LL
*This information is for Model City Tax Code purposes only
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) 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) the application of the tax is limited to amounts of not more than ten million gallons of jet fuel purchased by each purchaser in each calendar year. purchases in excess of ten million gallons per purchaser per year are exempt.
(f) beginning from and after November 30, 2017, the revenues generated by each public airport must be segregated in separate accounts for the exclusive expenditure for the capital or operating costs of the airport, the airport system or other local airport facilities owned or operated by the municipality and directly and substantially related to the air transportation of passengers or property.
(g) 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.
