TO: Mayor Collins and Town Council Members
FROM: Kevin Burke, Town Manager
DATE: March 10, 2016
DEPARTMENT: Town Manager
Staff Contact
Duncan Miller, 480-348-3610
End
AGENDA TITLE:
Title
Adoption of Ordinance Number 16-01 Approving the 2012-2014 Tax Code Amendments and Resolution Number 16-03 Declaring the Tax Code Amendments a Public Record
Body
Council Goals
• Preserve Financial Stability
RECOMMENDATION:
Recommendation
Adopt Ordinance Number 16-01 and Resolution Number 16-03.
Background
SUMMARY STATEMENT:
The Town of Paradise Valley formally adopted the Model City Tax Code (MCTC) in 1987. The MCTC’s goal is to provide a greater degree of uniformity among cities and towns while at the same time preserving local options for determining exemptions and setting tax rates. Periodically, the Model City Tax Code Commission comprised of local officials appointed by the Legislature, and the Unified Audit Committee meet to review changes in state law as well as recommendations submitted by the business community and municipalities. The results of those meetings are the MCTC amendments which all cities and towns must adopt pursuant to A.R.S § 42-6053(B) so that all a uniform municipal tax code can be maintained state-wide.
The 2012-2014 amendments reflect recent changes in state law and the simplification of licensing and reporting for businesses. There are 18 amendments that can be consolidated into 3 categories: incorporation of statutory language for multiple definitions and exemptions, repeal and replacement of MCTC Article III - Licensing and Recordkeeping, and uniformity of taxable categories. The only policy question for Council consideration is whether to set a tax rate on a new category for wastewater utility service. Attached is a complete summary of the amendments as well as the complete text amendments.
The Town Council reviewed the amendments in a Study Session on February 25, 2016.
Council’s direction was to set the rate on wastewater utility service at 0% and to schedule the amendments for a public hearing. Notice of the hearing was printed in the Arizona Republic on February 20, 2016 and posted on the Town’s website. No comments were received in support of, or opposition to, the amendments.
BUDGETARY IMPACT:
There will be a minor negative fiscal impact on the Town related to a new exemption for leases between affiliated entities.
ATTACHMENT(S):
Summary of Changes
Ordinance 16-01
Resolution 16-03 - Text Amendments