CITY OF COTTONWOOD
PUBLIC NOTICE
PROPOSED USE TAX
Pursuant to Arizona Revised Statutes Section 9-499.15, the City of Cottonwood (“City”) hereby gives notice that it may adopt a use tax of up to 3 percent on certain tangible personal property, including vehicles and equipment used or stored in the City by individuals and businesses.
The tax would only be assessed in cases where, and to the extent that a local sales, transaction privilege or other similar tax in the same amount has not been already paid to another jurisdiction.
The tax would be implemented by adding Article VI, Sections 600 through 660 of Arizona’s Model City Tax Code (MCTC) to the City’s Municipal Tax Code, and may be implemented with or without exceptions for restaurant meals provided to employees (MCTC Local Option #AA); donations made to and received by a qualified charitable organization established under Section 501(c)(3) of the United States Internal Revenue Code (MCTC Local Option #HH); and tangible personal property used or stored by the City (MCTC Local Option #JJ)
REPORT SUPPORTING NEW RATES/FEES
The City of Cottonwood is proposing some changes to its options under the Model City Tax Code (“Code”). This is an effort to recover Transaction Privilege Tax (“TPT”) revenue that is lost to other communities due to varying TPT rates. The proposed change is the elimination of Option 15 of the “Code”. This change to the “Code” will essentially add Article VI (Sections 600 through 660) of the “Code” titled use Tax to the City Tax Code.
The impact to the “City” is estimated to be $75,000 annually and will be used to support current as well as future community needs. This change will:
- minimally affect local citizens,
- Level the playing field for local businesses with big ticket items, and
- Help reduce tax leakage to other communities with lower TPT rates.
All this without adding any additional expense to the “City.”
The City Council will conduct a public hearing and consider the proposed changes at the following date and time:
January 2, 2018 at 6:00 P.M.
City Council Chambers
826 North Main Street
Cottonwood, Arizona 86326
The first reading of a proposed Ordinance to approve this change may occur on this date.
A second public hearing and possible adoption the Ordinance implementing the tax will take place on:
January 16, 2018 at 6:00 P.M.
City Council Chambers
826 North Main Street
Cottonwood, Arizona 86326
The Cottonwood Municipal Tax Code is part of the Arizona Model City Code and can be found on the City’s website at www.cottonwoodaz.gov. The Arizona Model City Tax Code is maintained by the Arizona Department of Revenue and can be found at www.azdor.gov.
Individuals are invited to contact Jesus R. Rodriguez, Deputy City Manager, at (928) 340-2710 with any questions or to obtain additional information about this proposal.