state healthcare contracts;
rates
HB 2254 sets employee health care insurance copayment rates at five dollars for single coverage and seventy-five dollars for family coverage.
There is a
proposed strike-everything amendment in the Appropriations Committee which
provides a transaction privilege tax and use tax exemption for sales by
nonprofit organizations at cultural and civic events.
Arizona imposes a transaction privilege (sales) tax on a several types of taxable activities. The most common activity is the retail classification, however, the tax also applies under such activities as amusements and restaurants.
Current law allows exemptions from the amusement and restaurant classifications for certain events or activities sponsored by nonprofit organizations if no part of the net income from these activities is for the benefit of any private shareholder or individual. Some of the current exemptions from the amusement classification include religious events, events by the state fair board, cactus league games, rodeos and activities by a musical or dance group, museums or zoos. Under the restaurant classification, exemptions are made for churches, fraternal organizations, veterans organizations, and nonprofits selling food and beverage items at certain exempted activities.
The proposed strike-everything amendment would expand these exemptions to include sales of items under the retail classification for nonprofit organizations at cultural or civic related festivals or events. An exemption is also provided under the amusement classification. The exemptions are retroactive to 1983 tax year.
The bill also allows for refunds for any tax paid on these items to date. The refund provisions are limited to $10,000 for all taxpayers. If total refund amount requests exceed $10,000, then DOR will prorate the refunds so that the total of all refunds are limited to $10,000.
The Mill Avenue Merchants Association (MAMA) is a nonprofit organization that is exempt under 501(c)(6) of the Internal Revenue Code (IRC). MAMA has put on a number of cultural and civic related festivals and events over the last twenty years to raise funds to support it’s non- profit operations and provide funding to other nonprofit and civic organizations.
DOR conducted a tpt audit of MAMA and imposed sales tax on the revenue generated from its fundraising activities. Specifically, DOR imposed the tpt on its sales of commemorative event tee shirts and gate receipts, however, it did grant exemptions under the current restaurant classification. DOR conducted the audit in 1993 and made the assessment for the period from January 1983 through May 1993. Taxes were abated under the restaurant classification.