TO: Mayor Collins and Town Council Members
FROM: Kevin Burke, Town Manager
Duncan Miller, Town Clerk
DATE: September 8, 2016
DEPARTMENT: Town Manager
Staff Contact Duncan Miller, 480-348-3610
End
AGENDA TITLE:
Title
Approval of Modification to the Intergovernmental Agreement between the Arizona Department of Revenue and the Town of Paradise Valley for Transaction Privilege Tax Administration
Body
Council Goals or Statutory Requirements:
* A.R.S. ? 42-6001 - The department and each city or town shall enter into an intergovernmental agreement to provide a uniform method of administration, collection, audit and licensing of transaction privilege and affiliated excise taxes imposed by the state or cities or towns
* Ensure Town's Financial Health
RECOMMENDATION:
Recommendation
Authorize the Town Manager to execute the modification to the IGA with the Arizona Department of Revenue for Transaction Privilege Tax Administration Services.
Background
SUMMARY STATEMENT:
In 2015, the Town of Paradise Valley entered into an Intergovernmental Agreement with the Arizona Department of Revenue, as required by A.R.S. ? 42-6001, for administration of the Town's Transaction Privilege Tax. The IGA allowed for the parties to modify the agreement as necessary. Over the past year, several concerns were raised prompting the Department of Revenue to draft amendments to the IGA in consultation with the League of Arizona Cities and Towns and key local representatives.
There are a total of five modifications: two changes concern the automatic review and renewal provisions of the agreement; the third allows cities and towns to have greater input in drafting rulings and interpretations of the Model City Tax Code; the fourth provides a process to resolve taxpayer errors regarding the remittal taxes to the wrong jurisdiction; and the final amendment reaffirms that cities and towns are obligated to contribute to the operation of the Department of Revenue. A summar...
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