Model City Tax Code

go back

Private Taxpayer Ruling Form
Unified Audit Committee (UAC)
Interpretation and Ruling Subcommittee
Submit Ruling Requests to:
Unified Audit committee
c/o The League of Arizona Cities and Towns
1820 W. Washington Street
Phoenix, Az 85007
Fax: (602) 253-3874

Name of Taxpayer or Potential Taxpayer

Address of Taxpayer or Potential Taxpayer

Taxpayer Account Number

To my best knowledge, the issue(s) indicated below are not being considered by another taxing jurisdiction in connection with an active audit, protest or appeal that involves the Taxpayer or Potential Taxpayer listed above. The request has not been submitted to another taxing jurisdiction for a ruling.

If other taxing jurisdictions are involved with the issue(s) below, list the taxing jurisdiction(s) and the nature of their involvement below:

_________________________________________________________________________________________

________________________________________
Taxpayer or Potential Taxpayer Signature
or authorized representative of Taxpayer

______________________________________
Date

I. Describe the issue(s) in detail giving specific examples where applicable:

_________________________________________________________________________________________

II. Describe why you believe the issue is, or is not, subject to tax:

_________________________________________________________________________________________

III. Cite any existing State Rulings, Court Cases, UAC Interpretations or Model Cities Code Sections that you believe address the issue:

_________________________________________________________________________________________

A UAC Ruling is a public written statement of the Committee’s position interpreting the Model Cities Tax Code and applying the code to a specific set of facts or a particular tax situation. Taxpayers may rely on the rulings issued by the UAC unless the ruling has been revoked or modified by a change or clarification in the law that was applicable at the time the ruling was issued, including changes or clarifications caused by regulations and court decisions.

A ruling that addresses the ongoing business activities will apply only to transactions that occur or tax liabilities that accrue from and after the date of the taxpayer’s ruling request.

If a ruling is directly applicable to a taxpayer’s situation, following the guidance in the ruling will constitute reasonable cause and shall result in the abatement of penalties.

The committee will attempt to issue rulings within forty-five (45) days. If it is anticipated to take longer than forty-five (45) days the committee will notify the taxpayer in writing and indicate a proposed day of issuance.

The following attachments provide further guidance regarding the ruling process. Section 597 of the Model City Tax Code addresses private taxpayer rulings and Arizona General Tax Ruling 97-1 provides existing state guidelines on this issue.

Sec. 597. Private taxpayer rulings; request; revocation or modification; definition.

(a) The Tax Collector shall issue private taxpayer rulings to taxpayers and potential taxpayers on request. Each request shall be in writing and shall:

(1) State the name, address and, if applicable, taxpayer identifying number of the taxpayer or potential taxpayer who requests the ruling.

(2) Describe all facts that are relevant to the requested ruling.

(3) State whether, to the best knowledge of the taxpayer or potential taxpayer, the issue or related issues are being considered by the Tax Collector or any other taxing jurisdiction in connection with an active audit, protest or appeal that involves the taxpayer or potential taxpayer and whether the same request has been or is being submitted to another taxing jurisdiction for a ruling.

(4) Be signed by the taxpayer or potential taxpayer who makes the request or by an authorized representative of the taxpayer or potential taxpayer.

(b) A private taxpayer ruling may be revoked or modified by either:

(1) A change or clarification in the law that was applicable at the time the ruling was issued, including changes or clarifications caused by regulations and court decisions.

(2) Actual written notice by the Tax Collector to the last known address of the taxpayer or potential taxpayer of the revocation or modification of the private taxpayer ruling.

(c) With respect to the taxpayer or prospective taxpayer to whom a private taxpayer ruling is issued, the revocation or modification of a private taxpayer ruling shall not be applied retroactively to tax periods or tax years before the effective date of the revocation or modification and the Tax Collector shall not assess any penalty or tax attributable to erroneous advice that is furnished to the taxpayer or potential taxpayer in the private taxpayer ruling if:

(1) The taxpayer reasonably relied on the private taxpayer ruling.

(2) The penalty or tax did not result either from a failure by the taxpayer to provide adequate or accurate information or from a change in the information.

(d) A private taxpayer ruling may not be relied upon, cited nor introduced into evidence in any proceeding by any taxpayer other than the taxpayer who received the ruling.

(e) A taxpayer may appeal the propriety of a retroactive application of a revoked or modified private taxpayer ruling by filing a written petition with the Tax Collector pursuant to Section 570 within forty-five (45) days after receiving written notice of the intent to retroactively apply a revoked or modified private taxpayer ruling.

(f) A private taxpayer ruling constitutes the Tax Collector's interpretation of the Sections of this Chapter only as they apply to the taxpayer making, and the particular facts contained in, the request.

(g) A private taxpayer ruling which addresses a taxpayer's ongoing business activities will apply only to transactions that occur or tax liabilities that accrue from and after the date of the taxpayer's ruling request.

(h) The Tax Collector shall attempt to issue private taxpayer rulings within forty-five (45) days after receiving the written request and on receiving the facts that are relevant to the ruling. If the ruling is expected to be delayed beyond the forty-five (45) days, the Tax Collector shall notify the requestor of the delay and the proposed date of issuance.

(i) Within thirty (30) days after being issued, the Tax Collector shall maintain the private taxpayer ruling as a public record and make it available at a reasonable cost for public inspection and copying. The text of private taxpayer rulings are open to public inspection subject to the confidentiality requirements prescribed by Section 510.

(j) In this Section, "private taxpayer ruling" means a written determination by the Tax Collector issued pursuant to this Section that interprets and applies one or more Sections contained in this Chapter and any applicable regulations.

(k) A private taxpayer ruling issued by the Arizona Department of Revenue pursuant to A.R.S. Section 42-2101 (renumbered 1/99) may be relied upon by the taxpayer to whom the ruling was issued and must be recognized and followed by any City in which such taxpayer has obtained a privilege license if the City has not issued a ruling addressing the facts described in the taxpayer's ruling request and the statute at issue in the taxpayer's ruling request is, in essence, worded and written the same as the applicable Section hereunder.

State tax Information Contact Arizona Department of Revenue at http://www.azdor.gov/Business/TransactionPrivilegeTax.aspx