§ 553. Examination of taxpayer records; joint audits.

(a)

Waiver of joint audit: A taxpayer that does not authorize a joint audit to be conducted for a tax jurisdiction is subject to audit by that tax jurisdiction at any time subject to the limitation provisions provided in Section 550.

(b)

Tax jurisdiction acceptance of joint audit: If the Arizona Department of Revenue intends to conduct an audit of a taxpayer, the cities or towns for whom a joint audit is being conducted may accept the audit by the Arizona Department of Revenue or may elect to have a representative participate, provided that no more than two (2) City or town representatives in total may participate.

(1)

If a City or town does not accept the audit as a joint audit, the City or town may not conduct an audit of the taxpayer for the forty-two (42) months from the close of the last tax period covered by the audit unless an exception applies to that taxpayer pursuant to A.R.S. Section 42-2059.

(2)

If a joint audit is performed by a City or town, the Arizona Department of Revenue is not prohibited from conducting an audit that does not violate the provisions of A.R.S. Section 42-2059.

(Ord. No. 3385, § 4, 5-14-01)