In preparation for the transition to administration of Transaction Privilege (sales) Tax (TPT) collection by the Arizona Department of Revenue, changes have been made to the Tempe Tax Code that will impact some taxpayers. These changes are effective January 1, 2015.
• The $20 application fee has been eliminated.
• Each business location must obtain a separate license and pay an initial one-time $50 license fee. Any business owner who owns multiple business locations will continue to license each location separately.
• Any business owner who owns multiple business locations will be required to pay only one $50 license renewal fee. If you receive an annual license renewal form for multiple business locations for which there is the same legal ownership, complete all forms, indicate which license is the primary location and return all together with one $50 annual renewal payment. Examples: • Owner Smith owns 5 pizza locations in the City of Tempe under the business name Pizzeria Smith. Owner Smith will pay one $50 renewal fee for covering all 5 locations. Owner Smith still must maintain separate licenses for each location. • There are three “Benny’s” restaurant locations in Tempe, one owned by JH Incorporated and two owned by COS LLC. JH Incorporated will maintain one license and pay a $50 renewal fee. COS LLC will maintain two licenses, one for each location, but will pay one $50 renewal fee covering both licenses. • There are two “Bottom Dollar” stores in Tempe. One is owned by Mary and Ralph Jones, and the other is owned by MRJ LLC, whose members are Mary and Ralph Jones. As each store is owned by a different legal entity, separate licenses must be maintained in the name of each entity, and two $50 renewal fees are required.
Residential Rental Property: • As of January 1, 2015 residential rental owners must obtain a master license and pay an initial $50 fee for each taxable residential rental location. Owners of existing licensed properties will pay one annual $50 renewal fee for all currently licensed properties (master license) plus a one-time additional $50 fee for each new property added to the master license.
• Only one $50 renewal fee is required, regardless of the number of properties owned. (This is the City of Tempe’s current practice.)
• Licenses must be held in the name of the property owner; property managers cannot hold the licenses for properties they manage. (This is the City of Tempe’s current practice.)
• Property managers may still submit TPT tax returns for their clients but must do so using the owner’s license number. (This is the City of Tempe’s current practice.)
For any questions on these changes, please call our Tax and License office at (480) 350-2955. We are open from 7 a.m. to 5 p.m. daily.
Due to the enactment of House Bill 2111 and House Bill 2389, the Arizona Department of Revenue (ADOR) will become the single point of administration and collection for all City, County and State transaction privilege and use taxes beginning in 2016.
IMPORTANT: Do NOT file Tempe city privilege and use taxes with the ADOR at this time. Continue to file and remit your Tempe city privilege taxes with the City of Tempe Tax & License Division through and including the tax period ending December 2015.
Effective with tax periods beginning January 2016, privilege taxes for all cities will be filed with and paid to the ADOR. This will include tax returns and payments for Tempe, which in the past has received tax returns and payments for city privilege taxes directly.
How does this impact you and your business? • All licenses and renewals will be issued through the ADOR starting with the 2016 license year. • Beginning with the January 2016 tax return, all businesses will use the ADOR tax form (even those not previously required to file with the ADOR). • Online filing and payments will be available to businesses via a ADOR website: www.AZTaxes.gov. • Any collection liabilities resulting from post 2015 taxable activity will be collected by the ADOR; any pre 2016 liabilities will be collected by the City of Tempe.
There will also be important changes to how construction contracting and related trades are taxed, as well as changes to the process of applying for, paying for, and renewing privilege tax licenses.
We plan to update our site as often as information becomes available about this transition and how it will affect your business. Please refer to the following link for more information: https://www.azdor.gov/TPTSimplification.aspx.
The City of Tempe Sales Tax Rate Changed Effective July 1, 2014
All persons applying for business license as an Individual, Sole Proprietor or Husband & Wife business, must provide evidence of their legal right to be in the United States in compliance with A.R.S. 41-1080, also known as the “Legal Arizona Workers Act".
This website is for general information only. It is an informal and nonbinding communication and does not provide comprehensive explanations of laws and regulations. The intent is to condense and simplify the language in the Tempe City Code. For complete details, refer to the Tempe City Code and related regulations. In case of inconsistency or omission, the language of the City Code shall prevail.
"Our mission is to provide quality service to all Tempe taxpayers, and administer the tax code in a fair and equitable manner."