Bill Text: AZ SB1382 | 2018 | Fifty-third Legislature 2nd Regular | Chaptered
Bill Title: TPT; online lodging marketplace; registration
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-04-11 - Chapter 189 [SB1382 Detail]
Download: Arizona-2018-SB1382-Chaptered.html
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House Engrossed Senate Bill |
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State of Arizona Senate Fifty-third Legislature Second Regular Session 2018
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CHAPTER 189
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SENATE BILL 1382 |
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AN ACT
Amending sections 42-5005 and 42-5076, Arizona Revised Statutes; amending section 48‑4204, Arizona Revised Statutes, as amended by house bill 2456, section 4, fifty-third legislature, second regular session; relating to transaction privilege tax licenses.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-5005, Arizona Revised Statutes, is amended to read:
42-5005. Transaction privilege tax and municipal privilege tax licenses; fees; renewal; revocation; violation; classification
A. Every person who receives gross proceeds of sales or gross income on which a transaction privilege tax is imposed by this article and who desires to engage or continue in business shall apply to the department for an annual transaction privilege tax license accompanied by a fee of twelve dollars. A person shall not engage or continue in business until the person has obtained a transaction privilege tax license.
B. A person desiring to engage or continue in business within a city or town that imposes a municipal privilege tax shall apply to the department of revenue for an annual municipal privilege tax license accompanied by a fee of up to fifty dollars, as established by ordinance of the city or town. The person shall submit the fee with each new license application. The person may not engage or continue in business until the person has obtained a municipal privilege tax license. The department must collect, hold, pay and manage the fees in trust for the city or town and may not use the monies for any other purposes.
C. A transaction privilege tax license is valid only for the calendar year in which it is issued, but it may be renewed for the following calendar year. There is no fee for the renewal of the transaction privilege tax license. The transaction privilege tax license must be renewed at the same time and in the manner as the municipal privilege tax license renewal.
D. A municipal privilege tax license is valid only for the calendar year in which it is issued, but it may be renewed for the following calendar year by the payment of a license renewal fee of up to fifty dollars. The renewal fee is due and payable on January 1 and is considered delinquent if not received on or before the last business day of January. The department must collect, hold, pay and manage the fees in trust for the city or town and may not use the monies for any other purposes.
E. A licensee that remains in business after the municipal privilege tax license has expired is subject to the payment of the license renewal fee and the civil penalty prescribed in section 42‑1125, subsection R.
F. If the applicant is not in arrears in payment of any tax imposed by this article, the department shall issue a license authorizing the applicant to engage and continue in business on the condition that the applicant complies with this article. The license number shall be continuous.
G. The transaction privilege tax license and the municipal privilege tax license are not transferable on a complete change of ownership or change of location of the business. For the purposes of this subsection:
1. "Location" means the business address appearing in the application for the license and on the transaction privilege tax or municipal privilege tax license.
2. "Ownership" means any right, title or interest in the business.
3. "Transferable" means the ability to convey or change the right or privilege to engage or continue in business by virtue of the issuance of the transaction privilege tax or municipal privilege tax license.
H. When the ownership or location of a business on which a transaction privilege tax or municipal privilege tax is imposed has been changed within the meaning of subsection G of this section, the licensee shall surrender the license to the department. The license shall be reissued to the new owners or for the new location on application by the taxpayer and payment of the twelve‑dollar fee for a transaction privilege tax license and a fee of up to fifty dollars per jurisdiction for a municipal privilege tax license. The department must collect, hold, pay and manage the fees in trust for the city or town and may not use the monies for any other purposes.
I. A person who is engaged in or conducting a business in two or more locations or under two or more business names shall procure a transaction privilege tax license for each location or business name regardless of whether all locations or business names are reported on a consolidated return under a single transaction privilege tax license number. This requirement shall not be construed as conflicting with section 42‑5020.
J. A person who is engaged in or conducting a business in two or more locations or under two or more business names shall procure a municipal privilege tax license for each location or business name regardless of whether all locations or business names are reported on a consolidated return.
K. A person who is engaged in or conducting business at two or more locations or under two or more business names and who files a consolidated return under a single transaction privilege tax license number as provided by section 42‑5020 is required to pay only a single municipal privilege tax license renewal fee for each local jurisdiction pursuant to subsection D of this section. A person who is engaged in or conducting business at two or more locations or under two or more business names and who does not file a consolidated return under a single license number is required to pay a license renewal fee for each location or license in a local jurisdiction.
L. For the purposes of this chapter and chapter 6 of this title: ,
1. Through December 31, 2018, an online lodging marketplace, as defined in section 42‑5076, may register with the department for a license for the payment of taxes levied by this state and one or more counties, cities, towns or special taxing districts, at the election of the online lodging marketplace, for taxes due from an online lodging operator on any online lodging transaction facilitated by the online lodging marketplace, subject to sections 42‑5076 and 42‑6009.
2. Beginning from and after December 31, 2018, an online lodging marketplace, as defined in section 42-5076, shall register with the department for a license for the payment of taxes levied by this state and one or more counties, cities, towns or special taxing districts for taxes due from an online lodging operator on any online lodging transaction facilitated by the online lodging marketplace, subject to sections 42-5076 and 42-6009.
M. For the purposes of this chapter and chapter 6 of this title, a person who is licensed pursuant to title 32, chapter 20 and who files an electronic consolidated tax return for individual real properties under management on behalf of the property owners may be licensed with the department for the payment of taxes levied by this state and by any county, city or town with respect to those properties.
N. If a person violates this article or any rule adopted under this article, the department upon hearing may revoke any transaction privilege tax or municipal privilege tax license issued to the person. The department shall provide ten days' written notice of the hearing, stating the time and place and requiring the person to appear and show cause why the license or licenses should not be revoked. The department shall provide written notice to the person of the revocation of the license. The notices may be served personally or by mail pursuant to section 42‑5037. After revocation, the department shall not issue a new license to the person unless the person presents evidence satisfactory to the department that the person will comply with this article and with the rules adopted under this article. The department may prescribe the terms under which a revoked license may be reissued.
O. The department may revoke any transaction privilege tax or municipal privilege tax license issued to any person who fails for thirteen consecutive months to make and file a return required by this article on or before the due date or the due date as extended by the department unless the failure is due to a reasonable cause and not due to wilful neglect.
P. A person who violates any provision of this section is guilty of a class 3 misdemeanor.
Sec. 2. Section 42-5076, Arizona Revised Statutes, is amended to read:
42-5076. Online lodging marketplace classification; definitions
A. The online lodging marketplace classification is comprised of the business of operating an online lodging marketplace.
B. The tax base for the online lodging marketplace classification is the gross proceeds of sales or gross income derived from the business measured by the total amount charged for an online transient lodging transaction by the online lodging operator.
C. Through December 31, 2018, the online lodging marketplace classification does not include any online lodging marketplace that has not entered into an agreement with the department to register for, or has not otherwise obtained from the department, a license to collect tax pursuant to section 42‑5005, subsection L.
D. The tax base for the online lodging marketplace classification does not include the gross proceeds of sales or gross income derived from charges to an occupant who is a transient as defined in section 42-5070 for the occupancy of any lodging accommodation in this state that is classified for property tax purposes under section 42-12001.
D. E. For the purposes of this section:
1. "Online lodging marketplace" means a person that provides a digital platform for compensation through which an unaffiliated third party offers to rent lodging accommodations in this state to an occupant, including a transient, as defined in section 42‑5070, and the accommodations are not classified for property tax purposes under section 42‑12001. For the purposes of this paragraph:
(a) "Lodging accommodations" means any space offered to the public for lodging, including any hotel, motel, inn, tourist home or house, dude ranch, resort, campground, studio or bachelor hotel, lodging house, rooming house, residential home, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location in this state or other similar structure or space.
(b) "Unaffiliated third party" means a person that is not owned or controlled, directly or indirectly, by the same interests.
2. "Online lodging operator" means a person that is engaged in the business of renting to an occupant, including a transient as defined in section 42‑5070, any lodging accommodation in this state offered through an online lodging marketplace.
3. "Online lodging transaction" means a charge to an occupant, including a transient as defined in section 42‑5070, by an online lodging operator for the occupancy of any lodging accommodation in this state and includes an online transient lodging transaction.
4. "Online transient lodging transaction" means a charge to an occupant who is a transient as defined in section 42‑5070 by an online lodging operator for the occupancy of any lodging accommodation in this state.
Sec. 3. Section 48-4204, Arizona Revised Statutes, as amended by House Bill 2456, section 4, fifty-third legislature, second regular session, as transmitted to the governor, is amended to read:
48-4204. Constructing and operating a stadium and other structures; regulating alcoholic beverages
A. From the taxes and surcharges levied pursuant to article 2 of this chapter for use with respect to major league baseball spring training, the district may acquire land and construct, finance, furnish, maintain, improve, operate, market and promote the use of existing or proposed major league baseball spring training facilities or stadiums and other structures, utilities, roads, parking areas or buildings necessary for full use of the training facilities or stadiums for sports and other purposes and do all things necessary or convenient to accomplish those purposes. The board shall require that any project undertaken by the district include financial participation from the county or municipality in which the project is located, from a private party or from any combination of these entities that equals or exceeds one-half of the amount to be expended or distributed by the district. Capital improvement funds expended by a county, municipality or private party for a purpose authorized by this section may be deemed financial participation with respect to any project the district may undertake.
B. From the taxes and charges levied or identified pursuant to section 48‑4237 for use with respect to multipurpose facilities and from other monies lawfully available to the district, the district may acquire land and construct, finance, furnish, maintain, improve, operate, market and promote the use of multipurpose facilities and other structures, utilities, roads, parking areas or buildings necessary for full use of the multipurpose facilities and do all things necessary or convenient to accomplish those purposes. Public monies identified in section 48‑4237, including monies distributed pursuant to section 42‑5031, may only be used for the components for a multipurpose facility that are owned by the district or that are publicly owned or for the following purposes:
1. Debt service for bonds issued by the district before January 1, 2025 2009.
2. Contractual obligations incurred by the district before June 1, 2025 2009.
3. Fiduciary, reasonable legal and administrative expenses of the district.
4. The design and construction of the hotel and convention center located on the multipurpose facility site.
C. For the public monies identified in section 48‑4237, including monies distributed pursuant to section 42‑5031, and from which the district board has planned an expenditure of five hundred thousand dollars or more, the following apply:
1. Each district board member shall provide advance notice of the consideration of the expenditure by the board to the person who holds the office that is responsible for that board member's appointment.
2. The notice prescribed in paragraph 1 of this subsection must be provided by regular mail delivered to the office that is responsible for that board member's appointment and may be preceded by any other form of notice. The notice must be provided at least two weeks before the date of the meeting and must be posted to the district's website on the day the notice is mailed.
3. The notice prescribed in paragraph 1 of this subsection must be accompanied by the board member's written statement as to whether the board member has any financial interest in the subject of the proposed expenditure by the board. The board members' written statements may be provided in a single document that is prepared by the board's administrative personnel but must be signed by the board members and must be posted to the district's website with the notice prescribed in paragraph 1 of this subsection.
4. The district board may not artificially divide or fragment planned expenditures so as to circumvent the requirements of this subsection.
D. A district established pursuant to section 48‑4202, subsection B may not use monies distributed pursuant to section 42‑5031 for the salaries or compensation of any employee of the municipality in which the district is located.
E. Pursuant to an intergovernmental agreement with the Arizona board of regents, from the revenues collected from assessments pursuant to section 48‑4235 for use with respect to Arizona board of regents owned intercollegiate athletic facilities, the district may construct, reconstruct, finance, furnish, maintain and improve existing intercollegiate athletic facilities located on Arizona board of regents' property, including utilities, roads, parking areas or buildings necessary for full use of the athletic facilities.
F. Title 34 applies to the district, except that regardless of the funding source for design and construction of facilities and structures the district may establish alternative systems and procedures, including the use of the design-build method of construction or the use of qualifications-based selection of contractors with experience in stadium design or construction, to expedite the design and construction or reconstruction of any of its facilities or structures or any facilities or structures leased to it or used by it pursuant to an intergovernmental agreement. For the purposes of this subsection:
1. "Design-build" means a process of entering into and managing a contract between the district and another party in which the other party agrees to both design and build a structure, a facility or other items specified in the contract.
2. "Qualifications-based selection" means a process of entering into and managing a contract between the district and another party in which the other party is selected by the district on the basis of the party's qualifications and experience in designing or constructing facilities, structures or other items similar to those the district is authorized to construct or lease. The other party may be selected by direct selection or by public competition.
G. For the purposes of financing, designing, constructing, reconstructing or operating facilities or structures, the district is not the agent of any municipality, this state or any agency or instrumentality of this state participating in the funding of such facilities or structures.
H. Subject to the requirements of title 4, the board of directors may permit and regulate the sale, use and consumption of alcoholic beverages at events held on property acquired, leased or subleased under this article.
Sec. 4. Conditional enactment
Section 48-4204, Arizona Revised Statutes, as amended by this act, does not become effective unless House Bill 2456, fifty-third legislature, second regular session, relating to county stadium districts, becomes law.
APPROVED BY THE GOVERNOR APRIL 11, 2018.
FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 11, 2018.
