*This information is for Model City Tax Code purposes only
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.
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