HomeMy WebLinkAboutOrd 2004-03 ORDINANCE NO. 04-03
AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, AMENDING THE TOWN OF FOUNTAIN
HILLS TAX CODE RELATING TO THE PRIVILEGE LICENSE TAX;
REMOVING THE EXEMPTION FROM TAXATION FOR RESIDENTIAL
RENTAL PROPERTY; PROVIDING PENALTIES FOR THE VIOLATION
THEREOF; PROVIDING FOR SEVERABILITY; DESIGNATING AN
EFFECTIVE DATE AND PROVIDING FOR APPLICATION OF TAX TO
CERTAIN CONTRACTS.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, as follows:
SECTION 1. That Section 8A-445, Rental, leasing, and licensing for use of real
property, of the Town of Fountain Hills Tax Code is hereby amended to read as follows:
Sec. 8A-445. Rental, leasing,and licensing for use of real property.
(a) The tax rate shall be at an amount equal to twe ONE and six-tenths percent(2.6%) (1.6%) of
the gross income from the business activity upon every person engaging or continuing in the
business of leasing or renting real property located within the Town for a consideration, to
the tenant in actual possession, or the licensing for use of the real property to the final
licensee located within the Town for a consideration including any improvements, rights, or
interest in such property; property provided further that:
(1) Payments made by the lessee to, or on behalf of, the lessor for the property taxes,
repairs, or improvements are considered to be part of the taxable gross income.
(2) Charges for such items as telecommunication, utilities, pet fees, or maintenance are
considered to be part of the taxable gross income.
(3) However, if the lessor engages in telecommunication activity, as evidence by installing
individual metering equipment and by billing each tenant based upon actual usage,
such activity is taxable under Section 8A-470.
(f) A person who ha ,
spaces rented, leased or licensed or available for rent, lease, or license within the State and
no units of commercial property fer gent, lease, or license within the State, is not deemed to
be in the rental business, an
renttal eases-or license-income-even though said person have f wer •han three (3)
lodging spaces. (RESERVED).
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(h) ,
licens. of lea r lea .,e to a.. .nd� idual „ho o ides th . (RESERVED).
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SECTION 2. That Regulation 8A-200.1, When deposits are includable in gross income,
of the Town of Fountain Hills Tax Code is hereby amended to read as follows:
Reg. 8A-200.1. When deposits are includable in gross income.
(b) (Reserved)NONREFUNDABLE DEPOSITS FOR CLEANING, KEYS, PET FEES,
MAINTENANCE, OR FOR ANY OTHER PURPOSE ARE DEEMED GROSS INCOME
UPON RECEIPT.
SECTION 3. That any person found guilty of violating any provision of this Ordinance
shall be guilty of a class one misdemeanor.
SECTION 4. That 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. That the provisions of this Ordinance and the increase in tax rate provided
herein shall become effective on April 1, 2004.
SECTION 6. That the additional tax imposed pursuant to this Ordinance shall not apply
to contracts entered into prior to the effective date of this Ordinance.
PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills,
Arizona, January 15, 2004
FOR THE TO 0 ,FOUNTAIN LLS: ATTESTED TO:
147
W. J. Nicho , ayor Bevelyn J. B der, own Clerk
REVIEWED BY: APP VIED, AS O FORM:
Tim G. Pickering,Town Manager Andrew J. McGuire, Town Attorney
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