Appendix III- Local Options


 

(Local Option #A) Include new agricultural machinery and equipment to exempt "income -producing capital equipment".  Replace Sec. ___-110(a)(14) with:

(14) new machinery and equipment consisting of tractors, tractor -drawn implements, self-powered implements, and drip irrigation lines, acquired by persons engaged or continuing in business for use in the commercial production of agricultural, horticultural, viticultural, or floricultural crops in this State. For the purposes of this paragraph, "new machinery and equipment" means machinery or equipment which has never been sold at retail except pursuant to leases or rentals which do not total two years or more.

(Local Option #B).  Exempt transactions with governmental agencies.  Replace (as needed, using "(Reserved)" for the other subparagraphs) Sec. ___-280 with:

Sec. ___-280.  Exclusion of transactions with specified governmental agencies. Notwithstanding provisions contained elsewhere in this Chapter, "gross income" derived from transactions that would be deemed taxable, if conducted with or for other customers or consumers, shall be deemed exempt from the taxes imposed by this Chapter when the customer or consumer is:

(1) the Federal Government.

(2) the State of Arizona, its departments and agencies, including the State universities maintained by the State Board of Regents; but not including State-chartered or State-insured banks, savings and loan institutions, and credit unions.

(3) any county of this State, its departments and agencies, including, but not limited to, public school districts.

(4) any other incorporated city or town in this State.

(5) this City.

(Local Option #B (continued)).  Replace Sec. ___-465(n) with:

(n) (Reserved)

(1) (Reserved)

(2) (Reserved)

(Local Option #C).  Create a moratorium on certain taxes involving certain real property in the City.  Replace Sec. ___-285 with:

Sec. ___-285.  Determination of gross income: moratorium on certain taxes relating to certain real property.

(a) A "moratorium period of 'X' years" means that consecutive passage of time commencing upon the date when real property first qualifies for the provisions of this Section and ending at midnight (12:00 p.m.) of that same month and day "X" years thereafter.

(b) Gross income derived from construction contracting upon real property not owned by a governmental entity shall be exempt from the taxes imposed by Sections ___-415 through ___-418 for a moratorium period of (___) years from the date upon which such real property shall have been annexed to and become a part of the City.

(Local Option #C).  Create a moratorium on certain taxes involving certain real property in the City.  Replace Sec. ___-285 with (continued)

(c) Gross income derived from the following activities shall be exempt from the taxes imposed by this Chapter for a moratorium period of (___) years, when such activities occur upon real property which, pursuant to State law, possesses appurtenant water rights which are based upon a history of agricultural irrigation, and such rights have been contractually or otherwise irrevocably committed to be surrendered, assigned or transferred to the City prior to the expiration of said moratorium period.

(1) construction contracting as provided by Sections ___-415 through ___-418.

(2) rental, leasing, or licensing for use of real property for any purpose other than for lodging or lodging space as provided by Section ___-445.

(d) The provisions of this Section shall be irrevocably vested in any real property that qualifies under this Section after the adoption of this Section as part of the City Code, or upon the adoption of any substantially similar ordinance previously adopted, whichever occurs earlier.

(Local Option #D).  Special exemption for activities occurring on ______________________ (MILITARY RESERVATION). Replace Sec.    290 with:

Sec. ___-290.  Exclusion of certain activities occurring on ___________________ (MILITARY RESERVATION).
Notwithstanding provisions contained elsewhere in this Chapter, gross income derived from the following transactions and activities that would be considered taxable, occurring elsewhere in the City, shall be deemed exempt from the taxes imposed by this Chapter when the transaction or activity occurs on ___________________ (MILITARY RESERVATION):

(1) construction contracting on _________________ (MILITARY RESERVATION).

(2) providing telecommunication or utility service to customers on _________________ (MILITARY RESERVATION).

(3) retail sales and restaurant activity at locations on _________________ (MILITARY RESERVATION).

(4) storage or use of tangible personal property by persons residing on _________________ (MILITARY RESERVATION).

(Local Option #E).  Make issuance of license conditional on meeting all other City Code provisions.  Replace Sec. ___-305(d) with:

(d) Licenses shall not be issued until all legal requirements are met.  It shall be a condition precedent to the issuance of a license that all statutes, ordinances, regulations, and other requirements affecting the public peace, health, and safety be complied with in total.

(Local Option #F).  Make license only 1-year in duration.  Replace Sec. ___-310(d) with:

(d) Any taxpayer who fails to renew his license on or before the date provided in subsection (a) above shall be deemed to be operating without a license after such date and until the appropriate application for renewal and a renewal fee of dollars ($ .00) has been received by the Tax Collector.

(Local Option #F (continued)).  Replace Sec. ___-310(a) with one of the following:

(rotating renewals)

(a) Except as provided in Section ___-320, the Privilege License shall be valid only for one (1) year from the date issued unless renewed each year by filing the appropriate application for renewal and paying the renewal fee of __________ dollars ($____.00) on or before the last business day of the month prior to the annual anniversary of the original issuance of such license. Application and payment for renewal must be received within the Tax Collector's office by such date to be deemed filed and paid.

(December renewals)

(a) Except as provided in Section ___-320, the Privilege License shall be valid only for the calendar year in which it is issued unless renewed each year by filing the appropriate application for renewal and paying the renewal fee of __________ dollars ($____.00) which is due and payable on January 1 and shall be considered delinquent if not received on or before the last business day of January. Application and payment for renewal must be received within the Tax Collector's office by such date to be deemed filed and paid.

(Local Option #G).  Exempt local advertising effective with State exemption in 1/86.  Replace Sec.___-405(b) with:

(b) On and after January 1, 1986 "gross income from local advertising" shall be exempt from all taxes imposed by this Chapter.

(Local Option #H).  Tax health spa membership fees as part of the amusements tax.  Replace Sec.___-410(a)(2) with:

(2) health spas, fitness centers, dance studios, or other persons who charge for the use of premises for sports, athletic, other health-related activities or instruction, whether on a per-event use, or for long-term usage, such as membership fees.

(Local Option #J).  Exempt golf-green fees.  Replace Sec. ___-410(b) with:

(b) However, gross income derived from golf green fees shall be exempt from the tax imposed by this Section.

(Local Option #K).  Exempt construction contracting at Fort Huachuca.  Replace Sec. ___-415(a)(2) with:

(2) However, gross income from the business activity of construction shall not include construction contracting derived from construction contracting activity occurring at Fort Huachuca.

(Local Option #K (continued)).  Replace Sec. ___-416(b)(3) with:

(3) When the improved real property is located at Fort Huachuca, the sale of such improved real property is excluded from the tax imposed by this Section.

(Local Option #K (continued)).  Replace Sec. ___-417(e) with:

(e) The tax imposed by this Section shall not apply to improved real property located at Fort Huachuca.

(Local Option #M).  Exempt the cost of land from gross income of speculative builders. Replace, IN LIEU OF LOCAL OPTION #N, Sec. ___-416(b)(2) with:

(2) Cost of land.  Gross income from the sale of improved real property shall not include the seller's original purchase price of the land which is included in the real property sold, when a charge for such land is included in the total selling price of the real property sold.

(Local Option #N).  Exempt the fair market value of land from gross income of speculative builders.  Replace, IN LIEU OF LOCAL OPTION #M, Sec. ___-416(b)(2) with:

(2) Fair market value of land.  Gross income from the sale of improved real property shall not include the "fair market value" of the land which is included in the real property sold, when a charge for such land is included in the total selling price of the real property sold.

(A) Except as provided in subsection (b)(2)(B) below, the taxpayer must document such "fair market value" to the satisfaction of the Tax Collector, and maintain and provide such documentation upon demand in addition to and in like manner to the books and records required in Article III.

(B) In lieu of the documented fair market value of land allowed in subsection (b)(2)(A) above, an amount equal to twenty percent (20%) of the total selling price may be used to estimate the "fair market value" of land.

(Local Option #P).  Impose a tax upon the wholesale sales of feed.  Replace Reg. ___-460.1(a)(2) with:

(2) Sales of feed at wholesale, per Section ___-420.

(Local Option #P (continued)).  Replace Sec. ___-420 with (continued):
Sec. ___-420.  Feed at wholesale.

(a) The tax rate shall be at an amount equal to __________ percent (____%) of the gross income from the business activity upon every person engaging or continuing in the business of the sale of feed, salt, vitamins, and other additives to feed, to persons engaged in the raising or feeding of livestock or poultry purchased or raised for slaughter, with no deduction for the income derived from the "resale" of such feed.

(b) The tax imposed by this Section shall not apply to:

(1) out-of-City sales.

(2) out-of-State sales.

(Local Option #Q).  Impose a Rental Occupancy Tax.  Replace Sec. ___-300(a)(3) with:

(3) every person required to report and pay a tax upon Rental Occupancy, as imposed by Section ___-440.

(Local Option #Q (continued)).  Replace Reg. ___-300.1(a)(5) with:

(5) He is required to report and pay the tax upon Rental Occupancy imposed by Section ___-440.

(Local Option #Q (continued)).  Replace Reg. ___-350.2(e)(9) with:

(9) payments by tenants subject to the tax upon Rental Occupancy imposed by Section ___-440.

(Local Option #Q (continued)).  Replace Sec. ___-400(a)(2) with:

(2) a Privilege Tax upon certain persons for the privilege of occupancy of real property, in accordance with the provisions of Section ___-440.

(Local Option #Q (continued)).  Replace Sec. ___-440 with:

Sec. ___-440.  Rental occupancy.

(a) For the purposes of this Section only, the following definitions shall apply:

(1) "Landlord" means any lessor of real property under a pre-existing lease.

(2) "Pre-existing Lease" means any written lease, license for use, or rental agreement entered into prior to December 1, 1967; except for the following:

(A) any bilateral amendment to such written agreement which was entered into subsequent to December 1, 1967, wherein the length of the term or the size of the premises affected is changed or both.

(B) any such agreement for lodging or lodging space.

(3) "Rent" means all consideration paid by the tenant to his landlord or to another in payment of or diminution of his own or his landlord's obligation in connection with the real property occupied by the tenant, whether or not such occupancy is designated as a rent, lease or license for use of real property.

(4) "Tenant" means any lessee of real property under a pre-existing lease.

(b) The tax rate shall be at an amount of __________ percent (____%) of the gross rent paid by a tenant, to the extent of his occupancy of real property in this City under a pre-existing lease, upon such tenant, for the privilege of such occupancy, subject to the provisions of this Section.

(c) Exclusions.  The tax imposed by this Section shall not apply to:

(1) occupancy by a tenant which the Constitution or laws of the United States or of the State of Arizona prohibit the City from taxing.

(2) occupancy by a tenant of a landlord which the Constitution or laws of the United States or of the State of Arizona prohibit the City from taxing.

(3) occupancy of lodging or lodging space.

(4) occupancy of real property under other than a pre-existing lease.

(d) Duty of landlords.  Every landlord of a tenant subject to the tax:

(1) shall collect the tax imposed by this Section from the tenant liable for the tax at the same time as and together with the tenant's periodic or other payment of rent.  The tax required to be collected shall constitute a debt owed by the landlord to the City.

(2) shall be considered a taxpayer subject to all licensing, recordkeeping, and reporting requirements of this Chapter.

(e) Duty of tenants.  Every tenant liable for the tax:

(1) shall, in any instance in which the tax has not been collected by his landlord, remit such tax to the Tax Collector, and in such case, be subject to all licensing and reporting requirements of this Chapter.

(2) shall maintain, and provide upon request, books and records sufficient for the Tax Collector to determine the tax liability of such tenant.

(f) Interest and civil penalties shall be the liability of the landlord collecting and remitting the tax; provided, however, that if the landlord can present clear and convincing evidence that the delinquency was caused by the tenant, then said interest and penalties shall be the liability of the tenant.

(g) Extension of rights of appeal to include tenants and landlords.

(1) Any landlord or tenant may avail himself of the provisions of Sections ___-570 through ___-575, relating to appeals, and, except as modified hereunder, all provisions of said Sections shall apply.

(2) For the purposes of preserving appeal rights, an assessment against a landlord may be protested and appealed by any tenant paying or liable to pay the tax for the occupancy included in such assessment.

(3) Payment of the tax herein imposed to a landlord by a tenant shall be deemed payment of the tax for the tenant for the purposes of allowing a protest to be initiated under Sections ___-570 through ___-575.

(4) The filing of a protest petition by a tenant shall not relieve the landlord of his obligation to report and remit the protested tax, or any subsequent periodic payments of tax governed by the initial protest.

(h) Refunds.  Any refunds of taxes authorized by this Chapter shall be made to the tenant.  Any refunds of interest and civil penalties authorized by this Chapter shall be made to the person liable for such, as provided in subsection (f) above.

(Local Option #R).  Exempt commercial rental of a single unit to a single tenant as "casual activity" with stipulations.  Replace Sec. ___-445(g) with:

(g) Single-unit/single-tenant rental, leasing, or licensing.  A person who has only one unit of commercial property rented or available for rent, lease, or license shall be deemed not to be in the business of rental, leasing, or licensing of real property, as provided by Regulation, and further provided that both of the following conditions exist:

(1) such lessor has income from any other source; and

(2) the scope and degree of rental activity clearly indicates that it is an investment rather than a business activity of the lessor.

(Local Option #R (continued)).  Replace Reg. ___-445.1(b) with:

(b) For the purposes of this subsection (b) only, the term "rent" shall include "lease" and "license for use".  For the purposes of determining if a single-unit/single-tenant commercial rental is "casual", the following provisions shall apply:

(1) A "unit" of real property means any single real property location, or any portion, rented to a single tenant.  For example:

(A) A three-story office building leased to a company as sole and single tenant is considered one unit of property.

(B) A building where individual spaces are rented to two (2) or more individuals, even though members of the same profession or business, on separate leases, is deemed two (2) or more units.

(C) A building owner who leases out a portion of that building to another has two (2) units of property rented or available for rent.

(2) "Commercial" property is any real property, or portion of such property, used for any purpose other than lodging or lodging space, including structures built for lodging but used otherwise, such as model homes, apartments used as offices, etc.

(3) If a person has one (1) unit of commercial property rented or available for rent, and has one or more "lodging spaces" also rented or available for rent, he shall be considered in the business of rental of real property, and may not claim the rental of his single unit of commercial property as "casual".

(4) Income from a source in connection with the rental of real property, such as income for maintenance or service charges to the tenant, is not "income from another source".

(5) "Income from another source" must be of an amount to indicate that the property is clearly held for investment.  Minimal amounts received as interest from savings accounts, and the like, do not qualify.

(Local Option #R (continued)).  Replace Reg. ___-445.1(b) with (continued):

(6) A corporation, or a partnership comprising other than individual members of the same immediate family, is considered to be in business, and therefore even if it has only one unit of real property rented or available for rent, it cannot be deemed to have made a non-business investment, and cannot claim such rental as "casual".

(7) Note that there are four (4) conditions for rental of commercial real property to be deemed "casual activity", which must all be met.  They are, in brief:

(A) The lessor has only one unit of commercial property rented or available for rent, counting any commercial property he occupies, if any; and

(B) The lessor has no lodging rented or available for rent; and

(C) The lessor has significant income from another source; and

(D) The scope of the rental activity is clearly a non-business investment.

(Local Option #S).  Exempt lodging rental (except for rental to transients, if you have NOT chosen Model Option #6).  IF YOU HAVE NOT CHOSEN MODEL OPTION #6, Replace Sec. ___-445(h) with:

(h) Except as may be provided in another Section of this Chapter, the tax prescribed by this Section shall not include gross income from the rental, leasing, or licensing of lodging or lodging space to an individual who resides therein.

(Local Option #S (continued)).  IF YOU HAVE CHOSEN MODEL OPTION #6, Replace Sec. ___-445(h) with:

(h) The tax prescribed by this Section shall not include gross income from the rental, leasing, or licensing of lodging or lodging space to an individual who resides therein.

(Local Option #S (continued)).  Replace Reg. ___-200.1(b) with:

(Reserved)

(Local Option #T).  Exempt certain rental to subsidiaries.  Replace Sec. ___-445(i) with:

(i) Exempt from the tax imposed by this Section is gross income derived from the rental, leasing, or licensing of real property to a corporation; provided that the lessor's aggregate holdings in the lessee corporation amount to at least eighty percent (80%) of the voting stock of the lessee corporation.

(Local Option #U). (Reserved) (1995 amendments repealed this option making the exemption for fly-away aircraft part of the model.)

(Local Option #V).  Impose a two-level tax structure on sales/purchases of "big-ticket" items. Replace Sec. ___-460(d) with:

(d) Notwithstanding the provisions of subsection (a) above, when the gross income from the sale of a single item of tangible personal property exceeds __________ dollars ($__________), the __________ percent (____%) tax rate shall apply to the first $__________.  Above $__________, the measure of tax shall be at a rate of ___ percent (____%).

[Local Option #V (continued)].  ONLY IF YOU HAVE NOT CHOSEN MODEL OPTION #15, replace Sec. ___-610(e) with:

(e) Notwithstanding the provisions of subsection (a) above, when the amount subject to the tax for any single item of tangible personal property exceeds __________ dollars ($__________), the _______ percent (____%) tax rate shall apply to the first $__________.  Above $__________, the measure of tax shall be at a rate of_______ percent (____%).

(Local Option #W).  Exempt sales/purchases of breeding and production animals.  Replace, ONLY IF YOU HAVE NOT CHOSEN MODEL OPTION #10, Sec. ___-465(r)(4) with:

(4) neat animals, horses, asses, sheep, swine, or goats for the purpose of becoming breeding or production stock, including sales of breedings or ownership shares in such animals.

(Local Option #W (continued)).  ONLY IF YOU HAVE NOT CHOSEN MODEL OPTION #15, AND IF YOU HAVE NOT CHOSEN MODEL OPTION #10, replace Sec. ___-660(r)(4) with:

(4) neat animals, horses, asses, sheep, swine, or goats acquired for the purpose of becoming breeding or production stock, including the acquisition of breedings or ownership shares in such animals.

(Local Option #X).  Exemption for sales of "fine art".  Replace Sec. ___-465(t) with:

(t) sales of paintings, sculptures or similar works of fine art, provided that such works of fine art are sold by the original artist; and provided further that sales of "art creations", such as jewelry, macrame, glasswork, pottery, woodwork, metalwork, furniture, and clothing, when such "art creations" have a dual purpose, both aesthetic and utilitarian, are not exempt, whether sold by the artist or by another.

(Local Option #X (continued)).  ONLY IF YOU HAVE NOT CHOSEN MODEL OPTION #15, replace Sec. ___-660(t) with:

(t) paintings, sculptures, or similar works of fine art, provided that such works of fine art are purchased from the original artist; and provided further that "art creations", such as jewelry, macrame, glasswork, pottery, woodwork, metalwork, furniture, and clothing, when such "art creations" have a dual purpose, both aesthetic and utilitarian, are not exempt, whether purchased from the artist or from another.

(Local Option #Y).  (Reserved) (1995 amendments repealed this option relating to an exemption for used manufactured buildings.

(Local Option #Z).  Exempt sales/purchases of college textbooks.  Replace Sec. ___-465(w) with:

(w) sales of textbooks that are required by any State university or community college by any bookstore.

(Local Option #Z (continued)).  ONLY IF YOU HAVE NOT CHOSEN MODEL OPTION #15, replace Sec. ___-660(w) with:

(w) textbooks required by any State university or community college, when acquired from a bookstore.

(Local Option #AA).  Exempt employee meals from tax.  Replace Sec. ___-465(x) with:

(x) sales of food and drink to a properly licensed restaurant which provides such food and drink without monetary charge to its employees for their own consumption on the premises during such employees' hours of employment.

(Local Option #AA (continued)).  ONLY IF YOU HAVE NOT CHOSEN MODEL OPTION #15, replace Sec. ___-660(x) with:

(x) food and drink which a properly licensed restaurant provides without monetary charge to its employees for their own consumption on the premises during such employees' hours of employment.

(Local Option #AA (continued)).  ONLY IF YOU HAVE NOT CHOSEN MODEL OPTION #15, replace Sec. ___-610(b)(5) with:

(5) (Reserved)

(Local Option #BB). (Reserved) (1998 amendments repealed this option and made sales of food to public school cafeterias exempt as part of the model code).

(Local Option #CC).  Exempt gross income from destructive testing.  Replace Sec. ___-465(z) with:

(z) gross income received for tangible personal property consisting of manufactured items destroyed by being subjected to destructive stress, strain or similar testing, for the purpose of developing engineering information or for the purpose of quality control, but only to the extent that a sale of said property would otherwise be exempt by the provisions of this Chapter.

(Local Option #DD).  Exempt cable TV income from telecommunications tax.  Replace Sec.___-470(e) with:

(e) However, gross income from the providing of telecommunication services by a cable television system, as such system is defined in A.R.S.  Section 9-505, shall be exempt from the tax imposed by this Section.

(Local Option #EE).  Exempt motor vehicle transporting for hire to out-of-City locations (if you have NOT chosen Model Option #12 exempting motor vehicle transporting for hire).  ONLY IF YOU HAVE NOT CHOSEN MODEL OPTION #12, replace Sec. ___-475(d)(3) with:

(3) gross income derived from the transporting of persons or property by motor vehicle to a point outside the City.

(Local Option #FF).  Exempt towing from the tax imposed upon transporting for hire (ONLY if you have NOT removed the tax on transporting for hire by motor vehicle).  ONLY IF YOU HAVE NOT CHOSEN MODEL OPTION #12, replace Sec. ___-475(d)(4) with:

(4) gross income derived from the towing of automobiles, trucks, and other motor vehicles or equipment by rental agencies, storage garages, service stations, parking lots, or other similar persons.

(Local Option #GG).  Tax municipal utility services to out-of-City customers where such service is not subject to an "equivalent excise tax".  Replace Sec. ___-480(a)(2) with:

(2) consumers or ratepayers of this City, whether within the City or without, to the extent that this City provides such persons utility services, excluding consumers or ratepayers who are residents of another city or town which levies an equivalent excise tax upon this City for providing such utility services to such persons.

(Local Option #HH).  Exempt from Use Tax certain charitable donations (only if you have NOT chosen Model Option #15, removing the Use Tax).  ONLY IF YOU HAVE NOT CHOSEN MODEL OPTION #15, replace Sec. ___-660(y) with:

(y) Tangible personal property donated to an organization or entity qualifying as an exempt organization under 26 U.S.C. Section 501(c)(3); if and only if:

(1) the donor is engaged or continuing in a business activity subject to a tax imposed by Article IV; and

(2) the donor originally purchased the donated property for resale in the ordinary course of the donor's business; and

(3) the donor obtained from the donee a letter or other evidence satisfactory to the Tax Collector of qualification under 26 U.S.C. Section 501(c)(3) from the Internal Revenue Service or other appropriate federal agency; and

(4) the donor maintains, and provides upon demand, such evidence to the Tax Collector, in a manner similar to other documentation required under Article III.

(Local Option #JJ).  Exempt the City from Use Tax (only if you have NOT chosen Model Option #15, removing the Use Tax).  ONLY IF YOU HAVE NOT CHOSEN MODEL OPTION #15, replace Sec. ___-660(z) with:

(z) tangible personal property used or stored by this City.

(Local Option #KK).  Events sponsored by charitable non-profit organizations with attendance in excess of 10,000 people.  Replace Sec. ___-270(c)(3) with:

(3) Fund raising activities of charitable, religious, or educational organizations which include events for which admission is charged where attendance exceeds ten thousand (10,000) shall be deemed regularly conducted business activity for the purposes of this Chapter.

(Local Option #LL).  Impose a Jet Fuel Tax. Add definition to Sec. -100:

"Jet Fuel" means jet fuel as defined in A.R.S. Section 42-5351.

(Local Option #LL (continued)).  Replace Sec. ___-400(a)(3) with:

(3) A privilege tax upon persons for the privilege of selling jet fuel, whether derived from residents of the City or not, or whether derived from within the City or from without, in accordance with the provisions of Section ___-422.

(Local Option #LL (continued)).  Replace Sec. ___-400(c) with:

(c) Presumption. For the purpose of proper administration of this Chapter and to prevent evasion of the taxes imposed by this Chapter, it shall be presumed that all gross income, or gallons sold, is subject to the tax until the contrary is established by the taxpayer.

(Local Option #LL continued on next page)

(Local Option #LL (continued)).  Replace Sec. ___-422 with:

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) Except as provided in Section ___-567, 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) 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.

(Local Option #LL (continued)).  ONLY IF YOU HAVE NOT CHOSEN MODEL OPTION #15, replace Sec. ___-610(b)(1) with:

(1) cost of tangible personal property, except jet fuel, acquired from a retailer, upon every person storing or using such property in this City.

(Local Option #LL (continued)).  ONLY IF YOU HAVE NOT CHOSEN MODEL OPTION #15, replace Sec. ___-610(f) with:

(f) Additional Imposition. The tax rate shall be at an amount equal to ______ cents per gallon of jet fuel upon every person storing or using such property in this City.

( Local Option #MM). Exempt certain job printing shipped out of state. Replace Sec. -425(b)(6) with :

(6) Sales of job printing, engraving, embossing and copying for use outside this state if the materials are shipped or delivered out of this state regardless of where title to the materials passes or their free on board point.

( Local Option #NN). Tax credit offset for cable license fees. Replace Sec. -265) with :

Sec. ___-265. Tax credit offset for cable license fees.Notwithstanding all other provisions of this tax code, there shall be allowed as an offset, up to amount of tax due from a cable operator licensed by the City arising from its business activities relating to or forming a part of its cable system operation under such license by such operator and taxable under this tax code, any amounts paid to the City for cable license fees.

( Local Option #OO). Tax on commercial rentals. Replace Sec. -445(m) with:

(m) Notwithstanding the other provisions of this section, the tax imposed by this section does not apply to the rental, leasing or licensing for use of commercial property.

( Local Option #PP). Exempt sales of Electricity or Natural Gas to Manufacturing or Smelting Operations.

Replace Sec. -480(k) with:

(k) The tax imposed by this section shall not apply to the gross proceeds of sales or gross income derived from sales of electricity or natural gas to a business that is principally engaged in manufacturing or smelting operations and that uses at least fifty-one per cent of the electricity or natural gas in the manufacturing or smelting operations. This paragraph does not apply to gas transportation services. For the purposes of this paragraph:

(1) "Gas transportation services" means the services of transporting natural gas to a natural gas customer or to a natural gas distribution facility if the natural gas was purchased from a supplier other than the utility.

(2) "Manufacturing" means the performance as a business of an integrated series of operations that places tangible personal property in a form, composition or character different from that in which it was acquired and transforms it into a different product with a distinctive name, character or use. Manufacturing does not include processing, fabricating, job printing, mining, generating electricity or operating a restaurant.

(3) "Principally engaged" means at least fifty-one per cent of the business is a manufacturing or smelting operation.

(4) "Smelting" means to melt or fuse a metalliferous mineral, often with an accompanying chemical change, usually to separate the metal.

 

( Local Option #PP). Exempt sales of Electricity or Natural Gas to Manufacturing or Smelting Operations.

Replace Sec. -660(ss) with:

(ss) The tax imposed by this section shall not apply to the gross proceeds of sales or gross income derived from sales of electricity or natural gas to a business that is principally engaged in manufacturing or smelting operations and that uses at least fifty-one per cent of the electricity or natural gas in the manufacturing or smelting operations. This paragraph does not apply to gas transportation services. For the purposes of this paragraph:

(1) "Gas transportation services" means the services of transporting natural gas to a natural gas customer or to a natural gas distribution facility if the natural gas was purchased from a supplier other than the utility.

(2) "Manufacturing" means the performance as a business of an integrated series of operations that places tangible personal property in a form, composition or character different from that in which it was acquired and transforms it into a different product with a distinctive name, character or use. Manufacturing does not include processing, fabricating, job printing, mining, generating electricity or operating a restaurant.

(3) "Principally engaged" means at least fifty-one per cent of the business is a manufacturing or smelting operation.

(4) "Smelting" means to melt or fuse a metalliferous mineral, often with an accompanying chemical change, usually to separate the metal.

 

( Local Option #QQ).

(TT) Sales of works of Fine Art, as defined in A.R.S Section 44-1771, at an art auction or gallery in this state to nonresidents of this state for use outside this state if the vendor ships or delivers the work of fine art to a destination outside this state.)++

(UU) Computer data center equipment sold to the owner, operator or qualified colocation tenant of a computer data center that is certified by by the Arizona Commerce Authority under A.R.S. Section 41_1519 or an authorized agent of the owner, operatior or qualified colaction tenant during the qualification period for use in the qualified computer data center. For the purposes of this paragraph, "Computer Data Center", "Computer Data Center Equipment", "Qualification Period" and "Qualified Colocation Tenant" Have the same meanings perscribed in A.R.S. Section 41-1519.

(VV) The sale, manufacture, wholesale or distribution to or among any wholesalers, distributors or retailers, of food items intended for human consumption as defined by rule adopted pursuant to A.R.S Section 42-5106 or items prescribed by A.R.S. Section 42-5106, Subsection D for home consumption or for consumption on the premises.

(WW) The sale of any container or packaging used exclusively for transporting, protecting or consuming food items intended for human consumption as defined by rule adopted pursuant to A.R.S. Section 42-5106 or items prescribed by A.R.S Section 42-5106, Subsection D for home consumtion or for consumption on the premises.