Page 1, between lines 1 and 2, insert:
“Section 1. Title 9, chapter 4, article 8,
Arizona Revised Statutes, is amended by adding section 9-500.38, to read:
START_STATUTE9-500.38. Limitations on regulation of vacation rentals; state
preemption; definitions
A. A CITY OR TOWN MAY
NOT PROHIBIT VACATION RENTALS OR SHORT-TERM RENTALS, RESTRICT THE USE OF
VACATION RENTALS OR SHORT-TERM RENTALS OR REGULATE VACATION RENTALS OR
SHORT-TERM RENTALS BASED SOLELY ON THEIR CLASSIFICATION, USE OR OCCUPANCY.
B. NOTWITHSTANDING subSECTION
A of this section, A CITY OR TOWN MAY REGULATE VACATION RENTALS IF THE
REGULATION IS NARROWLY TAILORED TO PROTECT THE PUBLIC HEALTH AND SAFETY AND IS
FOR THE FOLLOWING PURPOSES:
1. PROTECTION OF THE
PUBLIC’S HEALTH AND SAFETY, AS DEFINED IN title 12, CHAPTER 8, ARTICLE 2.1,
INCLUDING RULES AND REGULATIONS RELATED TO FIRE AND BUILDING CODES, HEALTH AND
SANITATION, TRANSPORTATION OR TRAFFIC CONTROL, SOLID OR HAZARDOUS WASTE AND
POLLUTION CONTROL.
2. LIMITING OR
PROHIBITING THE USE OF A VACATION RENTAL FOR THE PURPOSEs OF HOUSING SEX
OFFENDERS, SELLING ILLEGAL DRUGS, LIQUOR CONTROL OR PORNOGRAPHY, OBSCENITY,
NUDE OR TOPLESS DANCING AND OTHER ADULT-ORIENTED BUSINESSES.
C. FOR the PURPOSES OF
THIS SECTION, “VACATION RENTAL” OR “SHORT-TERM RENTAL” MEANS ANY INDIVIDUALLY
OR COLLECTIVELY OWNED SINGLE-FAMILY OR ONE-TO-FOUR-FAMILY HOUSE OR DWELLING
UNIT OR ANY UNIT OR GROUP OF UNITS IN A CONDOMINIUM, COOPERATIVE OR TIMESHARE,
THAT IS ALSO A TRANSIENT PUBLIC LODGING ESTABLISHMENT.
Sec. 2. Title 11, chapter 2, article 4, Arizona
Revised Statutes, is amended by adding section 11-269.15, to read:
START_STATUTE11-269.15. Limitations on regulation of vacation rentals; state
preemption; definitions
A. A COUNTY MAY NOT
PROHIBIT VACATION RENTALS OR SHORT-TERM RENTALS, RESTRICT THE USE OF VACATION
RENTALS OR SHORT-TERM RENTALS OR REGULATE VACATION RENTALS OR SHORT-TERM
RENTALS BASED SOLELY ON THEIR CLASSIFICATION, USE OR OCCUPANCY.
B. NOTWITHSTANDING subSECTION
A of this section, A COUNTY MAY REGULATE VACATION RENTALS IF THE REGULATION IS
NARROWLY TAILORED TO PROTECT THE PUBLIC HEALTH AND SAFETY AND IS FOR THE
FOLLOWING PURPOSES:
1. PROTECTION OF THE
PUBLIC’S HEALTH AND SAFETY, AS DEFINED IN title 12, CHAPTER 8, ARTICLE 2.1
INCLUDING RULES AND REGULATIONS RELATED TO FIRE AND BUILDING CODES, HEALTH AND
SANITATION, TRANSPORTATION OR TRAFFIC CONTROL, SOLID OR HAZARDOUS WASTE AND
POLLUTION CONTROL.
2. LIMITING OR
PROHIBITING THE USE OF A VACATION RENTAL FOR THE PURPOSEs OF HOUSING SEX
OFFENDERS, SELLING ILLEGAL DRUGS, LIQUOR CONTROL OR PORNOGRAPHY, OBSCENITY,
NUDE OR TOPLESS DANCING AND OTHER ADULT-ORIENTED BUSINESSES.
C. FOR the PURPOSES OF
THIS SECTION, “VACATION RENTAL” OR “SHORT-TERM RENTAL” MEANS ANY INDIVIDUALLY
OR COLLECTIVELY OWNED SINGLE-FAMILY OR ONE-TO-FOUR-FAMILY HOUSE OR DWELLING
UNIT OR ANY UNIT OR GROUP OF UNITS IN A CONDOMINIUM, COOPERATIVE OR TIMESHARE,
THAT IS ALSO A TRANSIENT PUBLIC LODGING ESTABLISHMENT.”
Page 2, line 16, strike “ARE”
insert “SHALL BE”; strike
“ONLY”; strike “AT”
Line 17, strike “ITS
SOLE DISCRETION”
Line 25, after the period insert “THE DEPARTMENT SHALL ISSUE ALL AUDIT ASSESSMENTS ON BEHALF
OF ALL TAXING JURISDICTIONS IN A SINGLE NOTICE TO THE ONLINE LODGING
MARKETPLACE. APPEALS OF AUDIT ASSESSMENTS SHALL BE DIRECTED TO THE DEPARTMENT
AND SHALL BE ADMINISTERED PURSUANT TO ARTICLE 6 OF THIS CHAPTER.”
Page 12, between lines 30 and 31 insert:
“8. “LODGING
ACCOMMODATIONS” MEANS ANY SPACE OFFERED TO THE PUBLIC FOR LODGING, INCLUDING
ANY HOTEL, MOTEL, INN, TOURIST HOME OR HOUSE, DUDE RANCH, RESORT, CAMPGROUND,
STUDIO OR BACHELOR HOTEL, LODGING HOUSE, ROOMING HOUSE, RESIDENTIAL HOME,
APARTMENT HOUSE, DORMITORY, PUbLIC OR PRIVATE CLUB, MOBILE HOME OR HOUSE
TRAILER AT A FIXED LOCATION OR OTHER SIMILAR STRUCTURe OR SPACE.”
Renumber to conform
Page 12, line 32, strike “A” insert “AN
UNAFFILIATED”
Page 13, line 7, strike “A
TRANSACTION IN WHICH THERE IS”
Page 16, between lines 5 and 6, insert:
“23. “UNAFFILIATED
THIRD PARTY” means A PERSON THAT IS NOT OWNED OR CONTROLLED, DIRECTLY OR
INDIRECTLY, BY THE SAME INTERESTS.”
Renumber to conform
Lines 12 and 19, strike “EXCEPT
AS PROVIDED BY SUBSECTION L OF THIS SECTION,”
Page 18, line 27, after the period strike the remainder of line
Strike lines 28 through 29
Page 19, between lines 12 and 13, insert:
“Sec. 7. Section 42-5009, Arizona Revised
Statutes, is amended to read:
START_STATUTE42-5009. Certificates establishing deductions; liability for making
false certificate
A. A person who conducts any business classified
under article 2 of this chapter may establish entitlement to the allowable
deductions from the tax base of that business by both:
1. Marking the invoice for the transaction to
indicate that the gross proceeds of sales or gross income derived from the
transaction was deducted from the tax base.
2. Obtaining a certificate executed by the purchaser
indicating the name and address of the purchaser, the precise nature of the
business of the purchaser, the purpose for which the purchase was made, the
necessary facts to establish the appropriate deduction and the tax license
number of the purchaser to the extent the deduction depends on the purchaser
conducting business classified under article 2 of this chapter and a
certification that the person executing the certificate is authorized to do so
on behalf of the purchaser. The certificate may be disregarded if
the seller has reason to believe that the information contained in the
certificate is not accurate or complete.
B. A person who does not comply with subsection A of
this section may establish entitlement to the deduction by presenting facts
necessary to support the entitlement, but the burden of proof is on that
person.
C. The department may prescribe a form for the
certificate described in subsection A of this section. Under such rules as it
may prescribe, the department may also describe transactions with respect to
which a person is not entitled to rely solely on the information contained in
the certificate provided for in subsection A of this section but must instead
obtain such additional information as required by the rules in order to be
entitled to the deduction.
D. If a seller is
entitled to a deduction by complying with subsection A of this section, the
department may require the purchaser that caused the execution of the
certificate to establish the accuracy and completeness of the information
required to be contained in the certificate that would entitle the seller to
the deduction. If the purchaser cannot establish the accuracy and completeness
of the information, the purchaser is liable in an amount equal to any tax,
penalty and interest that the seller would have been required to pay under this
article if the seller had not complied with subsection A of this
section. Payment of the amount under this subsection exempts the
purchaser from liability for any tax imposed under article 4 of this
chapter. The amount shall be treated as tax revenues collected from
the seller in order to designate the distribution base for purposes of section
42‑5029.
E. If a seller is entitled to a deduction by
complying with subsection B of this section, the department may require the
purchaser to establish the accuracy and completeness of the information
provided to the seller that entitled the seller to the deduction. If the
purchaser cannot establish the accuracy and completeness of the information,
the purchaser is liable in an amount equal to any tax, penalty and interest
that the seller would have been required to pay under this article if the
seller had not complied with subsection B of this section. Payment of the
amount under this subsection exempts the purchaser from liability for any tax
imposed under article 4 of this chapter. The amount shall be treated as tax
revenues collected from the seller in order to designate the distribution base
for purposes of section 42‑5029.
F. The department may prescribe a form for a
certificate used to establish entitlement to the deductions described in
section 42‑5061, subsection A, paragraph 46 and section 42‑5063,
subsection B, paragraph 3. Under rules the department may prescribe, the
department may also require additional information for the seller to be
entitled to the deduction. If a seller is entitled to the deductions
described in section 42‑5061, subsection A, paragraph 46 and section 42‑5063,
subsection B, paragraph 3, the department may require the purchaser who
executed the certificate to establish the accuracy and completeness of the
information contained in the certificate that would entitle the seller to the
deduction. If the purchaser cannot establish the accuracy and completeness of
the information, the purchaser is liable in an amount equal to any tax, penalty
and interest that the seller would have been required to pay under this
article. Payment of the amount under this subsection exempts the purchaser
from liability for any tax imposed under article 4 of this
chapter. The amount shall be treated as tax revenues collected from
the seller in order to designate the distribution base for purposes of section
42‑5029.
G. If a seller claims a deduction under section 42‑5061,
subsection A, paragraph 25 and establishes entitlement to the deduction with an
exemption letter that the purchaser received from the department and the
exemption letter was based on a contingent event, the department may require
the purchaser that received the exemption letter to establish the satisfaction
of the contingent event within a reasonable time. If the purchaser
cannot establish the satisfaction of the event, the purchaser is liable in an
amount equal to any tax, penalty and interest that the seller would have been
required to pay under this article if the seller had not been furnished the
exemption letter. Payment of the amount under this subsection
exempts the purchaser from liability for any tax imposed under article 4 of
this chapter. The amount shall be treated as tax revenues collected from the
seller in order to designate the distribution base for purposes of section 42‑5029.
For the purposes of this subsection, "reasonable time" means a time
limitation that the department determines and that does not exceed the time
limitations pursuant to section 42‑1104.
H. The department shall prescribe forms for
certificates used to establish the satisfaction of the criteria necessary to
qualify the sale of a motor vehicle for the deductions described in section 42‑5061,
subsection A, paragraph 14, paragraph 28, subdivision (a) and paragraph 44 and
subsection U. Except as provided in subsection J of this section, to
establish entitlement to these deductions, a motor vehicle dealer shall retain:
1. A valid certificate as prescribed by this
subsection completed by the purchaser and obtained prior to the issuance of the
nonresident registration permit authorized by section 28‑2154.
2. A copy of the nonresident registration permit
authorized by section 28‑2154.
3. A legible copy of a current valid driver license
issued to the purchaser by another state or foreign country that indicates an
address outside of this state. For the sale of a motor vehicle to a
nonresident entity, the entity's representative must have a current valid
driver license issued by the same jurisdiction as that in which the entity is
located.
4. For the purposes of the deduction provided by
section 42‑5061, subsection A, paragraph 14, a certificate documenting
the delivery of the motor vehicle to an out‑of‑state location.
I. Notwithstanding subsection A, paragraph 2 of this
section, if a motor vehicle dealer has established entitlement to a deduction
by complying with subsection H of this section, the department may require the
purchaser who executed the certificate to establish the accuracy and
completeness of the information contained in the certificate that entitled the
motor vehicle dealer to the deduction. If the purchaser cannot establish the
accuracy and completeness of the information, the purchaser is liable in an
amount equal to any tax, penalty and interest that the motor vehicle dealer
would have been required to pay under this article and under articles IV and V
of the model city tax code as defined in section 42‑6051. Payment of the
amount under this subsection exempts the purchaser from liability for any tax
imposed under article 4 of this chapter and any tax imposed under article VI of
the model city tax code as defined in section 42‑6051. The amount shall
be treated as tax revenues collected from the motor vehicle dealer in order to
designate the distribution base for purposes of section 42‑5029.
J. To establish entitlement to the deduction
described in section 42‑5061, subsection A, paragraph 44, a public
consignment auction dealer as defined in section 28‑4301 shall submit the
valid certificate prescribed by subsection H of this section to the department
and retain a copy for its records.
K. Notwithstanding any other law, compliance with
subsection H of this section by a motor vehicle dealer entitles the motor
vehicle dealer to the exemption provided in section 42‑6004, subsection
A, paragraph 4.
L. The department shall prescribe a form for a
certificate to be used by a person that is not subject to tax under section 42‑5075
when the person is engaged by a contractor that is subject to tax under section
42-5075 for a project that is taxable under section 42-5075. The
certificate permits the person purchasing tangible personal property to be
incorporated or fabricated by the person into any real property, structure,
project, development or improvement to provide documentation to a retailer that
the sale of tangible personal property qualifies for the deduction under
section 42‑5061, subsection A, paragraph 27, subdivision
(b). A prime contractor shall obtain the certificate from the
department and shall provide a copy to any such person working on the project.
The prime contractor shall obtain a new certificate for each project to which
this subsection applies. For the purposes of this subsection, the
following apply:
1. The person that is not subject to tax under
section 42‑5075 may use the certificate issued pursuant to this
subsection only with respect to tangible personal property that will be
incorporated into a project for which the gross receipts are subject to tax
under section 42‑5075.
2. The department shall issue the certificate to the
prime contractor on receiving sufficient documentation to establish that the
prime contractor meets the requirements of this subsection.
3. If any person uses the certificate provided under
this subsection to purchase tangible personal property to be used in a project
that is not subject to tax under section 42‑5075, the person is liable in
an amount equal to any tax, penalty and interest that the seller would have
been required to pay under this article if the seller had not complied with
subsection A of this section. Payment of the amount under this section exempts
the person from liability for any tax imposed under article 4 of this chapter.
The amount shall be sourced under section 42‑5040, subsection A,
paragraph 2.
M. Notwithstanding any other law, compliance with
subsection L of this section by a person that is not subject to tax under
section 42‑5075 entitles the person to the exemption allowed by section
465, subsection (k) of the model city tax code when purchasing tangible
personal property to be incorporated or fabricated by the person into any real
property, structure, project, development or improvement. END_STATUTE
n. Notwithstanding any
other law, an online lodging operator shall be entitled to an exclusion from
any applicable taxes for any online lodging transaction facilitated by AN
ONLINE LODGING MARKETPLACE for which the online lodging operator has obtained
from the Online lodging marketplace WRITTEN NOTICE THAT THE ONLINE LODGING
MARKETPLACE IS REGISTERED WITH THE DEPARTMENT to COLLECT APPLICABLE TAXES FOR
ALL ONLINE LODGING TRANSACTIONS FACILITATED BY THE ONLINE LODGING MARKETPLACE,
AND transaction history documenting TAX COLLECTED by the Online lodging
marketplace.”
Renumber to conform
Page 22, line 3, strike “IS”
insert “SHALL”; after “NOT” insert “BE”
Page 23, strike lines 20 through 32
Strike pages 24 through 27
Page 28, strike lines 1 through 8
Renumber to conform
Page 29, line 5, strike “except that the”
Lines 6 and 7, strike “tax
base does not include BUT
THE FOLLOWING SHALL BE DEDUCTED FROM THE TAX BASE” insert “except
that the tax base does not include”
Line 15, strike “TRANSACTION
OR”
Line 16, strike “WRITTEN
NOTICE OR”
Line 17, after “MARKETPLACE”
insert “PURSUANT TO SECTION 42-5009,
SUBSECTION N, THAT THE ONLINE,”; strike “IT” insert “THE ONLINE LODGING MARKETPLACE”
Line 18, strike “WITH
RESPECT TO THOSE TRANSACTIONS”
Page 30, line 20, strike “CONSISTENT” insert “UNIFORM”
Page 31, line 27, strike “ONLINE LODGING”
Strike lines 28 and 29, insert “LEASE OR RENT TO LODGERS.”
Page 33, strike line 30
Line 31, strike “OTHERWISE
QUALIFY UNDER PARAGRAPH 1 OF THIS SUBSECTION” insert “RESIDENTIAL PURPOSES, THAT ARE LEASED OR
RENTED TO LODGERS,”END_STATUTE
Amend title to conform
Bill
Number: S.B. 1350