Bill Text: AZ SB1351 | 2013 | Fifty-first Legislature 1st Regular | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Destination management company; exemption; refund

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2013-03-28 - House Committee of the Whole action: Do Pass Amended [SB1351 Detail]

Download: Arizona-2013-SB1351-Introduced.html

 

 

 

REFERENCE TITLE: destination management company; exemption; refund

 

 

 

State of Arizona

Senate

Fifty-first Legislature

First Regular Session

2013

 

 

SB 1351

 

Introduced by

Senator Reagan; Representatives Campbell, Gallego, Olson: Senators Farley, Meza, Tovar, Worsley, Yarbrough; Representatives Lesko, Wheeler

 

 

AN ACT

 

amending title 42, chapter 5, article 1, Arizona Revised Statutes, by adding section 42-5039; relating to transaction privilege tax and use tax.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 



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

Section 1.  Title 42, chapter 5, article 1, Arizona Revised Statutes, is amended by adding section 42-5039, to read:

START_STATUTE42-5039.  Qualified destination management companies; definitions

A.  A qualified destination management company is not liable for any tax under article 2 of this chapter on the gross proceeds of sale or gross income derived from a qualified contract for destination management services.

B.  A qualified destination management company is a consumer and user of any tangible personal property or other activity or services taxable under article 2 of this chapter that the qualified destination management company arranges pursuant to a qualified contract for destination management services.

C.  For the purposes of this section:

1.  "Destination management services" means the business of coordinating, designing and implementing the delivery by a third party of four or more of the following:

(a)  Transportation.

(b)  Entertainment.

(c)  Food or beverage.

(d)  Recreational or amusement activity.

(e)  Tours.

(f)  Event venue.

(g)  Theme decor.

2.  "Qualified contract" means a contract for the provision of destination management services by a qualified destination management company that contains both of the following terms:

(a)  The qualified destination management company receives payment from or on behalf of the qualified destination management company's client for the cost of the destination management services arranged by the qualified destination management company.

(b)  The qualified destination management company is obligated to pay the vendor supplying the destination management services arranged by the qualified destination management company including the vendor charges for applicable transaction privilege tax or collection of use tax.

3.  "Qualified destination management company" means a person that receives on an annual basis at least eighty per cent of its total revenue from destination management services. END_STATUTE

Sec. 2.  Retroactivity; refund

A.  Section 42-5039, Arizona Revised Statutes, as added by this act, applies retroactively to taxable years beginning from and after January 1, 2002.

B.  Any claim for refund of transaction privilege tax paid on gross proceeds of sales or gross income that was originally reported by a qualified destination management company on a return under title 42, chapter 5, article 2, Arizona Revised Statutes, that is based on the retroactive application of section 42-5039, Arizona Revised Statutes, as added by this act, must be submitted pursuant to section 42-1118, Arizona Revised Statutes, to the department of revenue on or before December 31, 2013. Failure to file a claim on or before December 31, 2013 constitutes a waiver of the claim for refund under this section.

C.  The burden is on the qualified destination management company to establish by competent evidence the amount of tax paid for all taxable periods and the amount that it paid under title 42, chapter 5, article 2, Arizona Revised Statutes, on its qualified contracts for destination management services as defined by section 42-5039, Arizona Revised Statutes, as added by this act. The department of revenue shall:

1.  Review all timely filed claims.

2.  Determine, on audit if necessary, the correct amount of each claim.

3.  Notify the taxpayer of its determination. The notice is final unless the taxpayer appeals in the manner provided in section 42-1119, Arizona Revised Statutes.

D.  Notwithstanding section 42-1119, Arizona Revised Statutes, the department of revenue shall not make a refund until after the determination of the amount of all refund claims filed pursuant to this section. If a taxpayer appeals the department's determination, the department pursuant to the rules protecting confidentiality under title 42, chapter 2, article 1, Arizona Revised Statutes, may notify other taxpayers who have filed claims under this section as to the nature and extent of the delay.

E.  The total amount of refunds issued under this section shall not be more than ten thousand dollars. If the total amount of refundable claims filed under this section is more than ten thousand dollars, the department shall reduce each claim proportionately so that the total amount of refunds is not more than ten thousand dollars.

F.  Interest shall not be allowed or compounded on a refund paid on or before July 1, 2014.  Unpaid refund amounts from and after June 30, 2014, shall accrue interest under section 42-1123, Arizona Revised Statutes.

feedback