City of Tempe, AZ
Home MenuTaxable Business Activities In Tempe
💼 Tempe Transaction Privilege Tax (TPT) Rates & Classifications
Current City TPT Rate: 1.80% (unless noted otherwise)
Each business activity below includes its definition, tax rate, and Tempe City Code reference.
📰 Advertising
Rate: 1.80%
Definition: Promoting products or services through billboards, radio, TV, direct mail, or any public medium.
Code: Tempe City Code §16-405
🎟️ Amusements
Rate: 1.80%
Definition: Operating amusement or entertainment venues—such as movie theaters, concerts, sports events, bowling alleys, gyms, or skating rinks.
Membership fees are taxable.
Exempt: Instruction in dance, martial arts, and gymnastics.
Code: Tempe City Code §16-410
🏗️ Contracting – Prime
Rate: 1.80%
Definition: Construction, alteration, or improvement of real property (land, roads, buildings).
Resource: ADOR Contracting Guidelines
Code: Tempe City Code §16-415
🏘️ Contracting – Speculative Builders
Rate: 1.80%
Definition: Sale of improved real property by speculative builders.
Resource: ADOR Contracting Guidelines
Code: Tempe City Code §16-416
🧱 Contracting – Owner Builder
Rate: 1.80%
Definition: Construction or repair of real property by owner-builders, developers, or contractors not licensed by the Registrar of Contractors but performing taxable work.
Resource: ADOR Contracting Guidelines
Code: Tempe City Code §16-417
🖨️ Job Printing
Rate: 1.80%
Definition: Copying or reproducing items through printing, engraving, or photo reproduction.
Code: Tempe City Code §16-425
🏠 Manufactured Buildings
Rate: 1.80%
Definition: Selling, moving, or setting up factory-built homes or buildings.
Code: Tempe City Code §16-427
🌲 Timbering & Extraction
Rate: 1.80%
Definition: Cutting or preparing timber, or extracting and refining oil or gas for sale.
Code: Tempe City Code §16-430
⛏️ Severance – Metal Mining
Rate: 0.10%
Definition: Mining or smelting mineral products for sale (excluding sand, gravel, or rock).
Code: Tempe City Code §16-432
🗞️ Publishing
Rate: 1.80%
Definition: Producing newspapers, magazines, or periodicals. Includes subscriptions and advertising income.
Code: Tempe City Code §16-435
🏨 Hotels & Short-Term Rentals
Rates:
City TPT: 1.80% (for stays of any length of time)
Transient Lodging Tax: 5.00% (for stays under 30 days)*see below
Definition: Income from hotels, motels, apartments, or short-term rentals providing lodging.
Resource: ADOR Short-Term Rental Guidelines
Code: Tempe City Code §16-444
🏩 Hotel/Motel – Additional Tax
Rate: 5.00% (in addition to standard 1.8%)
Definition: Applies to hotels or short-term rentals charging for lodging to transients (stays under 30 days).
Resource: ADOR Short-Term Rental Guidelines
Code: Tempe City Code §16-447
🏢 Commercial Rental of Real Property
Rate: 1.80%
Definition: Leasing or licensing commercial real estate such as office buildings, parking, or storage facilities.
Code: Tempe City Code §16-445
🧰 Rental of Tangible Personal Property
Rate: 1.80%
Definition: Renting or leasing items like software, digital goods, equipment, vehicles, furniture, or coin-operated machines.
Code: Tempe City Code §16-450
🍽️ Restaurants & Bars
Rate: 1.80%
Definition: Selling food or beverages for on- or off-premise consumption (includes caterers, food trucks, and mobile vendors).
Resource: ADOR Publication 605 – Food & Beverage Guidelines
Code: Tempe City Code §16-455
🛍️ Retail Sales
Rate: 1.80%
Definition: Selling any tangible personal property (e.g., furniture, clothing, or electronics).
Resource: ADOR Retail Guidelines
Code: Tempe City Code §16-460
💻 Remote Seller (Out-of-State Retail Sales Into Arizona)
Business Code: 605
Rate: 1.80%
Definition:
Sales of tangible personal property (such as furniture, clothing, or electronics) by businesses located outside Arizona but selling to customers within the state. A remote seller has economic nexus if in the previous or current year, the gross sales generated from direct sales into Arizona is more than $100,000.
Resource: ADOR Out-of-State Retail into Arizona Guidelines
Reference: A.R.S. §42-5044
🥫 Retail Sales – Food for Home Consumption
Rate: 1.80%
Definition: Sales of food intended for home consumption (excluding alcohol and tobacco).
Code: Tempe City Code §16-462
📡 Telecommunication Services
Rate: 1.80%
Definition: Providing telephone, cable, internet, or other communication services.
Excludes: Alarm monitoring as defined by A.R.S. §32-101.
Code: Tempe City Code §16-470
🚚 Transporting for Hire
Rate: 1.80%
Definition: Transporting property or people for hire by railroad, pipeline, or aircraft.
Code: Tempe City Code §16-475
⚡ Utilities
Rate: 1.80%
Definition: Producing or providing electricity, gas, water, or power to consumers.
Code: Tempe City Code §16-480
💸 Use Tax (Purchases & From Inventory)
Rate: 1.80%
Definition: Applies when tangible property is purchased for business use without paying equivalent Tempe TPT.
Code: Tempe City Code §16-610
City Code: TE
County: MAR (Maricopa)
📞 Need Help?
Tempe Tax & License
📍 20 E. 6th Street, Third Floor, Tempe, AZ 85281
🕒 Hours: Monday–Friday, 8 a.m.–5 p.m., walk-ins until 4:30 p.m. (except City holidays)
📧 [license@tempe.gov]
📞 480-350-2955