Applications for Tempe's new General Business License, which goes into effect Aug. 1, are now open. Businesses are encouraged to apply before the end of the year to receive waived fees through Jan. 1, 2027.
Why did Tempe establish a business license?
The license will provide a single point of intake for information and establish a more complete database to better serve businesses, bridging a current information gap. An estimated 30,000 Tempe businesses are not in the city’s database.
This new database will be used to encourage engagement in decision-making, provide information about events and opportunities and reach businesses in the event of emergencies. Businesses can opt out of publicly sharing their contact/demographic information in the database.
The license also opens the door for Tempe’s Economic Development team to share resources such as grants, training opportunities, technical support, workforce development and more directly with the community.
Who needs a Tempe General Business License?
Businesses with a permanent location in Tempe, including those not required to obtain a Transaction Privilege Tax (TPT) license, such as professional services and contractors with job sites in Tempe, will be required to obtain a business license.
How much does a business license cost?
The annual fee for the license is $25, but businesses that apply through Dec. 31, 2025, won't have to pay any fees until Jan. 1, 2027. Revenue will cover administrative costs and programs to support businesses. This aligns with fees charged by other cities in the region.
Are there any businesses that are NOT required to have a Tempe General Business License?
Yes. Exemptions include businesses with existing regulatory licenses (such as tobacco sales or short-term rental licenses), temporary businesses, special event vendors, and other businesses like casual activities, childcare, independent contractor/sale representative, educational lessons, and tutoring services. Religious, veteran, or civic service organizations that conduct business in the city for a nonprofit purpose on four or fewer occurrences are also exempt. See more details here.
What happens if I don't have a business license?
Failure to obtain or renew a Tempe General Business License carries a penalty of the license fees due for each year in business plus a penalty in the amount of 50% of the applicable license fees.
Read the ordinance and find complete details at tempe.gov/BusinessLicense.
Questions about the license?
Contact license@tempe.gov or call 480-350-2955
Media contact: Savannah_Driskill@tempe.gov