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Item # J.
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| Town Council Regular Session |
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| Information |
| SUBJECT: |
| Resolution No. (R)16-39, authorizing and approving modifications to an Intergovernmental Agreement between the Arizona Department of Revenue and the Town of Oro Valley regarding administration of taxes imposed by the state, cities or towns |
| RECOMMENDATION: |
| Staff recommends approval. |
| EXECUTIVE SUMMARY: |
| This item requests approval of modifications to the Intergovernmental Agreement (IGA) originally approved by Town Council on June 17, 2015, between the Town of Oro Valley and the Arizona Department of Revenue (ADOR) related to the administration and collection of transaction privilege taxes for cities and towns, including the Town of Oro Valley. The recommended modifications serve to clarify and streamline some aspects of tax collection, as well as provide more municipal input into responding to taxpayer written requests for rulings on the Model City Tax Code. |
| BACKGROUND OR DETAILED INFORMATION: |
In June 2015, the Town approved a new IGA with the ADOR. The adoption of a new IGA was necessary to conform with changes required by uniform tax administration as governed by A.R.S. 42-6001. Specifically, these changes were caused by simplification language included in House Bill 2111 and House Bill 2389 in 2014. The term of the new IGA was from July 1, 2015, through June 30, 2016, with automatic renewals each year. Either party has the right to reopen and renegotiate the terms according to provisions within the agreement.
In July 2016, the Town received a list of modifications to the IGA through the League of Arizona Cities and Towns. Several issues were presented over the course of the past year that needed to be addressed in the IGA. The review process was initiated by the ADOR working with the League of Arizona Cities and Towns and key city and town representatives. If approved, these modifications would be effective from and after July 1, 2016, and would automatically renew each year.
A summary of the changes to the IGA is attached to this Council item as back up material. |
| FISCAL IMPACT: |
| N/A |
| SUGGESTED MOTION: |
I MOVE to approve Resolution No. (R)16-39, approving modifications to an intergovernmental agreement between the Arizona Department of Revenue and the Town of Oro Valley regarding administration of taxes imposed by the state, cities or towns.
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I MOVE... |
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