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a. There is hereby levied and imposed, subject to all other provisions of this chapter, an excise tax on the storage or use in the City of tangible personal property, for the purpose of raising revenue to be used in defraying the necessary expenses of the City, such taxes to be collected by the Tax Collector.

b. The tax rate shall be at an amount equal to two and three-tenths percent of the:

1. Cost of tangible personal property, except jet fuel, acquired from a retailer, upon every person storing or using such property in this City.

2. Gross income from the business activity upon every person meeting the requirements of subsection 14-620(b) or (c) who is engaged or continuing in the business activity of sales, rentals, leases, or licenses of tangible personal property to persons within the City for storage or use within the City, to the extent that tax has been collected upon such transaction.

3. Cost of the tangible personal property provided under the conditions of a warranty, maintenance, or service contract.

4. Cost of complimentary items provided to patrons without itemized charge by a restaurant, hotel, or other business.

5. Cost of food consumed by the owner or by employees or agents of the owner of a restaurant or bar subject to the provisions of Section 14-455 of this Chapter.

c. It shall be presumed that all tangible personal property acquired by any person who at the time of such acquisition resides in the City is acquired for storage or use in this City, until the contrary is established by the taxpayer.

d. Exclusions. For the purposes of this article, the acquisition of the following shall not be deemed to be the purchase, rental, lease, or license of tangible personal property for storage or use within the City:

1. Stocks, bonds, options, or other similar materials.

2. Lottery tickets or shares sold pursuant to A.R.S. tit. 5, ch. 5, art. 1 (A.R.S. § 5-501 et seq.).

3. Platinum, bullion, or monetized bullion, except minted or manufactured coins transferred or acquired primarily for their numismatic value as prescribed by regulation.

e. Notwithstanding the provisions of subsection (a) above, when the amount subject to the tax for any single item of tangible personal property exceeds ten thousand dollars ($10,000.00), the two and three-tenths percent (2.3%) tax rate shall apply to the first $10,000.00. For the amount greater than $10,000.00, the measure of tax shall be at a rate of two percent (2%).

f. Additional imposition. The tax rate shall be at an amount equal to 0.732 cents per gallon of jet fuel upon every person storing or using such property in this City. (Ord. No. G-2976, § 5; Ord. No. G-3458, §§ 5, 6; Ord. No. G-3696, § 15; Ord. No. G-4200, § 16, 1999; Ord. No. G-4254, § 16, 2000; Ord. No. G-4987, §§ 16, 17(7), 18, 2007; Ord. No. G-6073, 2015)

Note—With respect to the use, storage or possession of property upon which a tax is imposed pursuant to Section 14-610, the effective date shall be the date of the entrance into the city limits of the property upon which the use tax is imposed.

Code reviser’s note: Section 17 of Ordinance No. G-6073 provides: "The threshold amount of $10,000.00 as provided for in Section 14 (Phoenix City Code Section 14-460(d)) and Section 16 (Phoenix City Code Section 14-610(e)) shall be adjusted for inflation on a biennial basis starting on January 1, 2018 and continuing until the tax expires by using the Phoenix Area Consumer Price Index for the two prior fiscal years as determined by the Center for Business research at Arizona State University, or if this index is not available, the Consumer Price Index of the Department of Labor." Ord. No. G-6073 sunsets December 31, 2050.