| 65 | | - | Be it enacted by the Legislature of the State of Arizona: Section 1. Section 10-122, Arizona Revised Statutes, is amended to read: START_STATUTE10-122. Filing, service and copying fees; expedited report filing and access; same day and next day services; posted wait times; advance monies; exception; definition A. The commission shall collect and deposit, pursuant to sections 35-146 and 35-147, the following nonrefundable fees when the documents described in this subsection are delivered to the commission: Document Fee 1. Articles of incorporation $50 2. Application for use of indistinguishable name 10 3. Application for reserved name 10 4. Notice of transfer of reserved name 10 5. Application for registered name 10 6. Application for renewal of registered name 10 7. Agent's statement of resignation 10 8. Amendment of articles of incorporation 25 9. Restatement of articles of incorporation with amendment of articles 25 10. Statement of merger, interest exchange, conversion, domestication or division if the entity responsible for filing the statement is a corporation 100 11. Articles of dissolution 25 12. Articles of revocation of dissolution 25 13. Application for reinstatement following administrative dissolution, in addition to other fees and penalties due 100 14. Application for authority 150 15. Application for withdrawal 25 16. Annual report 45 17. Articles of correction 25 18. Application for certificate of good standing 10 19. Any other document required or permitted to be filed by chapters 1 through 17 of this title 25 B. The commission shall collect a nonrefundable fee of twenty-five dollars $25 each time process is served on it under chapters 1 through 17 of this title. The party to a proceeding causing service of process is entitled to recover this fee as costs if the party prevails in the proceeding. C. The commission shall charge and collect a reasonable fee for copying documents on request, provided the fee does not exceed the cost of providing the service as determined by the commission. The commission shall also charge a reasonable fee for certifying the copy of a filed document, provided the fee does not exceed the cost of providing the service as determined by the commission. D. A penalty of one hundred dollars $100 is payable in addition to other fees accrues and is payable if a foreign corporation fails to file an amendment, restated articles that include an amendment, or articles of merger within sixty days after the time of filing in the jurisdiction in which the corporation is domiciled. The penalty collected pursuant to this subsection shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund. E. One-third of the fees for the annual report of domestic and foreign corporations paid pursuant to subsection A, paragraph 16 of this section shall be deposited in the Arizona arts trust fund established by section 41-983.01 and two-thirds of these fees shall be deposited, pursuant to sections 35-146 and 35-147, in the public access fund established by section 10-122.01. F. The commission shall provide for and establish an expedited service for the filing of all documents and services provided pursuant to this title as follows: 1. The expedited filing shall be a priority service to be completed as soon as possible after the documents are delivered to the commission. 2. In addition to any other fees required by this section or any other law, the commission shall charge a nonrefundable fee for expedited services, including those requested by fax. The fee shall be determined by a supermajority vote of the commissioners. 3. The commission may provide for and establish same day and next day services for the filing of any documents and services provided pursuant to this title as follows: (a) The commission shall suspend same day or next day service if the commission determines that it does not have the necessary resources to perform the service within the established time period. (b) In addition to any other fees required by this section or any other law, the commissioners may charge a nonrefundable fee for the same day or next day service or both. The fee shall be determined by a supermajority vote of the commissioners. 4. The commission shall publicly post the current wait times for processing regular, expedited and same day and next day services. G. The commission may charge persons who access the commission's data processing system that is maintained pursuant to section 10-122.01 from remote locations and persons requesting special computer generated printouts, reports and tapes a reasonable fee that does not exceed the cost of the time, equipment and personnel necessary to provide this service or product as determined by the commission. H. Except as provided in section 10-122.01, subsection B, paragraph 3, in addition to any fee charged pursuant to this section, the commission may charge and collect the following nonrefundable fees to help defray the cost of the improved data processing system that is maintained pursuant to section 10-122.01: 1. Filing articles of incorporation of a domestic corporation, ten dollars $10. 2. Filing an application of a foreign corporation for authority to transact business in this state, twenty-five dollars $25. I. All monies received pursuant to subsections F, G and H of this section shall be deposited, pursuant to sections 35-146 and 35-147, in the public access fund established by section 10-122.01. J. Fees charged pursuant to this section are exempt from section 39-121.03, subsection A, paragraph 3. K. The commission may allow any person to advance monies to the commission to pay fees required pursuant to this section for future filings and services. All monies received pursuant to this subsection shall be deposited, pursuant to sections 35-146 and 35-147, in the money on deposit account in the public access fund established by section 10-122.01. L. In addition to any other fees prescribed by law, the commission may establish a fee for the filing of an annual benefit report delivered to the commission pursuant to section 10-2442. The fee shall be determined by a majority vote of the commissioners. M. A person who is establishing a new business as defined in section 41-710.02 is exempt from the filing fees required by this section. M. N. For the purposes of this section, "supermajority" means an affirmative vote of at least four commissioners. END_STATUTE Sec. 2. Section 41-126, Arizona Revised Statutes, is amended to read: START_STATUTE41-126. Fees; expedited services; exemption A. The secretary of state shall receive the following fees: 1. Making a copy of any document on file in his the secretary of state's office, no not more than ten cents $.10 for each page or partial page. 2. Filing and recording each application to become a notary public and transmitting a commission for a notary public, no not more than twenty-five dollars $25. 3. Filing an application for registration or renewal of the registration of a trademark or recording an assignment of a trademark, fifteen dollars $15. 4. Filing an application for registration or renewal of the registration of a trade name or recording an assignment of a trade name, no not more than ten dollars $10. 5. Issuing a certificate of registration of a trademark or a trade name, no not more than three dollars $3. 6. Filing, as required by the uniform commercial code: (a) A financing statement, no not more than three dollars $3. (b) An amendment to a financing statement, no not more than three dollars $3. (c) An assignment, no not more than three dollars $3. (d) A continuation statement, no not more than three dollars $3. (e) A statement of release, no not more than two dollars $2. (f) A termination statement, no not more than two dollars $2. 7. Issuing a certificate as provided in section 44-3146 naming a particular debtor, no not more than six dollars $6. 8. Making a copy of a filed financing statement, no not more than fifty cents $.50 per page. 9. Certifying a copy of a writing specified in paragraphs 6, 7 and 8 of this subsection, no not more than three dollars $3. 10. Filing, recording or certifying any other document not specified in this section, no not more than three dollars $3. 11. Filing the oath and bond of notary public, eighteen dollars $18. 12. Issuing a certificate as to official capacity of a notary public and affixing a seal to the certificate, eighteen dollars $18. B. The secretary of state shall provide for and establish an expedited service for the processing of requests, applications, filings and searches as follows: 1. The expedited processing shall be a priority effected in a fast and efficient manner. 2. A fee shall be charged for expedited services. This fee shall not exceed twenty-five dollars $25 per service and shall be is in addition to any other fees provided by law, including those set forth in subsection A of this section. C. The secretary of state shall adopt rules necessary to carry out subsection B of this section. D. A new business as defined in section 41-710.02 or a person who is establishing a new business as defined in section 41-710.02 is exempt from the fees required by this section. END_STATUTE Sec. 3. Title 41, chapter 4, article 1, Arizona Revised Statutes, is amended by adding section 41-710.02, to read: START_STATUTE41-710.02. New businesses; state contracts; fee waivers; report; definition A. Beginning January 1, 2024, the department shall do the following: 1. Be encouraged to award five percent of the total number of state contracts entered into each year to new businesses. For the purposes of this paragraph, the department shall evaluate lowering barriers for new businesses to compete for state contracts through methods such as reducing the time for approving a contract, reducing the time for payment of services rendered in a contract, marketing and outreach to new businesses, prioritizing innovation as a selection factor, measuring past PERFORMANCE based on non-state customers and training and educating new businesses. This paragraph does not require the department to award five percent of the total number of state contracts entered into each year to new businesses. 2. submit a report ON OR BEFORE dECEMBER 31 OF EACH YEAR to the governor, the president of the senate and the speaker of the house of representatives on the following information: (a) The total number of state contracts awarded in the prior year and the number of contracts awarded to new businesses. (b) The total dollar amount of all contracts awarded in the prior year and the dollar amount of all contracts awarded to new businesses. (c) Any actions taken to reduce barriers for new businesses to compete for state contracts. (d) Any recommendations to improve access to state contracts for new businesses. 3. Provide a copy of the report required by paragraph 2 of this subsection to the secretary of state and post the INFORMATION on the department's public website. B. For the purposes of this section, "new business": 1. Means a business entity that has been in operation for less than five years and whose principal place of business is located in this state. 2. Does not include any business entity that dissolves or otherwise terminates business operations and that reincorporates or otherwise reinitiates business operations in this state on or after the effective date of this section. END_STATUTE Sec. 4. Section 42-5005, Arizona Revised Statutes, is amended to read: START_STATUTE42-5005. Transaction privilege tax and municipal privilege tax licenses; fees; renewal; revocation; violation; classification A. Every person who receives gross proceeds of sales or gross income on which a transaction privilege tax is imposed by this article and who desires to engage or continue in business shall apply to the department for an annual transaction privilege tax license accompanied by a fee of $12. A person shall not engage or continue in business until the person has obtained a transaction privilege tax license. A new business as defined in section 41-710.02 or a person who is establishing a new business as defined in section 41-710.02 is exempt from the fee required by this subsection. B. A person desiring to engage or continue in business within a city or town that imposes a municipal privilege tax shall apply to the department of revenue for an annual municipal privilege tax license accompanied by a fee of up to $50, as established by ordinance of the city or town. The person shall submit the fee with each new license application. The person may not engage or continue in business until the person has obtained a municipal privilege tax license. The department must collect, hold, pay and manage the fees in trust for the city or town and may not use the monies for any other purposes. The fee imposed by this subsection does not apply to a marketplace facilitator or remote seller that is only required to obtain a transaction privilege tax license pursuant to section 42-5043. C. A transaction privilege tax license is valid only for the calendar year in which it is issued, but it may be renewed for the following calendar year. There is no fee for the renewal of the transaction privilege tax license. The transaction privilege tax license must be renewed at the same time and in the manner as the municipal privilege tax license renewal. D. A municipal privilege tax license is valid only for the calendar year in which it is issued, but it may be renewed for the following calendar year by the payment of a license renewal fee of up to $50. The renewal fee is due and payable on January 1 and is considered delinquent if not received on or before the last business day of January. The department must collect, hold, pay and manage the fees in trust for the city or town and may not use the monies for any other purposes. The renewal fee imposed by this subsection does not apply to a marketplace facilitator or remote seller that is only required to obtain a transaction privilege tax license pursuant to section 42-5043. E. A licensee that remains in business after the municipal privilege tax license has expired is subject to the payment of the license renewal fee and the civil penalty prescribed in section 42-1125, subsection R. F. If the applicant is not in arrears in payment of any tax imposed by this article, the department shall issue a license authorizing the applicant to engage and continue in business on the condition that the applicant complies with this article. The license number shall be continuous. G. The transaction privilege tax license and the municipal privilege tax license are not transferable on a complete change of ownership or change of location of the business. For the purposes of this subsection: 1. "Location" means the business address appearing in the application for the license and on the transaction privilege tax or municipal privilege tax license. 2. "Ownership" means any right, title or interest in the business. 3. "Transferable" means the ability to convey or change the right or privilege to engage or continue in business by virtue of the issuance of the transaction privilege tax or municipal privilege tax license. H. When the ownership or location of a business on which a transaction privilege tax or municipal privilege tax is imposed has been changed within the meaning of subsection G of this section, the licensee shall surrender the license to the department. The license shall be reissued to the new owners or for the new location on application by the taxpayer and payment of the $12 fee for a transaction privilege tax license and a fee of up to $50 per jurisdiction for a municipal privilege tax license. The department must collect, hold, pay and manage the fees in trust for the city or town and may not use the monies for any other purposes. I. A person who is engaged in or conducting a business in two or more locations or under two or more business names shall procure a transaction privilege tax license for each location or business name regardless of whether all locations or business names are reported on a consolidated return under a single transaction privilege tax license number. This requirement shall not be construed as conflicting with section 42-5020. J. A person who is engaged in or conducting a business in two or more locations or under two or more business names shall procure a municipal privilege tax license for each location or business name regardless of whether all locations or business names are reported on a consolidated return. K. A person who is engaged in or conducting business at two or more locations or under two or more business names and who files a consolidated return under a single transaction privilege tax license number as provided by section 42-5020 is required to pay only a single municipal privilege tax license renewal fee for each local jurisdiction pursuant to subsection D of this section. A person who is engaged in or conducting business at two or more locations or under two or more business names and who does not file a consolidated return under a single license number is required to pay a license renewal fee for each location or license in a local jurisdiction. L. For the purposes of this chapter and chapter 6 of this title: 1. Through December 31, 2018, an online lodging marketplace, as defined in section 42-5076, may register with the department for a license for the payment of taxes levied by this state and one or more counties, cities, towns or special taxing districts, at the election of the online lodging marketplace, for taxes due from an online lodging operator on any online lodging transaction facilitated by the online lodging marketplace, subject to sections 42-5076 and 42-6009. 2. Beginning from and after December 31, 2018, an online lodging marketplace, as defined in section 42-5076, shall register with the department for a license for the payment of taxes levied by this state and one or more counties, cities, towns or special taxing districts for taxes due from an online lodging operator on any online lodging transaction facilitated by the online lodging marketplace, subject to sections 42-5076 and 42-6009. M. For the purposes of this chapter and chapter 6 of this title, a person who is licensed pursuant to title 32, chapter 20 and who files an electronic consolidated tax return for individual real properties under management on behalf of the property owners may be licensed with the department for the payment of taxes levied by this state and by any county, city or town with respect to those properties. There is no fee for a license issued pursuant to this subsection. N. For the purposes of this chapter, a peer-to-peer car sharing program shall register with the department for a license for the payment of taxes levied by this state and one or more counties, cities, towns or special districts for taxes due from a shared vehicle owner on any shared vehicle transaction facilitated by the peer-to-peer car sharing program, subject to the limitations in section 28-9616. A peer-to-peer car sharing program shall remit the surcharges established pursuant to sections 5-839 and 48-4234 only if the peer-to-peer car sharing program allows shared vehicle transactions that involve a vehicle for which the shared vehicle owner has not certified to the department pursuant to section 28-9616, subsection C that it is an individual-owned shared vehicle. For the purposes of this subsection, "individual-owned shared vehicle", "peer-to-peer car sharing program", "shared vehicle owner" and "shared vehicle transaction" have the same meanings prescribed in section 28-9601. O. If a person violates this article or any rule adopted under this article, the department upon hearing may revoke any transaction privilege tax or municipal privilege tax license issued to the person. The department shall provide ten days' written notice of the hearing, stating the time and place and requiring the person to appear and show cause why the license or licenses should not be revoked. The department shall provide written notice to the person of the revocation of the license. The notices may be served personally or by mail pursuant to section 42-5037. After revocation, the department shall not issue a new license to the person unless the person presents evidence satisfactory to the department that the person will comply with this article and with the rules adopted under this article. The department may prescribe the terms under which a revoked license may be reissued. P. The department may revoke any transaction privilege tax or municipal privilege tax license issued to any person who fails for thirteen consecutive months to make and file a return required by this article on or before the due date or the due date as extended by the department unless the failure is due to a reasonable cause and not due to wilful neglect. Q. A person who violates any provision of this section is guilty of a class 3 misdemeanor. END_STATUTE |
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| 65 | + | Be it enacted by the Legislature of the State of Arizona: Section 1. Section 10-122, Arizona Revised Statutes, is amended to read: START_STATUTE10-122. Filing, service and copying fees; expedited report filing and access; same day and next day services; posted wait times; advance monies; exception; definition A. The commission shall collect and deposit, pursuant to sections 35-146 and 35-147, the following nonrefundable fees when the documents described in this subsection are delivered to the commission: Document Fee 1. Articles of incorporation $50 2. Application for use of indistinguishable name 10 3. Application for reserved name 10 4. Notice of transfer of reserved name 10 5. Application for registered name 10 6. Application for renewal of registered name 10 7. Agent's statement of resignation 10 8. Amendment of articles of incorporation 25 9. Restatement of articles of incorporation with amendment of articles 25 10. Statement of merger, interest exchange, conversion, domestication or division if the entity responsible for filing the statement is a corporation 100 11. Articles of dissolution 25 12. Articles of revocation of dissolution 25 13. Application for reinstatement following administrative dissolution, in addition to other fees and penalties due 100 14. Application for authority 150 15. Application for withdrawal 25 16. Annual report 45 17. Articles of correction 25 18. Application for certificate of good standing 10 19. Any other document required or permitted to be filed by chapters 1 through 17 of this title 25 B. The commission shall collect a nonrefundable fee of twenty-five dollars $25 each time process is served on it under chapters 1 through 17 of this title. The party to a proceeding causing service of process is entitled to recover this fee as costs if the party prevails in the proceeding. C. The commission shall charge and collect a reasonable fee for copying documents on request, provided the fee does not exceed the cost of providing the service as determined by the commission. The commission shall also charge a reasonable fee for certifying the copy of a filed document, provided the fee does not exceed the cost of providing the service as determined by the commission. D. A penalty of one hundred dollars $100 is payable in addition to other fees accrues and is payable if a foreign corporation fails to file an amendment, restated articles that include an amendment, or articles of merger within sixty days after the time of filing in the jurisdiction in which the corporation is domiciled. The penalty collected pursuant to this subsection shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund. E. One-third of the fees for the annual report of domestic and foreign corporations paid pursuant to subsection A, paragraph 16 of this section shall be deposited in the Arizona arts trust fund established by section 41-983.01 and two-thirds of these fees shall be deposited, pursuant to sections 35-146 and 35-147, in the public access fund established by section 10-122.01. F. The commission shall provide for and establish an expedited service for the filing of all documents and services provided pursuant to this title as follows: 1. The expedited filing shall be a priority service to be completed as soon as possible after the documents are delivered to the commission. 2. In addition to any other fees required by this section or any other law, the commission shall charge a nonrefundable fee for expedited services, including those requested by fax. The fee shall be determined by a supermajority vote of the commissioners. 3. The commission may provide for and establish same day and next day services for the filing of any documents and services provided pursuant to this title as follows: (a) The commission shall suspend same day or next day service if the commission determines that it does not have the necessary resources to perform the service within the established time period. (b) In addition to any other fees required by this section or any other law, the commissioners may charge a nonrefundable fee for the same day or next day service or both. The fee shall be determined by a supermajority vote of the commissioners. 4. The commission shall publicly post the current wait times for processing regular, expedited and same day and next day services. G. The commission may charge persons who access the commission's data processing system that is maintained pursuant to section 10-122.01 from remote locations and persons requesting special computer generated printouts, reports and tapes a reasonable fee that does not exceed the cost of the time, equipment and personnel necessary to provide this service or product as determined by the commission. H. Except as provided in section 10-122.01, subsection B, paragraph 3, in addition to any fee charged pursuant to this section, the commission may charge and collect the following nonrefundable fees to help defray the cost of the improved data processing system that is maintained pursuant to section 10-122.01: 1. Filing articles of incorporation of a domestic corporation, ten dollars $10. 2. Filing an application of a foreign corporation for authority to transact business in this state, twenty-five dollars $25. I. All monies received pursuant to subsections F, G and H of this section shall be deposited, pursuant to sections 35-146 and 35-147, in the public access fund established by section 10-122.01. J. Fees charged pursuant to this section are exempt from section 39-121.03, subsection A, paragraph 3. K. The commission may allow any person to advance monies to the commission to pay fees required pursuant to this section for future filings and services. All monies received pursuant to this subsection shall be deposited, pursuant to sections 35-146 and 35-147, in the money on deposit account in the public access fund established by section 10-122.01. L. In addition to any other fees prescribed by law, the commission may establish a fee for the filing of an annual benefit report delivered to the commission pursuant to section 10-2442. The fee shall be determined by a majority vote of the commissioners. M. A person who is establishing a new business as defined in section 41-710.02 is exempt from the filing fees required by this section. M. N. For the purposes of this section, "supermajority" means an affirmative vote of at least four commissioners. END_STATUTE Sec. 2. Section 41-126, Arizona Revised Statutes, is amended to read: START_STATUTE41-126. Fees; expedited services; exemption A. The secretary of state shall receive the following fees: 1. Making a copy of any document on file in his the secretary of state's office, no not more than ten cents $.10 for each page or partial page. 2. Filing and recording each application to become a notary public and transmitting a commission for a notary public, no not more than twenty-five dollars $25. 3. Filing an application for registration or renewal of the registration of a trademark or recording an assignment of a trademark, fifteen dollars $15. 4. Filing an application for registration or renewal of the registration of a trade name or recording an assignment of a trade name, no not more than ten dollars $10. 5. Issuing a certificate of registration of a trademark or a trade name, no not more than three dollars $3. 6. Filing, as required by the uniform commercial code: (a) A financing statement, no not more than three dollars $3. (b) An amendment to a financing statement, no not more than three dollars $3. (c) An assignment, no not more than three dollars $3. (d) A continuation statement, no not more than three dollars $3. (e) A statement of release, no not more than two dollars $2. (f) A termination statement, no not more than two dollars $2. 7. Issuing a certificate as provided in section 44-3146 naming a particular debtor, no not more than six dollars $6. 8. Making a copy of a filed financing statement, no not more than fifty cents $.50 per page. 9. Certifying a copy of a writing specified in paragraphs 6, 7 and 8 of this subsection, no not more than three dollars $3. 10. Filing, recording or certifying any other document not specified in this section, no not more than three dollars $3. 11. Filing the oath and bond of notary public, eighteen dollars $18. 12. Issuing a certificate as to official capacity of a notary public and affixing a seal to the certificate, eighteen dollars $18. B. The secretary of state shall provide for and establish an expedited service for the processing of requests, applications, filings and searches as follows: 1. The expedited processing shall be a priority effected in a fast and efficient manner. 2. A fee shall be charged for expedited services. This fee shall not exceed twenty-five dollars $25 per service and shall be is in addition to any other fees provided by law, including those set forth in subsection A of this section. C. The secretary of state shall adopt rules necessary to carry out subsection B of this section. D. A new business as defined in section 41-710.02 or a person who is establishing a new business as defined in section 41-710.02 is exempt from the fees required by this section. END_STATUTE Sec. 3. Title 41, chapter 4, article 1, Arizona Revised Statutes, is amended by adding section 41-710.02, to read: START_STATUTE41-710.02. New businesses; state contracts; fee waivers; report; definition A. Beginning January 1, 2024, the department shall do the following: 1. Be encouraged to award five percent of the total number of state contracts entered into each year to new businesses. For the purposes of this paragraph, the department shall evaluate lowering barriers for new businesses to compete for state contracts through methods such as reducing the time for approving a contract, reducing the time for payment of services rendered in a contract, marketing and outreach to new businesses, prioritizing innovation as a selection factor, measuring past PERFORMANCE based on non-state customers and training and educating new businesses. This paragraph does not require the department to award five percent of the total number of state contracts entered into each year to new businesses. 2. submit a report ON OR BEFORE dECEMBER 31 OF EACH YEAR to the governor, the president of the senate and the speaker of the house of representatives on the following information: (a) The total number of state contracts awarded in the prior year and the number of contracts awarded to new businesses. (b) The total dollar amount of all contracts awarded in the prior year and the dollar amount of all contracts awarded to new businesses. (c) Any actions taken to reduce barriers for new businesses to compete for state contracts. (d) Any recommendations to improve access to state contracts for new businesses. 3. Provide a copy of the report required by paragraph 2 of this subsection to the secretary of state and post the INFORMATION on the department's public website. B. For the purposes of this section, "new business": 1. Means a business entity that has been in operation for less than five years and whose principal place of business is located in this state. 2. Does not include any business entity that dissolves or otherwise terminates business operations and that reincorporates or otherwise reinitiates business operations in this state on or after the effective date of this section. END_STATUTE Sec. 4. Section 42-5005, Arizona Revised Statutes, is amended to read: START_STATUTE42-5005. Transaction privilege tax and municipal privilege tax licenses; fees; renewal; revocation; violation; classification A. Every person who receives gross proceeds of sales or gross income on which a transaction privilege tax is imposed by this article and who desires to engage or continue in business shall apply to the department for an annual transaction privilege tax license accompanied by a fee of $12. A person shall not engage or continue in business until the person has obtained a transaction privilege tax license. A new business as defined in section 41-710.02 or a person who is establishing a new business as defined in section 41-710.02 is exempt from the fee required by this subsection. B. A person desiring to engage or continue in business within a city or town that imposes a municipal privilege tax shall apply to the department of revenue for an annual municipal privilege tax license accompanied by a fee of up to $50, as established by ordinance of the city or town. The person shall submit the fee with each new license application. The person may not engage or continue in business until the person has obtained a municipal privilege tax license. The department must collect, hold, pay and manage the fees in trust for the city or town and may not use the monies for any other purposes. The fee imposed by this subsection does not apply to a marketplace facilitator or remote seller that is only required to obtain a transaction privilege tax license pursuant to section 42-5043. C. A transaction privilege tax license is valid only for the calendar year in which it is issued, but it may be renewed for the following calendar year. There is no fee for the renewal of the transaction privilege tax license. The transaction privilege tax license must be renewed at the same time and in the manner as the municipal privilege tax license renewal. D. A municipal privilege tax license is valid only for the calendar year in which it is issued, but it may be renewed for the following calendar year by the payment of a license renewal fee of up to $50. The renewal fee is due and payable on January 1 and is considered delinquent if not received on or before the last business day of January. The department must collect, hold, pay and manage the fees in trust for the city or town and may not use the monies for any other purposes. The renewal fee imposed by this subsection does not apply to a marketplace facilitator or remote seller that is only required to obtain a transaction privilege tax license pursuant to section 42-5043. E. A licensee that remains in business after the municipal privilege tax license has expired is subject to the payment of the license renewal fee and the civil penalty prescribed in section 42-1125, subsection R. F. If the applicant is not in arrears in payment of any tax imposed by this article, the department shall issue a license authorizing the applicant to engage and continue in business on the condition that the applicant complies with this article. The license number shall be continuous. G. The transaction privilege tax license and the municipal privilege tax license are not transferable on a complete change of ownership or change of location of the business. For the purposes of this subsection: 1. "Location" means the business address appearing in the application for the license and on the transaction privilege tax or municipal privilege tax license. 2. "Ownership" means any right, title or interest in the business. 3. "Transferable" means the ability to convey or change the right or privilege to engage or continue in business by virtue of the issuance of the transaction privilege tax or municipal privilege tax license. H. When the ownership or location of a business on which a transaction privilege tax or municipal privilege tax is imposed has been changed within the meaning of subsection G of this section, the licensee shall surrender the license to the department. The license shall be reissued to the new owners or for the new location on application by the taxpayer and payment of the $12 fee for a transaction privilege tax license and a fee of up to $50 per jurisdiction for a municipal privilege tax license. The department must collect, hold, pay and manage the fees in trust for the city or town and may not use the monies for any other purposes. I. A person who is engaged in or conducting a business in two or more locations or under two or more business names shall procure a transaction privilege tax license for each location or business name regardless of whether all locations or business names are reported on a consolidated return under a single transaction privilege tax license number. This requirement shall not be construed as conflicting with section 42-5020. J. A person who is engaged in or conducting a business in two or more locations or under two or more business names shall procure a municipal privilege tax license for each location or business name regardless of whether all locations or business names are reported on a consolidated return. K. A person who is engaged in or conducting business at two or more locations or under two or more business names and who files a consolidated return under a single transaction privilege tax license number as provided by section 42-5020 is required to pay only a single municipal privilege tax license renewal fee for each local jurisdiction pursuant to subsection D of this section. A person who is engaged in or conducting business at two or more locations or under two or more business names and who does not file a consolidated return under a single license number is required to pay a license renewal fee for each location or license in a local jurisdiction. L. For the purposes of this chapter and chapter 6 of this title: 1. Through December 31, 2018, an online lodging marketplace, as defined in section 42-5076, may register with the department for a license for the payment of taxes levied by this state and one or more counties, cities, towns or special taxing districts, at the election of the online lodging marketplace, for taxes due from an online lodging operator on any online lodging transaction facilitated by the online lodging marketplace, subject to sections 42-5076 and 42-6009. 2. Beginning from and after December 31, 2018, an online lodging marketplace, as defined in section 42-5076, shall register with the department for a license for the payment of taxes levied by this state and one or more counties, cities, towns or special taxing districts for taxes due from an online lodging operator on any online lodging transaction facilitated by the online lodging marketplace, subject to sections 42-5076 and 42-6009. M. For the purposes of this chapter and chapter 6 of this title, a person who is licensed pursuant to title 32, chapter 20 and who files an electronic consolidated tax return for individual real properties under management on behalf of the property owners may be licensed with the department for the payment of taxes levied by this state and by any county, city or town with respect to those properties. There is no fee for a license issued pursuant to this subsection. N. For the purposes of this chapter, a peer-to-peer car sharing program shall register with the department for a license for the payment of taxes levied by this state and one or more counties, cities, towns or special districts for taxes due from a shared vehicle owner on any shared vehicle transaction facilitated by the peer-to-peer car sharing program, subject to the limitations in section 28-9616. A peer-to-peer car sharing program shall remit the surcharges established pursuant to sections 5-839 and 48-4234 only if the peer-to-peer car sharing program allows shared vehicle transactions that involve a vehicle for which the shared vehicle owner has not certified to the department pursuant to section 28-9616, subsection C that it is an individual-owned shared vehicle. For the purposes of this subsection, "individual-owned shared vehicle", "peer-to-peer car sharing program", "shared vehicle owner" and "shared vehicle transaction" have the same meanings prescribed in section 28-9601. O. If a person violates this article or any rule adopted under this article, the department upon hearing may revoke any transaction privilege tax or municipal privilege tax license issued to the person. The department shall provide ten days' written notice of the hearing, stating the time and place and requiring the person to appear and show cause why the license or licenses should not be revoked. The department shall provide written notice to the person of the revocation of the license. The notices may be served personally or by mail pursuant to section 42-5037. After revocation, the department shall not issue a new license to the person unless the person presents evidence satisfactory to the department that the person will comply with this article and with the rules adopted under this article. The department may prescribe the terms under which a revoked license may be reissued. P. The department may revoke any transaction privilege tax or municipal privilege tax license issued to any person who fails for thirteen consecutive months to make and file a return required by this article on or before the due date or the due date as extended by the department unless the failure is due to a reasonable cause and not due to wilful neglect. Q. A person who violates any provision of this section is guilty of a class 3 misdemeanor.END_STATUTE Sec. 5. Section 43-1022, Arizona Revised Statutes, is amended to read: START_STATUTE43-1022. Subtractions from Arizona gross income In computing Arizona adjusted gross income, the following amounts shall be subtracted from Arizona gross income: 1. The amount of exemptions allowed by section 43-1023. 2. Benefits, annuities and pensions in an amount totaling not more than $2,500 received from one or more of the following: (a) The United States government service retirement and disability fund, the United States foreign service retirement and disability system and any other retirement system or plan established by federal law, except retired or retainer pay of the uniformed services of the United States that qualifies for a subtraction under paragraph 26 of this section. (b) The Arizona state retirement system, the corrections officer retirement plan, the public safety personnel retirement system, the elected officials' retirement plan, an optional retirement program established by the Arizona board of regents under section 15-1628, an optional retirement program established by a community college district board under section 15-1451 or a retirement plan established for employees of a county, city or town in this state. 3. A beneficiary's share of the fiduciary adjustment to the extent that the amount determined by section 43-1333 decreases the beneficiary's Arizona gross income. 4. Interest income received on obligations of the United States, minus any interest on indebtedness, or other related expenses, and deducted in arriving at Arizona gross income, that were incurred or continued to purchase or carry such obligations. 5. The excess of a partner's share of income required to be included under section 702(a)(8) of the internal revenue code over the income required to be included under chapter 14, article 2 of this title. 6. The excess of a partner's share of partnership losses determined pursuant to chapter 14, article 2 of this title over the losses allowable under section 702(a)(8) of the internal revenue code. 7. The amount allowed by section 43-1025 for contributions during the taxable year of agricultural crops to charitable organizations. 8. The portion of any wages or salaries paid or incurred by the taxpayer for the taxable year that is equal to the amount of the federal work opportunity credit, the empowerment zone employment credit, the credit for employer paid social security taxes on employee cash tips and the Indian employment credit that the taxpayer received under sections 45A, 45B, 51(a) and 1396 of the internal revenue code. 9. The amount of exploration expenses that is determined pursuant to section 617 of the internal revenue code, that has been deferred in a taxable year ending before January 1, 1990 and for which a subtraction has not previously been made. The subtraction shall be made on a ratable basis as the units of produced ores or minerals discovered or explored as a result of this exploration are sold. 10. The amount included in federal adjusted gross income pursuant to section 86 of the internal revenue code, relating to taxation of social security and railroad retirement benefits. 11. To the extent not already excluded from Arizona gross income under the internal revenue code, compensation received for active service as a member of the reserves, the national guard or the armed forces of the United States, including compensation for service in a combat zone as determined under section 112 of the internal revenue code. 12. The amount of unreimbursed medical and hospital costs, adoption counseling, legal and agency fees and other nonrecurring costs of adoption not to exceed $3,000. In the case of a husband and wife who file separate returns, the subtraction may be taken by either taxpayer or may be divided between them, but the total subtractions allowed both husband and wife may not exceed $3,000. The subtraction under this paragraph may be taken for the costs that are described in this paragraph and that are incurred in prior years, but the subtraction may be taken only in the year during which the final adoption order is granted. 13. The amount authorized by section 43-1027 for the taxable year relating to qualified wood stoves, wood fireplaces or gas fired fireplaces. 14. The amount by which a net operating loss carryover or capital loss carryover allowable pursuant to section 43-1029, subsection F exceeds the net operating loss carryover or capital loss carryover allowable pursuant to section 1341(b)(5) of the internal revenue code. 15. Any amount of qualified educational expenses that is distributed from a qualified state tuition program determined pursuant to section 529 of the internal revenue code and that is included in income in computing federal adjusted gross income. 16. Any item of income resulting from an installment sale that has been properly subjected to income tax in another state in a previous taxable year and that is included in Arizona gross income in the current taxable year. 17. For property placed in service: (a) In taxable years beginning before December 31, 2012, an amount equal to the depreciation allowable pursuant to section 167(a) of the internal revenue code for the taxable year computed as if the election described in section 168(k) of the internal revenue code had been made for each applicable class of property in the year the property was placed in service. (b) In taxable years beginning from and after December 31, 2012 through December 31, 2013, an amount determined in the year the asset was placed in service based on the calculation in subdivision (a) of this paragraph. In the first taxable year beginning from and after December 31, 2013, the taxpayer may elect to subtract the amount necessary to make the depreciation claimed to date for the purposes of this title the same as it would have been if subdivision (c) of this paragraph had applied for the entire time the asset was in service. Subdivision (c) of this paragraph applies for the remainder of the asset's life. If the taxpayer does not make the election under this subdivision, subdivision (a) of this paragraph applies for the remainder of the asset's life. (c) In taxable years beginning from and after December 31, 2013 through December 31, 2015, an amount equal to the depreciation allowable pursuant to section 167(a) of the internal revenue code for the taxable year as computed as if the additional allowance for depreciation had been ten percent of the amount allowed pursuant to section 168(k) of the internal revenue code. (d) In taxable years beginning from and after December 31, 2015 through December 31, 2016, an amount equal to the depreciation allowable pursuant to section 167(a) of the internal revenue code for the taxable year as computed as if the additional allowance for depreciation had been fifty-five percent of the amount allowed pursuant to section 168(k) of the internal revenue code. (e) In taxable years beginning from and after December 31, 2016, an amount equal to the depreciation allowable pursuant to section 167(a) of the internal revenue code for the taxable year as computed as if the additional allowance for depreciation had been the full amount allowed pursuant to section 168(k) of the internal revenue code. 18. With respect to property that is sold or otherwise disposed of during the taxable year by a taxpayer that complied with section 43-1021, paragraph 11 with respect to that property, the amount of depreciation that has been allowed pursuant to section 167(a) of the internal revenue code to the extent that the amount has not already reduced Arizona taxable income in the current or prior taxable years. 19. The amount contributed during the taxable year to college savings plans established pursuant to section 529 of the internal revenue code on behalf of the designated beneficiary to the extent that the contributions were not deducted in computing federal adjusted gross income. The amount subtracted may not exceed: (a) $2,000 per beneficiary for a single individual or a head of household. (b) $4,000 per beneficiary for a married couple filing a joint return. In the case of a husband and wife who file separate returns, the subtraction may be taken by either taxpayer or may be divided between them, but the total subtractions allowed both husband and wife may not exceed $4,000 per beneficiary. 20. The portion of the net operating loss carryforward that would have been allowed as a deduction in the current year pursuant to section 172 of the internal revenue code if the election described in section 172(b)(1)(H) of the internal revenue code had not been made in the year of the loss that exceeds the actual net operating loss carryforward that was deducted in arriving at federal adjusted gross income. This subtraction only applies to taxpayers who made an election under section 172(b)(1)(H) of the internal revenue code as amended by section 1211 of the American recovery and reinvestment act of 2009 (P.L. 111-5) or as amended by section 13 of the worker, homeownership, and business assistance act of 2009 (P.L. 111-92). 21. For taxable years beginning from and after December 31, 2013, the amount of any net capital gain included in federal adjusted gross income for the taxable year derived from investment in a qualified small business as determined by the Arizona commerce authority pursuant to section 41-1518. 22. An amount of any net long-term capital gain included in federal adjusted gross income for the taxable year that is derived from an investment in an asset acquired after December 31, 2011, as follows: (a) For taxable years beginning from and after December 31, 2012 through December 31, 2013, ten percent of the net long-term capital gain included in federal adjusted gross income. (b) For taxable years beginning from and after December 31, 2013 through December 31, 2014, twenty percent of the net long-term capital gain included in federal adjusted gross income. (c) For taxable years beginning from and after December 31, 2014, twenty-five percent of the net long-term capital gain included in federal adjusted gross income. For the purposes of this paragraph, a transferee that receives an asset by gift or at the death of a transferor is considered to have acquired the asset when the asset was acquired by the transferor. If the date an asset is acquired cannot be verified, a subtraction under this paragraph is not allowed. 23. If an individual is not claiming itemized deductions pursuant to section 43-1042, the amount of premium costs for long-term care insurance, as defined in section 20-1691. 24. The amount of eligible access expenditures paid or incurred during the taxable year to comply with the requirements of the Americans with disabilities act of 1990 (P.L. 101-336) or title 41, chapter 9, article 8 as provided by section 43-1024. 25. For taxable years beginning from and after December 31, 2017, the amount of any net capital gain included in Arizona gross income for the taxable year that is derived from the exchange of one kind of legal tender for another kind of legal tender. For the purposes of this paragraph: (a) "Legal tender" means a medium of exchange, including specie, that is authorized by the United States Constitution or Congress to pay debts, public charges, taxes and dues. (b) "Specie" means coins having precious metal content. 26. Benefits, annuities and pensions received as retired or retainer pay of the uniformed services of the United States in amounts as follows: (a) For taxable years through December 31, 2018, an amount totaling not more than $2,500. (b) For taxable years beginning from and after December 31, 2018 through December 31, 2020, an amount totaling not more than $3,500. (c) For taxable years beginning from and after December 31, 2020, the full amount received. 27. For taxable years beginning from and after December 31, 2020, the amount contributed during the taxable year to an achieving a better life experience account established pursuant to section 529A of the internal revenue code on behalf of the designated beneficiary to the extent that the contributions were not deducted in computing federal adjusted gross income. The amount subtracted may not exceed: (a) $2,000 per beneficiary for a single individual or a head of household. (b) $4,000 per beneficiary for a married couple filing a joint return. In the case of a husband and wife who file separate returns, the subtraction may be taken by either taxpayer or may be divided between them, but the total subtractions allowed both husband and wife may not exceed $4,000 per beneficiary. 28. For taxable years beginning from and after December 31, 2020, Arizona small business gross income but only if an individual taxpayer has elected to separately report and pay tax on the taxpayer's Arizona small business adjusted gross income on the Arizona small business income tax return. 29. To the extent not already excluded from Arizona gross income under the internal revenue code, the value of virtual currency and non-fungible tokens the taxpayer received pursuant to an airdrop at the time of the airdrop. This paragraph may not be interpreted as providing a subtraction for any appreciation in value that occurs from holding the virtual currency after the initial receipt of the airdrop. For the purposes of this paragraph: (a) "Airdrop" means the receipt of virtual currency through a means of distribution of virtual currency to the distributed ledger addresses of multiple taxpayers. (b) "Non-fungible token" has the same meaning prescribed in section 43-1028. (c) "Virtual currency" has the same meaning prescribed in section 43-1028. 30. The amount allowed as a subtraction by section 43-1028 for gas fees not already included in the taxpayer's virtual currency or non-fungible token basis. 31. For taxable years beginning from and after December 31, 2023, for an individual who is the owner of a new business as defined in section 41-710.02, including a partner in a partnership, a member of a limited liability company or a shareholder of an S corporation as defined in section 1361 of the internal revenue code, and who received income from the new business, the amount determined as follows: (a) For the new business' first year of operation, an amount equal to one hundred percent of the income received from the new business. (b) For the new business' second year of operation, an amount equal to fifty percent of the income received from the new business. (c) For the new business' third year of operation, an amount equal to twenty-five percent of the income received from the new business. END_STATUTE Sec. 6. Section 43-1122, Arizona Revised Statutes, is amended to read: START_STATUTE43-1122. Subtractions from Arizona gross income; corporations In computing Arizona taxable income for a corporation, the following amounts shall be subtracted from Arizona gross income: 1. The excess of a partner's share of income required to be included under section 702(a)(8) of the internal revenue code over the income required to be included under chapter 14, article 2 of this title. 2. The excess of a partner's share of partnership losses determined pursuant to chapter 14, article 2 of this title over the losses allowable under section 702(a)(8) of the internal revenue code. 3. The amount allowed by section 43-1025 for contributions during the taxable year of agricultural crops to charitable organizations. 4. The portion of any wages or salaries paid or incurred by the taxpayer for the taxable year that is equal to the amount of the federal work opportunity credit, the empowerment zone employment credit, the credit for employer paid social security taxes on employee cash tips and the Indian employment credit that the taxpayer received under sections 45A, 45B, 51(a) and 1396 of the internal revenue code. 5. With respect to property that is sold or otherwise disposed of during the taxable year by a taxpayer that complied with section 43-1121, paragraph 4 with respect to that property, the amount of depreciation that has been allowed pursuant to section 167(a) of the internal revenue code to the extent that the amount has not already reduced Arizona taxable income in the current taxable year or prior taxable years. 6. With respect to a financial institution as defined in section 6-101, expenses and interest relating to tax-exempt income disallowed pursuant to section 265 of the internal revenue code. 7. Dividends received from another corporation owned or controlled directly or indirectly by a recipient corporation. For the purposes of this paragraph, "control" means direct or indirect ownership or control of fifty percent or more of the voting stock of the payor corporation by the recipient corporation. Dividends shall have the meaning provided in section 316 of the internal revenue code. This subtraction shall apply without regard to section 43-961, paragraph 2 and article 4 of this chapter. 8. Interest income received on obligations of the United States. 9. The amount of dividend income from foreign corporations. For the purposes of this paragraph, gross up income as described in section 78 of the internal revenue code, global intangible low-taxed income as defined in section 951A of the internal revenue code and subpart F income as defined in section 952 of the internal revenue code shall be considered foreign dividends. 10. The amount of net operating loss allowed by section 43-1123. 11. The amount of any state income tax refunds received that were included as income in computing federal taxable income. 12. The amount of expense recapture included in income pursuant to section 617 of the internal revenue code for mine exploration expenses. 13. The amount of deferred exploration expenses allowed by section 43-1127. 14. The amount of exploration expenses related to the exploration of oil, gas or geothermal resources, computed in the same manner and on the same basis as a deduction for mine exploration pursuant to section 617 of the internal revenue code. This computation is subject to the adjustments contained in section 43-1121, paragraph 10 and paragraphs 12 and 13 of this section relating to exploration expenses. 15. The amortization of pollution control devices allowed by section 43-1129. 16. The amount of amortization of the cost of child care facilities pursuant to section 43-1130. 17. The amount of income from a domestic international sales corporation required to be included in the income of its shareholders pursuant to section 995 of the internal revenue code. 18. The income of an insurance company that is exempt under section 43-1201 to the extent that it is included in computing Arizona gross income on a consolidated return pursuant to section 43-947. 19. The amount by which a capital loss carryover allowable pursuant to section 43-1130.01, subsection F exceeds the capital loss carryover allowable pursuant to section 1341(b)(5) of the internal revenue code. 20. An amount equal to the depreciation allowable pursuant to section 167(a) of the internal revenue code for the taxable year computed as if the election described in section 168(k)(7) of the internal revenue code had been made for each applicable class of property in the year the property was placed in service. 21. The amount of eligible access expenditures paid or incurred during the taxable year to comply with the requirements of the Americans with disabilities act of 1990 (P.L. 101-336) or title 41, chapter 9, article 8 as provided by section 43-1124. 22. For taxable years beginning from and after December 31, 2017, the amount of any net capital gain included in Arizona gross income for the taxable year that is derived from the exchange of one kind of legal tender for another kind of legal tender. For the purposes of this paragraph: (a) "Legal tender" means a medium of exchange, including specie, that is authorized by the United States Constitution or Congress to pay debts, public charges, taxes and dues. (b) "Specie" means coins having precious metal content. 23. With respect to a public service corporation operating a water system or sewage disposal facility, the amount of monies or property received as a contribution in aid of construction. For the purposes of this paragraph: (a) "Contribution in aid of construction" means any amount of monies or other property contributed to a public service corporation that provides water or sewage disposal services to the extent that the purpose of the contribution is to provide for expanding, improving or replacing the public service corporation's water system or sewage disposal facilities, including any amount of monies or other property contributed to a public service corporation for a water system or sewage disposal facility subject to a contingent obligation to repay the amount, in whole or in part, to the contributor. (b) "Public service corporation" means a public service corporation as defined in article XV, section 2, Constitution of Arizona, that is regulated by the corporation commission. 24. For taxable years beginning from and after December 31, 2023, for a corporation that is also a new business as defined in section 41-710.02, the amount determined as follows: (a) For the corporation's first year of operation, an amount equal to one hundred percent of the corporation's Arizona gross income. (b) For the corporation's second year of operation, an amount equal to fifty percent of the corporation's Arizona gross income. (c) For the corporation's third year of operation, an amount equal to twenty-five percent of the corporation's Arizona gross income. END_STATUTE |
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