2020 Arizona Revised Statutes
Title 42 - Taxation
§ 42-5041 Partial assessment of costs to local governments, councils and authorities

42-5041. Partial assessment of costs to local governments, councils and authorities

A. From and after June 30, 2015, the department shall assess and collect fees from cities, towns, counties, councils of governments and regional transportation authorities as determined by the director and as provided by this section to recover a portion of administrative, program and other operating costs incurred in providing administrative and collection services to local governments.

B. From and after June 30, 2015, a fee is assessed to each county, city and town that receives state shared revenues pursuant to section 42-5029 or 43-206, to each council of governments that receives revenues pursuant to section 42-6105 and to each regional transportation authority located in a county with a population of more than four hundred thousand persons that receives revenues pursuant to section 42-6106.

C. In fiscal year 2015-2016, a fee is assessed to each city and town for which the department does not administer and collect transaction privilege taxes pursuant to chapter 6, article 1 of this title.

D. The department shall assess the fees under this section not later than July 31 each year, and the fees are payable immediately on assessment. If a county, city, town, council of governments or regional transportation authority fails to pay the assessment in full on or before September 30, the department shall notify the state treasurer who shall withhold the delinquent amount from the distribution of monies to the affected county, city or town pursuant to section 42-5029, from the distribution of monies to the affected council of governments pursuant to section 42-6105 and from the distribution of monies to the affected regional transportation authority pursuant to section 42-6106, and continue to withhold monies until the entire amount of the assessment has been satisfied.

E. All monies paid to the department or withheld by the state treasurer for the fees assessed pursuant to subsection B of this section shall be credited to the department of revenue administrative fund established by section 42-1116.01.

F. All monies paid to the department or withheld by the state treasurer for the fees assessed pursuant to subsection C of this section shall be credited to the department of revenue IGA and ISA fund established pursuant to section 35-142.

G. Counties, cities and towns may meet their cost sharing obligation from any source of county, city or town revenue designated by the appropriate county, city or town. The county sources may include monies of any countywide special taxing jurisdiction in which the board of supervisors serves as the board of directors.

H. County, city and town contributions made pursuant to this section are excluded from the applicable expenditure limitations.