Arizona Sales Tax  Most important revenue source  Limited property tax  Limited flexibility with Revenue Sharing

Model City Tax Code  Cities & Towns impose sales taxes ~ 1960  1987: MCTC created to provide uniformity  Improve ease of compliance for businesses  All Cities and Towns use the MCTC  DOR Program – Program vs. Non-Program  Appendices  Local & Model Options  Green Pages

Differences from the State  Base Differences  Advertising  Speculative Builder / Owner Builder  Residential Rental  Commercial Lease  Real Property & TPP Licensing for Use  Food for Home Consumption

Differences from the State  Definitional Differences  City-based Nexus  Jet Fuel  Manufactured Buildings  Hotel Tax  Broker Category  Etc., Etc.

Ongoing MCTC Clean-up Efforts  Green Page Elimination  Many small items have already been removed by City and Town Councils  Broader Issue of Licensing  Common Item Conversions  Option Reduction Efforts  Eliminate the Rarely Used  Reduce Multiple Variations  Renumber and Reorganize

TPT Simplification Task Force  Set up by Executive Order  Simplify the tax code to make compliance by business easier  Reps from business and government  Makes recommendations to the Legislature in December

TPT Simplification Task Force 3 Work Groups  Base Differences  Definitional Differences  State & Local Standardization  Contracting  Online Retail  Federal Bills  Single Administration (Remittance)  Single Audit (MJAC)

Online Portal Project HB2466  Requires the 18 Non-Program Cities to create an Online Portal, providing a single point to file and pay all Non-Program City Taxes  Optimal solution will also allow Licensing for all Non-Program Cities  League, UAC, DOA, DOR working together  Contract Awarded by October 1, 2013  Operational by January 1, 2015

Online Portal Project Concept: Taxpayer’s Perspective  Taxpayer will log in once, select the cities and towns to file a return  Taxpayer feels like they are filing one return; authorizing one ACH payment  Automatic upload is possible in place of manual data entry

Online Portal Project Concept: City Perspective  Vendor breaks the data out by city, sending each their separate return/payment data  Vendor will create import/export files that work with each city’s existing system  Each city processes its own ACH transaction: vendor never handles any money

Online Portal Project General  A move toward compliance with single administration/remittance for Online Retail  Does not replace or eliminate existing filing methods – Adds a new venue to report  Does not equal a step toward State preemption of Non-Program cities