TO: Mayor Collins and Town Council Members
FROM: Kevin Burke, Town Manager
Duncan Miller, Town Clerk
DATE: February 25, 2016
DEPARTMENT: Town Manager
Staff Contact
Duncan Miller, 480-348-3610
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AGENDA TITLE:
Title
Discussion of 2012-2014 Tax Code Amendments
Body
Council Goals
* Preserve Financial Stability
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 simplify 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. Attached is a complete summary of the amendments as well as the complete text amendments.
In summary, the Town Council has no discretion over adopting the text amendments. The one policy consideration for the Council relates to imposing a tax on a new MCTC category for sewer utility service, however, staff's recommendation is to maintain the rate at 0%. All other amendments and exemptions will have a de minimis impact on the Town.
ATTACHMENT(S):
Summary of Changes
Ordinance 16-01
Resolution 16-03...
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