PREFILED    JAN 05 2016

REFERENCE TITLE: taxation; destination management companies' vendors

State of Arizona Senate Fifty-second Legislature Second Regular Session 2016

SB 1041

Introduced by Senator Kavanagh

 

AN ACT

 

Relating to transaction privilege and use taxes.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

Be it enacted by the Legislature of the State of Arizona:

Section 1.  Tax exemption; vendors supplying goods or services to destination management companies; definition

A.  Notwithstanding section 42-5039, Arizona Revised Statutes, and Laws 2013, chapter 236, section 16:

1.  Transaction privilege and use taxes do not apply to the gross proceeds or gross income from sales, or to the storage, use or consumption, of goods or services supplied or provided by a vendor to a qualified destination management company during taxable periods beginning from and after December 31, 2001 through September 13, 2013 if the vendor did not collect from the destination management company amounts necessary to pay the vendor's tax liability.

2.  Any such amount assessed to a vendor as a tax, interest or a penalty before the effective date of this act is remitted and forgiven.

3.  Any lien filed pursuant to title 42, chapter 1, article 4, Arizona Revised Statutes, against the vendor's property and rights to property to collect such an amount of tax, interest or penalty or any other amount is abated, and the department of revenue shall do all of the following:

(a)  Release the property and rights to property from the lien.

(b)  Withdraw any recorded notice of lien.

(c)  On the vendor's written request, issue a certificate of release of lien to the vendor against whom the lien was claimed.  The certificate constitutes conclusive evidence that the property has been released.

B.  For the purposes of this section, "qualified destination management company" has the same meaning prescribed in section 42-5039, Arizona Revised Statutes.