Council Memo

Adopt Resolution No. 2019-1714 Declaring as a Public Record the Document Filed with the City Clerk entitled “Privilege and Use Tax Code” and adopt Ordinance No. 2019-1679 amending Title IV, Chapter 4-1.




  1. Printout
  2. Resolution No. 2019-1714 (This file has not yet been converted to a viewable format)
  3. Ordinance No. 2019-1679 (This file has not yet been converted to a viewable format)
  4. Privilege and Use Tax Code

Document Comments

Recommended Action: 1) MOVE to adopt Resolution No. 2019-1714; and 2) MOVE to adopt Ordinance No. 2019-1679.


Item Summary


In 1987 the City of Prescott adopted the Model City Tax Code (MCTC), which regulates the levying of privilege tax for all cities in Arizona. The MCTC is the City's guiding tax document. When changes are made to the MCTC, the City is required to align the City Code with the MCTC.  The last time the City incorporated changes to the MCTC was November 18, 2014.


The Municipal Tax Code Commission (MTCC) maintains the MCTC and consists of a representative of the Department of Revenue and nine mayors or councilmembers of cities or towns that have adopted the model city tax code. Five members are appointed by the Governor, two members are appointed by the President of the Senate and two members are appointed by the Speaker of the House of Representatives.


The MTCC has made several changes to the MCTC over that last five years.  The changes are wording clarifications and other changes required by the State Legislature.  The items taxable in the City of Prescott are determined by the options that the City adopted when the MCTC was first implemented.  Resolution No. 2019-1714 and Ordinance No. 2019-1679 replaces City Code 4-1 with the updated version of the MCTC and does not change the taxability of any items.


Meeting History

Jul 9, 2019 3:02 PM  City Council Voting Meeting
draft Draft

Finance Director Mark Woodfill provided a presentation to Council regarding the background of the Uniform Tax Code and necessary updates throughout the years. Since 2014 clerical updates have not been adopted by the City, however, the time has now come to do this as a general housekeeping matter in order to stay current. Since this Council memo was put together there were two additional changes which will be brought forward later this year, and in the next calendar year staff plans to have an item which will allow Council to adopt the Tax Code as maintained by Federal Government so this does not have to be done in future.

Councilman Blair asked if it would be possible to go back to the way it was prior to 1986 when we did not have to do this and had our own tax code.

Mr. Woodfill said that the state does not allow for that.

MOVER:Steve Sischka, Councilman
SECONDER:Billie Orr, Mayor Pro Tem
AYES:Greg Mengarelli, Billie Orr, Steve Blair, Phil Goode, Jim Lamerson, Alexa Scholl, Steve Sischka