Sales Tax & Business Licenses

Property Tax Information
If you have any questions about your property tax notice or your appeal options, contact the Maricopa County Assessor's Office at 602-506-3406 or on the web at www.mcassessor.maricopa.gov.

Important Notice Regarding City of Tempe Sales Tax Rate Change Effective July 1, 2014

The City of Tempe reminds local businesses to re-program their computer equipment to reflect a lower city sales tax rate of 1.8 percent beginning July 1.

The upcoming 2014-15 fiscal year starts July 1 and it marks the end of the additional sales tax approved by voters and promised by the City Council to expire in 2014. Those funds contributed to the General Fund – the city’s biggest operating fund – for four years during the worst of the latest economic recession and helped the city avoid more extensive layoffs and service cuts.  Tempe voters passed Proposition 401 during the May 18, 2010, General Election, allowing for a four-year, two-tenths of a cent sales tax increase that enabled the city to preserve essential services such as public safety and recreation programs. Effective July 1, 2010, the city portion of sales tax went from 1.8 percent to 2 percent. On July 1, 2014, that rate will go back to 1.8 percent.

Local businesses should reflect the lower tax rate starting July 1 in order to avoid later issues.

The Tempe privilege (sales) tax rate is 2.0% effective 7/1/2010 through 6/30/2014
The Tempe privilege (sales) tax rate is 1.8% effective 7/1/2014
The combined State, County and City tax rate is 8.3% effective 6/1/2013 through 6/30/2014
The combined State, County and City tax rate is 8.1% effective 7/1/2014

Transaction Privilege (Sales) Tax Simplification Changes are coming in 2015.

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 2015.

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 2014.

Effective with tax periods beginning January 2015, 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 2015 license year.
• Beginning with the January 2015 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 2014 taxable activity will be collected by the ADOR; any pre 2015 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: http://www.azdor.gov/tptsimplification.aspx.

 
 

Sales and Use Tax Return with Instructions

 
 

Sales Tax License Application

 

2014 Filing Dates Calendar

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."