Bill Text: AZ SB1351 | 2013 | Fifty-first Legislature 1st Regular | Engrossed
Bill Title: Destination management company; exemption; refund
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2013-03-28 - House Committee of the Whole action: Do Pass Amended [SB1351 Detail]
Download: Arizona-2013-SB1351-Engrossed.html
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House Engrossed Senate Bill |
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State of Arizona Senate Fifty-first Legislature First Regular Session 2013
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SENATE BILL 1351 |
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AN ACT
amending title 42, chapter 5, article 1, Arizona Revised Statutes, by adding section 42-5039; relating to transaction privilege tax and use tax.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 42, chapter 5, article 1, Arizona Revised Statutes, is amended by adding section 42-5039, to read:
42-5039. Qualified destination management companies; definitions
A. A qualified destination management company is not subject to transaction privilege tax under this chapter on the gross proceeds of sale or gross income derived from a qualified contract for destination management services.
B. A qualified destination management company is a final consumer and user of any tangible personal property, activity or service subject to transaction privilege tax under article 2 of this chapter that the qualified destination management company arranges pursuant to a qualified contract for destination management services.
C. For the purposes of this section:
1. "Destination management services" means the business of coordinating, designing and implementing the delivery by a third party of four or more of the following:
(a) Transportation.
(b) Entertainment.
(c) Food or beverage.
(d) Recreational or amusement activity.
(e) Tours.
(f) Event venue.
(g) Theme decor.
2. "Qualified contract" means a contract for the provision of destination management services by a qualified destination management company where both of the following apply:
(a) The qualified destination management company receives payment from or on behalf of the qualified destination management company's client for the cost of the destination management services arranged by the qualified destination management company.
(b) The qualified destination management company pays the vendor supplying the destination management services arranged by the qualified destination management company including any applicable transaction privilege tax or collection of use tax charged by the vendor to the qualified destination management company.
3. "Qualified destination management company" means a person that receives on an annual basis at least eighty per cent of its gross proceeds of sales or gross income derived from destination management services.
Sec. 2. Retroactivity; refund
A. Section 42-5039, Arizona Revised Statutes, as added by this act, applies retroactively to taxable periods beginning from and after December 31, 2001.
B. Any claim for refund of transaction privilege tax paid on gross proceeds of sales or gross income that was originally reported by a qualified destination management company on a return under title 42, chapter 5, article 2, Arizona Revised Statutes, that is based on the retroactive application of section 42-5039, Arizona Revised Statutes, as added by this act, must be submitted pursuant to section 42-1118, Arizona Revised Statutes, to the department of revenue on or before December 31, 2013. Failure to file a claim on or before December 31, 2013 constitutes a waiver of the claim for refund under this section.
C. The burden is on the qualified destination management company to establish by competent evidence the amount of tax paid for all taxable periods and the amount that it paid under title 42, chapter 5, article 2, Arizona Revised Statutes, on its qualified contracts for destination management services as defined by section 42-5039, Arizona Revised Statutes, as added by this act. The department of revenue shall:
1. Review all timely filed claims.
2. Determine, on audit if necessary, the correct amount of each claim.
3. Notify the taxpayer of its determination. The notice is final unless the taxpayer appeals in the manner provided in section 42-1119, Arizona Revised Statutes.
D. Notwithstanding section 42-1119, Arizona Revised Statutes, the department of revenue shall not make a refund until after the determination of the amount of all refund claims filed pursuant to this section. If a taxpayer appeals the department's determination, the department pursuant to the rules protecting confidentiality under title 42, chapter 2, article 1, Arizona Revised Statutes, may notify other taxpayers who have filed claims under this section as to the nature and extent of the delay.
E. The total amount of refunds issued under this section shall not be more than ten thousand dollars. If the total amount of refundable claims filed under this section is more than ten thousand dollars, the department shall reduce each claim proportionately so that the total amount of refunds is not more than ten thousand dollars.
F. Interest shall not be allowed or compounded on a refund paid before July 1, 2014. Unpaid refund amounts from and after June 30, 2014, shall accrue interest under section 42-1123, Arizona Revised Statutes.
