUAL TO THREE PERCENT (3%) OF THE GROSS INCOME FROM THE BUSINESS
ACTIVITY OF ANY HOTEL LODGING AND/OR LODGING SPACE FURNISHED TO ANY
TRANSIENT. "TRANSIENT" MEANS ANY PERSON WHO, FOR ANY PERIOD OF NOT
MORE THAN THIRTY(30) CONSECUTIVE DAYS,EITHER AT HIS OWN EXPENSE OR AT
THE EXPENSE OF ANOTHER, OBTAINS LODGING OR THE USE OF ANY LODGING
SPACE IN ANY HOTEL FOR WHICH LODGING OR USE OF LODGING SPACE A CHARGE
IS MADE.
Section 2. Regulation 8A-446.1 of the Tax Code of the Town of Fountain Hills is amended to
read as follows:
Reg. 8A-447.1. GROSS INCOME FROM RENTAL, LEASING , AND LODGING
OR LODGING SPACE TO TRANSIENTS.
(a) IF THE CHARGE MADE BY A HOTEL TO A TRANSIENT INCLUDES ANY CHARGE
FOR SERVICES OR ACCOMMODATIONS IN ADDITION TO THAT OF LODGING
AND/OR THE USE OF LODGING SPACE, THEN SUCH PORTION OF THE TOTAL
CHARGE AS REPRESENTS ONLY THE CHARGE FOR THE USE OF THE ROOM
AND/OR LODGING SPACE SHALL BE DISTINCTLY SET OUT AND BILLED TO
SUCH TRANSIENT BY SUCH HOTEL AS A SEPARATE ITEM, OR THE ENTIRE
CHARGE SHALL BE DEEMED CHARGE FOR USE OF LODGING SPACE SUBJECT
TO THE TAX IMPOSED BY SECTION 8A-447.
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(b) A SEPARATELY ITEMIZED CHARGE FOR USE OF THE FURNISHINGS
CONTAINED IN LODGING OR LODGING SPACE RENTED,LEASED, OR LICENSED
TO A TRANSIENT SHALL BE DEEMED GROSS INCOME FROM THE BUSINESS OF
RENTING, LEASING, AND LICENSING LODGING TO A TRANSIENT.
FURTHERMORE, IN REGARD TO SUCH TANGIBLE PERSONAL PROPERTY, SUCH
PERSON IS DEEMED NOT IN THE BUSINESS OF RENTAL, LEASING, AND
LICENSING OF TANGIBLE PERSONAL PROPERTY FOR ALL PURPOSES OF THIS
CHAPTER.
(c) COMPLIMENTARY FOOD AND DRINK. PERSONS ENGAGED IN THE BUSINESS
OF RENTAL, LEASING, AND LICENSING OF LODGING TO TRANSIENTS SHALL
INCLUDE CHARGES FOR COMPLIMENTARY FOOD AND DRINK AS GROSS
INCOME FROM THE BUSINESS OF RENTAL, LEASING, AND LICENSING OF
LODGING TO TRANSIENTS, AND SHALL NOT BE DEEMED IN THE RESTAURANT
BUSINESS FOR ALL PURPOSES OF THIS CHAPTER, UNLESS SUCH CHARGES:
(1) ARE MADE ONLY AT THE REQUEST OF THE TRANSIENT, OR AS A
SEPARATE, OPTIONAL CHARGE FOR CONSUMING SPECIFIC FOOD OR
DRINK (FOR EXAMPLE, "ROOM SERVICE" CHARGES); AND
(2) ARE COMMENSURATE WITH CHARGES FOR LIKE QUANTITY AND TYPE
OF FOOD CONSUMED BY PATRONS OF PERSONS ENGAGED IN THE
RESTAURANT BUSINESS.
Section 3. Any person found guilty of violating any provision of these amendments to the Tax
Code shall be guilty of a class one misdemeanor. Each day that a violation continues
shall be a separate offense punishable as herein above described.
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 thereof.
Section 5. The provisions of this ordinance shall become effective on February 1, 1997.
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,,, PASSED AND ADOPTED by the Mayor and the Common Council of the Town of Fountain
Hills , Arizona, this 7th day of November, 1996.
M or Jerold L. Miles
ATTEST:
0.4444:01 ALt4A-)
Town Clerk, Cassie B. Hansen
//7(76(___
Tow Manager, Paul L. Nordin
Lir APPROVED AS TO FORM:
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Town Attorney, William q. Farrell
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