Arizona Revised Statutes § 42-6002 Administration; Procedures For Levy, Collection And Enforcement Applicable To Cities And Towns

42-6002. Administration; procedures for levy, collection and enforcement applicable to cities and towns

A. Unless the context otherwise requires, chapter 1 and chapter 5, article 1 of this title govern the administration of the municipal privilege taxes levied by a city or town.

B. The procedures for levy, collection and enforcement of payment of transaction privilege and affiliated excise taxes, including use tax, severance tax, jet fuel excise and use tax, and rental occupancy tax, levied by a city or town shall be in the same manner as authorized by chapter 5 of this title. This subsection does not preclude a city or town from levying a transaction privilege, sales, use or other similar tax as a result of a person's business activities as provided in articles 1 and 2 of this chapter.

C. An intergovernmental contract or agreement entered into pursuant to section 42-6001, subsection A shall include the following provisions:

1. All audits shall be conducted in accordance with standard audit procedures defined in the department of revenue audit manual.

2. All auditors shall be trained in accordance with the policies of the department.

3. An auditor that is trained and authorized to conduct an audit may not represent any taxpayer in any tax matter.

4. Except as provided in paragraph 5 of this subsection, the audit of a taxpayer that has locations in two or more cities or towns shall be conducted by the department.

5. All audits shall include all taxing jurisdictions in this state regardless of which jurisdiction conducts the audit. A city or town may conduct an audit of any taxpayer that is engaged in business in only one city or town and any other taxpayer authorized by the department.

6. The department shall issue all audit assessments on behalf of all taxing jurisdictions in a single notice to the taxpayer.

7. Appeals of audit assessments shall be directed to the department.

8. Appeals of audit assessments shall be administered pursuant to chapter 1, article 6 of this title.

9. The department shall notify all affected cities and towns before entering into any compromise, closing, settlement or other agreement with a person related to the tax levied and imposed by the cities and towns.

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Last modified: October 13, 2016