State Codes and Statutes

Statutes > Arizona > Title41 > 41-1525.01

41-1525.01. Certification of small manufacturing or small commercial printing businesses; definitions

(Rpld. 7/1/11)

A. Through June 30, 2011, the department of commerce shall annually certify small manufacturing or small commercial printing businesses that qualify for property tax incentives under section 41-1525, subsection E. To qualify under this section:

1. A small manufacturing or small commercial printing business must meet the minimum investment requirements prescribed by this paragraph. The investments may be cumulative. A small manufacturing or small commercial printing business shall not include fixed assets purchased from an enterprise zone manufacturing or small commercial printing company already certified under this section. Subject to subsection E of this section, certification is effective on January 1 of the valuation year, as defined in section 42-11001, following completion of the required investment. To qualify, the small manufacturing or small commercial printing business must invest at least the following amount, as applicable, in fixed assets in the zone after December 31, 2000:

(a) In counties with a population of two hundred fifty thousand persons or more, two million dollars, except as provided in subdivision (b) of this paragraph.

(b) In all other counties, and for cities and towns located in counties with a population of two hundred fifty thousand persons or more and that have no portion of the corporate boundaries located within twenty-five air miles from the exterior corporate boundary of the largest city in the county:

(i) Cities with a population of eighty thousand persons or more, two million dollars.

(ii) Cities and towns with a population of at least fifteen thousand but less than eighty thousand persons and in unincorporated areas of the county, one million dollars.

(iii) Cities and towns with a population of less than fifteen thousand persons, five hundred thousand dollars.

2. A business initially applying for certification under this section must report the following with supporting documentation to the department of commerce on a form and in a manner prescribed by the department:

(a) Business name and mailing address and any other contact information requested by the department.

(b) Business location and the enterprise zone in which the business is located.

(c) The number of full-time employees at the time of application and the benefits provided to employees.

(d) The assessor's parcel number of real property to which class six assessment classification will apply.

(e) If available, the assessor's account number for personal property to which class six assessment classification will apply.

(f) For the zone location, the gross receipts, gross payroll and average hourly wage paid to employees for the preceding taxable year.

(g) A statement of the ownership and description of operations of the zone business.

(h) Documentation of the required investment in fixed assets that identifies the fixed assets and establishes the cost of the fixed assets and the time of investment.

(i) Documentation that establishes the type and amount of manufacturing or printing activity conducted at the zone location.

(j) Ownership and full cash value of real and personal property to be certified.

(k) Other information necessary for the management and reporting of this program as determined by the department.

B. The department shall not certify any business for qualification for property tax incentives after June 30, 2011. However, certification under this section is valid for five years subject to annual recertification regardless of whether under changing circumstances the business grows beyond ninety-nine full-time employees at the zone location or gross annual receipts of more than four million dollars and regardless of whether the enterprise zone continues in existence if it continues to meet the other eligibility requirements.

C. In order to be annually recertified pursuant to subsection B of this section, a small manufacturing or small commercial printing business must continue to meet all the eligibility requirements of this section and must annually report the following and provide supporting documentation to the department of commerce on a form and in a manner approved by the department:

1. Information required by subsection A, paragraph 2, subdivisions (a), (b), (d), (e), (f), (i), (j) and (k) of this section.

2. Changes in location, ownership and operations of the business in the immediately preceding year.

3. The average number of full-time employees at the zone location for the immediately preceding year.

D. To qualify for classification as class six property for tax purposes, the certified business must submit a copy of the department's initial certification, and each annual recertification, with a written request to reclassify the property to the county assessor of the county in which the property is located by December 10 each year.

E. A manufacturer or commercial printer shall submit its application for initial certification or annual recertification to the department not later than October 1 of each year. The department shall notify the appropriate county assessors of all qualified enterprise zone properties located within their county not later than December 1 of each year.

F. If a manufacturer or commercial printer moves from the originally certified location, it loses its eligibility. The manufacturer or commercial printer may apply for certification at a new zone location for the remainder of its five years if it meets the minimum investment requirements in fixed assets that were not moved from the prior zone location, meets all other eligibility requirements of this section and has not reached the five year eligibility limit.

G. Once a manufacturer or commercial printer establishes the basis for eligibility and the department certifies the manufacturer or commercial printer, the business may change its basis of eligibility during the four remaining years of potential eligibility as long as the manufacturer or commercial printer meets the requirements for the new basis of eligibility.

H. If a certified manufacturing or commercial printer business is purchased by another entity or changes by more than twenty per cent of the ownership interest through reorganization, stock purchase or merger, the certification is terminated. The new manufacturer or small commercial printer may apply for certification according to eligibility requirements of this section.

I. A small business that was originally certified for a ten year period of property reclassification loses eligibility for any year in which the size limits are exceeded or the business is no longer independently owned and operated.

J. The department of commerce shall notify the department of revenue and the county assessor if a certified small manufacturing or small commercial printing business closes, moves from the enterprise zone or fails to maintain its eligibility, and the assessor shall make the appropriate changes to the tax roll.

K. The department of commerce may make site visits to a taxpayer's facilities if it is necessary to further document or clarify reported information. The taxpayer must freely provide the access.

L. Documents filed with the department of commerce pursuant to this section shall contain either a sworn statement or certification, signed by an officer of the company under penalty of perjury, that the information contained is true and correct according to the best belief and knowledge of the person submitting the information after a reasonable investigation of the facts. If the document contains information that is materially false, the taxpayer is ineligible for the tax benefits under this section and is subject to recovery of the amount of tax benefits allowed in preceding years based on the false information, including penalties and interest.

M. The department by rule may prescribe additional reporting requirements for persons who claim a tax benefit pursuant to this section.

N. For the purposes of this section:

1. "Closely held" means five or fewer individuals own more than fifty per cent of the ownership interest in the company, corporation or partnership.

2. "Commercial printing" means producing printed product through a lithographic or flexographic process, from material cut to press size on the premises, transferred with pressure and finished with a process that may include scoring, folding, die cutting, gluing, stamping, embossing or packaging. Commercial printing does not include businesses regulated pursuant to section 42-5065.

3. "Family owned" means more than fifty per cent of the ownership interest in the company, corporation or partnership is owned by members of the same family.

4. "Fixed assets" means property that is used in operating a business, such as furniture, land, buildings and machinery, and that is not ordinarily converted into cash after they are declared fixed assets.

5. "Independently owned and operated" means not more than fifty per cent of the ownership interest in the small manufacturing or small commercial printer business is held by another entity unless the final ownership of the entity is family owned or closely held.

6. "Manufacturing" means fabricating, producing or manufacturing products, wares or articles for use from raw or prepared materials and imparting to those materials new forms, qualities, properties and combinations. Manufacturing does not include generating electricity at a facility assessed pursuant to title 42, chapter 14, article 4.

7. "Minority owned business" means an independently owned and operated business of which a majority of the business is owned by African Americans, persons of Hispanic or Latin American ancestry and persons of Native American, Asian or other minority origin or descent.

8. "Small commercial printing business" means a minority owned business or a woman owned business or a concern, that is independently owned and operated and employs less than one hundred full-time employees at the location in the enterprise zone when certified by the department of commerce or had gross annual receipts of less than four million dollars in its last fiscal year.

9. "Small manufacturing business" means a minority owned business or a woman owned business or a concern, that is independently owned and operated and employs less than one hundred full-time employees at the location in the enterprise zone when certified by the department of commerce or had gross annual receipts of less than four million dollars in its last fiscal year.

10. "Woman owned business" means an independently owned and operated business of which a majority of the business is owned by one or more women.

11. "Zone location" has the same meaning prescribed in section 41-1525.

State Codes and Statutes

Statutes > Arizona > Title41 > 41-1525.01

41-1525.01. Certification of small manufacturing or small commercial printing businesses; definitions

(Rpld. 7/1/11)

A. Through June 30, 2011, the department of commerce shall annually certify small manufacturing or small commercial printing businesses that qualify for property tax incentives under section 41-1525, subsection E. To qualify under this section:

1. A small manufacturing or small commercial printing business must meet the minimum investment requirements prescribed by this paragraph. The investments may be cumulative. A small manufacturing or small commercial printing business shall not include fixed assets purchased from an enterprise zone manufacturing or small commercial printing company already certified under this section. Subject to subsection E of this section, certification is effective on January 1 of the valuation year, as defined in section 42-11001, following completion of the required investment. To qualify, the small manufacturing or small commercial printing business must invest at least the following amount, as applicable, in fixed assets in the zone after December 31, 2000:

(a) In counties with a population of two hundred fifty thousand persons or more, two million dollars, except as provided in subdivision (b) of this paragraph.

(b) In all other counties, and for cities and towns located in counties with a population of two hundred fifty thousand persons or more and that have no portion of the corporate boundaries located within twenty-five air miles from the exterior corporate boundary of the largest city in the county:

(i) Cities with a population of eighty thousand persons or more, two million dollars.

(ii) Cities and towns with a population of at least fifteen thousand but less than eighty thousand persons and in unincorporated areas of the county, one million dollars.

(iii) Cities and towns with a population of less than fifteen thousand persons, five hundred thousand dollars.

2. A business initially applying for certification under this section must report the following with supporting documentation to the department of commerce on a form and in a manner prescribed by the department:

(a) Business name and mailing address and any other contact information requested by the department.

(b) Business location and the enterprise zone in which the business is located.

(c) The number of full-time employees at the time of application and the benefits provided to employees.

(d) The assessor's parcel number of real property to which class six assessment classification will apply.

(e) If available, the assessor's account number for personal property to which class six assessment classification will apply.

(f) For the zone location, the gross receipts, gross payroll and average hourly wage paid to employees for the preceding taxable year.

(g) A statement of the ownership and description of operations of the zone business.

(h) Documentation of the required investment in fixed assets that identifies the fixed assets and establishes the cost of the fixed assets and the time of investment.

(i) Documentation that establishes the type and amount of manufacturing or printing activity conducted at the zone location.

(j) Ownership and full cash value of real and personal property to be certified.

(k) Other information necessary for the management and reporting of this program as determined by the department.

B. The department shall not certify any business for qualification for property tax incentives after June 30, 2011. However, certification under this section is valid for five years subject to annual recertification regardless of whether under changing circumstances the business grows beyond ninety-nine full-time employees at the zone location or gross annual receipts of more than four million dollars and regardless of whether the enterprise zone continues in existence if it continues to meet the other eligibility requirements.

C. In order to be annually recertified pursuant to subsection B of this section, a small manufacturing or small commercial printing business must continue to meet all the eligibility requirements of this section and must annually report the following and provide supporting documentation to the department of commerce on a form and in a manner approved by the department:

1. Information required by subsection A, paragraph 2, subdivisions (a), (b), (d), (e), (f), (i), (j) and (k) of this section.

2. Changes in location, ownership and operations of the business in the immediately preceding year.

3. The average number of full-time employees at the zone location for the immediately preceding year.

D. To qualify for classification as class six property for tax purposes, the certified business must submit a copy of the department's initial certification, and each annual recertification, with a written request to reclassify the property to the county assessor of the county in which the property is located by December 10 each year.

E. A manufacturer or commercial printer shall submit its application for initial certification or annual recertification to the department not later than October 1 of each year. The department shall notify the appropriate county assessors of all qualified enterprise zone properties located within their county not later than December 1 of each year.

F. If a manufacturer or commercial printer moves from the originally certified location, it loses its eligibility. The manufacturer or commercial printer may apply for certification at a new zone location for the remainder of its five years if it meets the minimum investment requirements in fixed assets that were not moved from the prior zone location, meets all other eligibility requirements of this section and has not reached the five year eligibility limit.

G. Once a manufacturer or commercial printer establishes the basis for eligibility and the department certifies the manufacturer or commercial printer, the business may change its basis of eligibility during the four remaining years of potential eligibility as long as the manufacturer or commercial printer meets the requirements for the new basis of eligibility.

H. If a certified manufacturing or commercial printer business is purchased by another entity or changes by more than twenty per cent of the ownership interest through reorganization, stock purchase or merger, the certification is terminated. The new manufacturer or small commercial printer may apply for certification according to eligibility requirements of this section.

I. A small business that was originally certified for a ten year period of property reclassification loses eligibility for any year in which the size limits are exceeded or the business is no longer independently owned and operated.

J. The department of commerce shall notify the department of revenue and the county assessor if a certified small manufacturing or small commercial printing business closes, moves from the enterprise zone or fails to maintain its eligibility, and the assessor shall make the appropriate changes to the tax roll.

K. The department of commerce may make site visits to a taxpayer's facilities if it is necessary to further document or clarify reported information. The taxpayer must freely provide the access.

L. Documents filed with the department of commerce pursuant to this section shall contain either a sworn statement or certification, signed by an officer of the company under penalty of perjury, that the information contained is true and correct according to the best belief and knowledge of the person submitting the information after a reasonable investigation of the facts. If the document contains information that is materially false, the taxpayer is ineligible for the tax benefits under this section and is subject to recovery of the amount of tax benefits allowed in preceding years based on the false information, including penalties and interest.

M. The department by rule may prescribe additional reporting requirements for persons who claim a tax benefit pursuant to this section.

N. For the purposes of this section:

1. "Closely held" means five or fewer individuals own more than fifty per cent of the ownership interest in the company, corporation or partnership.

2. "Commercial printing" means producing printed product through a lithographic or flexographic process, from material cut to press size on the premises, transferred with pressure and finished with a process that may include scoring, folding, die cutting, gluing, stamping, embossing or packaging. Commercial printing does not include businesses regulated pursuant to section 42-5065.

3. "Family owned" means more than fifty per cent of the ownership interest in the company, corporation or partnership is owned by members of the same family.

4. "Fixed assets" means property that is used in operating a business, such as furniture, land, buildings and machinery, and that is not ordinarily converted into cash after they are declared fixed assets.

5. "Independently owned and operated" means not more than fifty per cent of the ownership interest in the small manufacturing or small commercial printer business is held by another entity unless the final ownership of the entity is family owned or closely held.

6. "Manufacturing" means fabricating, producing or manufacturing products, wares or articles for use from raw or prepared materials and imparting to those materials new forms, qualities, properties and combinations. Manufacturing does not include generating electricity at a facility assessed pursuant to title 42, chapter 14, article 4.

7. "Minority owned business" means an independently owned and operated business of which a majority of the business is owned by African Americans, persons of Hispanic or Latin American ancestry and persons of Native American, Asian or other minority origin or descent.

8. "Small commercial printing business" means a minority owned business or a woman owned business or a concern, that is independently owned and operated and employs less than one hundred full-time employees at the location in the enterprise zone when certified by the department of commerce or had gross annual receipts of less than four million dollars in its last fiscal year.

9. "Small manufacturing business" means a minority owned business or a woman owned business or a concern, that is independently owned and operated and employs less than one hundred full-time employees at the location in the enterprise zone when certified by the department of commerce or had gross annual receipts of less than four million dollars in its last fiscal year.

10. "Woman owned business" means an independently owned and operated business of which a majority of the business is owned by one or more women.

11. "Zone location" has the same meaning prescribed in section 41-1525.


State Codes and Statutes

State Codes and Statutes

Statutes > Arizona > Title41 > 41-1525.01

41-1525.01. Certification of small manufacturing or small commercial printing businesses; definitions

(Rpld. 7/1/11)

A. Through June 30, 2011, the department of commerce shall annually certify small manufacturing or small commercial printing businesses that qualify for property tax incentives under section 41-1525, subsection E. To qualify under this section:

1. A small manufacturing or small commercial printing business must meet the minimum investment requirements prescribed by this paragraph. The investments may be cumulative. A small manufacturing or small commercial printing business shall not include fixed assets purchased from an enterprise zone manufacturing or small commercial printing company already certified under this section. Subject to subsection E of this section, certification is effective on January 1 of the valuation year, as defined in section 42-11001, following completion of the required investment. To qualify, the small manufacturing or small commercial printing business must invest at least the following amount, as applicable, in fixed assets in the zone after December 31, 2000:

(a) In counties with a population of two hundred fifty thousand persons or more, two million dollars, except as provided in subdivision (b) of this paragraph.

(b) In all other counties, and for cities and towns located in counties with a population of two hundred fifty thousand persons or more and that have no portion of the corporate boundaries located within twenty-five air miles from the exterior corporate boundary of the largest city in the county:

(i) Cities with a population of eighty thousand persons or more, two million dollars.

(ii) Cities and towns with a population of at least fifteen thousand but less than eighty thousand persons and in unincorporated areas of the county, one million dollars.

(iii) Cities and towns with a population of less than fifteen thousand persons, five hundred thousand dollars.

2. A business initially applying for certification under this section must report the following with supporting documentation to the department of commerce on a form and in a manner prescribed by the department:

(a) Business name and mailing address and any other contact information requested by the department.

(b) Business location and the enterprise zone in which the business is located.

(c) The number of full-time employees at the time of application and the benefits provided to employees.

(d) The assessor's parcel number of real property to which class six assessment classification will apply.

(e) If available, the assessor's account number for personal property to which class six assessment classification will apply.

(f) For the zone location, the gross receipts, gross payroll and average hourly wage paid to employees for the preceding taxable year.

(g) A statement of the ownership and description of operations of the zone business.

(h) Documentation of the required investment in fixed assets that identifies the fixed assets and establishes the cost of the fixed assets and the time of investment.

(i) Documentation that establishes the type and amount of manufacturing or printing activity conducted at the zone location.

(j) Ownership and full cash value of real and personal property to be certified.

(k) Other information necessary for the management and reporting of this program as determined by the department.

B. The department shall not certify any business for qualification for property tax incentives after June 30, 2011. However, certification under this section is valid for five years subject to annual recertification regardless of whether under changing circumstances the business grows beyond ninety-nine full-time employees at the zone location or gross annual receipts of more than four million dollars and regardless of whether the enterprise zone continues in existence if it continues to meet the other eligibility requirements.

C. In order to be annually recertified pursuant to subsection B of this section, a small manufacturing or small commercial printing business must continue to meet all the eligibility requirements of this section and must annually report the following and provide supporting documentation to the department of commerce on a form and in a manner approved by the department:

1. Information required by subsection A, paragraph 2, subdivisions (a), (b), (d), (e), (f), (i), (j) and (k) of this section.

2. Changes in location, ownership and operations of the business in the immediately preceding year.

3. The average number of full-time employees at the zone location for the immediately preceding year.

D. To qualify for classification as class six property for tax purposes, the certified business must submit a copy of the department's initial certification, and each annual recertification, with a written request to reclassify the property to the county assessor of the county in which the property is located by December 10 each year.

E. A manufacturer or commercial printer shall submit its application for initial certification or annual recertification to the department not later than October 1 of each year. The department shall notify the appropriate county assessors of all qualified enterprise zone properties located within their county not later than December 1 of each year.

F. If a manufacturer or commercial printer moves from the originally certified location, it loses its eligibility. The manufacturer or commercial printer may apply for certification at a new zone location for the remainder of its five years if it meets the minimum investment requirements in fixed assets that were not moved from the prior zone location, meets all other eligibility requirements of this section and has not reached the five year eligibility limit.

G. Once a manufacturer or commercial printer establishes the basis for eligibility and the department certifies the manufacturer or commercial printer, the business may change its basis of eligibility during the four remaining years of potential eligibility as long as the manufacturer or commercial printer meets the requirements for the new basis of eligibility.

H. If a certified manufacturing or commercial printer business is purchased by another entity or changes by more than twenty per cent of the ownership interest through reorganization, stock purchase or merger, the certification is terminated. The new manufacturer or small commercial printer may apply for certification according to eligibility requirements of this section.

I. A small business that was originally certified for a ten year period of property reclassification loses eligibility for any year in which the size limits are exceeded or the business is no longer independently owned and operated.

J. The department of commerce shall notify the department of revenue and the county assessor if a certified small manufacturing or small commercial printing business closes, moves from the enterprise zone or fails to maintain its eligibility, and the assessor shall make the appropriate changes to the tax roll.

K. The department of commerce may make site visits to a taxpayer's facilities if it is necessary to further document or clarify reported information. The taxpayer must freely provide the access.

L. Documents filed with the department of commerce pursuant to this section shall contain either a sworn statement or certification, signed by an officer of the company under penalty of perjury, that the information contained is true and correct according to the best belief and knowledge of the person submitting the information after a reasonable investigation of the facts. If the document contains information that is materially false, the taxpayer is ineligible for the tax benefits under this section and is subject to recovery of the amount of tax benefits allowed in preceding years based on the false information, including penalties and interest.

M. The department by rule may prescribe additional reporting requirements for persons who claim a tax benefit pursuant to this section.

N. For the purposes of this section:

1. "Closely held" means five or fewer individuals own more than fifty per cent of the ownership interest in the company, corporation or partnership.

2. "Commercial printing" means producing printed product through a lithographic or flexographic process, from material cut to press size on the premises, transferred with pressure and finished with a process that may include scoring, folding, die cutting, gluing, stamping, embossing or packaging. Commercial printing does not include businesses regulated pursuant to section 42-5065.

3. "Family owned" means more than fifty per cent of the ownership interest in the company, corporation or partnership is owned by members of the same family.

4. "Fixed assets" means property that is used in operating a business, such as furniture, land, buildings and machinery, and that is not ordinarily converted into cash after they are declared fixed assets.

5. "Independently owned and operated" means not more than fifty per cent of the ownership interest in the small manufacturing or small commercial printer business is held by another entity unless the final ownership of the entity is family owned or closely held.

6. "Manufacturing" means fabricating, producing or manufacturing products, wares or articles for use from raw or prepared materials and imparting to those materials new forms, qualities, properties and combinations. Manufacturing does not include generating electricity at a facility assessed pursuant to title 42, chapter 14, article 4.

7. "Minority owned business" means an independently owned and operated business of which a majority of the business is owned by African Americans, persons of Hispanic or Latin American ancestry and persons of Native American, Asian or other minority origin or descent.

8. "Small commercial printing business" means a minority owned business or a woman owned business or a concern, that is independently owned and operated and employs less than one hundred full-time employees at the location in the enterprise zone when certified by the department of commerce or had gross annual receipts of less than four million dollars in its last fiscal year.

9. "Small manufacturing business" means a minority owned business or a woman owned business or a concern, that is independently owned and operated and employs less than one hundred full-time employees at the location in the enterprise zone when certified by the department of commerce or had gross annual receipts of less than four million dollars in its last fiscal year.

10. "Woman owned business" means an independently owned and operated business of which a majority of the business is owned by one or more women.

11. "Zone location" has the same meaning prescribed in section 41-1525.

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