Recent Developments

Tax Audit Services SUMMARY OF KEY PROVISIONS OF SENATE BILL 2111

The tax law became effective January 1, 1015 with certain financial and administrative provisions that will affect cities. The key provisions are:

1. Contracting
The tax on major remodeling and new construction contractors remains basically the same. The contracting tax on trade contractors who do not perform major remodeling or new construction projects is eliminated and replaced by a tax on the purchase of materials. This transfers the tax revenues to the location where the material supplier is located and also eliminates the markup on the sale of material to the final consumer. Cities therefore will experience a revenue loss as major material suppliers may not be located within the city.

2. Administration

The auditing function will be restricted by the law. All city audits must now include the state, county & any other city. The audits must be submitted to the ADOR for assessment, protest, settlement and collection. The ADOR approves auditors and establishes audit procedures.

A city audit may only be conducted on businesses that have only one location. If a taxpayer has multiple locations the city must obtain approve from the ADOR prior to initiating it. The bill authorizes the ADOR to negotiate with taxpayers regarding assessment, penalties, payment plans, settlements, etc.



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Contact Info

Phone: 480.940.1130
Fax: 480.705.9481