Policy

In September, 1999, the City adopted a Living Wage ordinance that focuses on creating a wage rate that will increase the ability of employees to support their families, decrease the amount of poverty, and reduce the amount of taxpayer funded social services in Tucson.

In accordance with the City of Tucson’s Living Wage Ordinance, employees of city contractors and sub-contractors providing services to the city shall be paid a living wage by said contractors and sub-contractors for the hours expended providing services to the city, while on city property.

Effective January 1, 2024 and for the remainder of calendar year 2024, the living wage shall be as follows:

• $16.80 if health insurance benefits are offered AND the contractor pays no less than 50% of the employee’s health benefits premium. 
• $18.45 if health insurance benefits are not offered OR if the contractor pays less than 50% of the employee’s health benefits premium

The wage rates are automatically adjusted each year based upon the cost of labor adjustment provided to City of Tucson employees.

Vendors are advised that the City of Tucson requires proper labeling and Material Safety Data Sheets (MSDS) on all products covered by the Hazard Communication Act - 29 CFR 1910.1200.

It is the vendor’s responsibility to determine which products are covered by the act and to provide MSDS with the initial shipment.

It is also the vendor’s responsibility to provide any updates or revisions of MSDS as they may become available for any products sold and delivered to the City of Tucson.

It is the policy of the City of Tucson to require that firms providing goods and services to the City adhere to a policy of equal employment opportunity.

Firms shall demonstrate an affirmative effort to recruit, hire, promote and upgrade the position of employees regardless of race, color, religion, ancestry, sex, physical handicap, national origin, sexual or affectional preference, or marital status.

The City of Tucson supports the purchase of recycled materials, both in products that are reduced to raw material and remade into material that can be used for other purposes, as well as items that can be rebuilt or remanufactured and placed back into service for continuous use.

In an effort to support recycling, the Business Services Director is authorized to purchase recycled material if the price differential between available virgin material and recycled material is within ten percent and there is an insignificant impact on the overall project budget.

The Business Services Department requires that whenever practicable, all printed material produced by a contractor in the performance of a contract shall be printed on recycled paper and duplexed.

The City of Tucson's two percent (2%) Business Privilege License Tax (City sales tax) is applicable to sales made to the City of Tucson by Tucson vendors and must be noted on the bid form.

Resident Arizona vendors are responsible for the Arizona Transaction Privilege Tax (State Sales Tax).

Applicable sales tax is not to be included in the bid price with the exception of construction contracts.

The City of Tucson does not pay sales tax to out-of-state vendors.

The City does pay directly to the State of Arizona all Arizona sales and excise tax. Therefore, all vendors who do not maintain a business presence, directly or through a subsidiary, a warehouse, sales office, distribution house, or other place of business in the State, are not to include State sales taxes in the bid price.

The tax on any such award will be paid by the City of Tucson (Use Tax Certificate of Registration No. 60-5866) directly to the State of Arizona.

The City of Tucson, upon request, will execute the exemption certificates in connection with all orders when federal excise tax would otherwise be due.

On August 6, 1990, the City of Tucson adopted an ordinance to provide for a City of Tucson sales tax off-set for purchases by the City. As a result of the ordinance, purchases are now evaluated by adding to a base bid of a non-Tucson firm, a percentage equal to the taxes that would be paid to the taxing jurisdiction of the non-Tucson firm.

The amount of local taxes paid by a Tucson vendor is not added for purposes of evaluation.

Firms located outside of Arizona are not affected by this policy.