Approved Resolution, Changes to the Model City Tax Code: "2014-2018 Legislative Actions Amendment"
Article IV - Privilege Taxes
Sec. ___-422. (Reserved)
++(Local Option #LL:
Sec. ___-422. Jet fuel sales.
(a) The tax rate shall be at an amount of _______ cents per gallon sold from the business activity upon every person engaging or continuing in the business of selling jet fuel.
(1) Gallons sold includes all gallons sold, bartered, exchanged, included as part or whole of a trade-out, or similar transactions regardless of the type or form of payment.
(2) For purposes of this Section the following terms are substitutable in Articles III and V of this chapter, and corresponding regulations:
(A) "gallons" for "gross income"
(B) "gallon(s)" for "amount(s)".
(b) The burden of proving that a sale of jet fuel is not a taxable sale shall be upon the person who made the sale.
(c) When this city and another Arizona city or town with an equivalent excise tax could claim nexus for taxing a jet fuel sale, the city or town where the permanent business location of the seller at which the order was received shall be deemed to have precedence, and for the purposes of this chapter such city or town has sole and exclusive right to such tax.
(d) The appropriate tax liability for any jet fuel sale where the order is received at a permanent business location of the seller located in this city or in an Arizona city or town that levies an equivalent excise tax shall be at the rate of the city or town of such seller's location.
(e) THE APPLICATION OF THE TAX IS LIMITED TO AMOUNTS OF NOT MORE THAN TEN MILLION GALLONS OF JET FUEL PURCHASED BY EACH PURCHASER IN EACH CALENDAR YEAR. PURCHASES IN EXCESS OF TEN MILLION GALLONS PER PURCHASER PER YEAR ARE EXEMPT.
(f) BEGINNING FROM AND AFTER NOVEMBER 30, 2017, THE REVENUES GENERATED BY EACH PUBLIC AIRPORT MUST BE SEGREGATED IN SEPARATE ACCOUNTS FOR THE EXCLUSIVE EXPENDITURE FOR THE CAPITAL OR OPERATING COSTS OF THE AIRPORT, THE AIRPORT SYSTEM OR OTHER LOCAL AIRPORT FACILITIES OWNED OR OPERATED BY THE MUNICIPALITY AND DIRECTLY AND SUBSTANTIALLY RELATED TO THE AIR TRANSPORTATION OF PASSENGERS OR PROPERTY.
(g) Exemptions. Notwithstanding Section ___-400(d), the exemptions in Section ___-465(a), (b) and (d) through (z) will apply to sales of jet fuel taxed under this Section.)++