City of Tucson Business License and Tax Updates

Contact the License Section at:

Phone:  (520) 791-4566
Fax:  (520) 791-5082
Email:  Tax-License@tucsonaz.gov

 

Business License and Tax Updates

Click a link below for more information about that subject:

2019 Annual Business License Renewals

Tax Rate Reminders

Contracting Changes for 2019

Businesses with Unfiled Returns or Underpayments

How to Pay Your Renewal Electronically

Speculative Builders and Owner Builders

Other Tax Code Changes

 

 

2019 Annual Business License Renewals

City of Tucson business license renewals for 2019 were mailed out the week ending Friday, November 30.  Renewal fees are $50 for most licenses, and are due January 1, 2019.  

If paying a renewal by mailing a check, please use the return envelope provided, make the check payable to "City of Tucson", and include the renewal form, marked with any changes to contact information.

Renewals may be paid on-line by using our e-Tax system to initiate an ACH payment request.  Routing and account numbers for a valid checking or savings account must be provided, and, if normally restricted, company authorization for an ACH payment request must be granted to the City.  If you choose to pay on-line, but have changes that would have been reported on the renewal form, please send those via email to the License Section at the email address provided above, and include your license number(s) and business name(s).  Our e-Tax system does not support payment by using credit or debit cards.

If you are located in the Tucson area, you may pay your renewal, by cash, check, or credit card, at any of several City of Tucson cashier locations.  You must have your renewal form(s) with you, or the cashier will not be able to accept payment.  If you are planning to pay at the City Hall cashier station, but do not have your renewal form, you may obtain a copy of your renewal form at the Business License counter, across from the cashier station.

Renewal billing forms are being mailed for all licenses subject to annual renewal for 2019.  If you have already paid your renewal on-line, please do not send a payment with your renewal form, as this will result in a credit on your account.  Conversely, if you have mailed a check with your renewal form to pay for your renewal, do not pay the renewal fee on our e-Tax system, as that will also result in a credit on your account.

If you have not received your business license renewal by December 17th, please contact the License Section to verify your mailing address.

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Tax Rate Reminders

The City of Tucson tax rate increased effective July 1, 2017 from 2% to 2.5% for most business activities, and increased effective March 1, 2018 from 2.5% to 2.6% for those same business activities.  This is especially important to note if you are an annual filer as the city tax rate has increased from the return filed for 2017.

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Contracting Changes for 2019

Effective January 1, 2019, the definition of “alteration” for commercial projects will be changing.  Senate Bill 1409 simplified the definition.  Prior to January 2019, commercial projects that met the following three requirements were considered alteration: 1) the price of the job was less than or equal to $750,000, and 2) the project altered 40% or less of the original square footage of the structure and 3) no more than an additional 10% of the original square footage is added to the existing structure. 

As of January 1, 2019, the only requirement for a commercial project to be considered an alteration is that the price of the project be less than or equal to $750,000.  Commercial projects for more than $750,000 will be considered modifications and subject to the construction contracting section (19-415) of the Tucson Tax Code.

Contracts signed prior to January 1, 2019 will be subject to the three requirements listed above.

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Businesses with Unfiled Returns or Underpayments

Businesses with unfiled City of Tucson returns or underpayments for periods prior to January 1, 2017 can call the Revenue Investigations Section at (520) 791-4247 for assistance with filing any missing returns during that time period and getting their account(s) up to date.

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How to Pay Your Renewal Electronically

If you would like to get information about paying your annual business license renewal online, read through this document (this is a PDF file, so it is best viewed with Adobe Reader or Adobe Acrobat).  It includes instructions about creating a user ID and password in our e-Tax system, and then making an ACH payment for your annual license fees.

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Speculative Builders and Owner Builders

Speculative builders and owner builders are potentially liable for city sales tax on new construction built and sold within the City.  Please call Tax Audit at (520) 791-4681 to see if this could apply to you, and for more information on how to report the tax on these types of sales.

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Other Tax Code Changes

For any changes to the City of Tucson tax code, check the link to Model City Tax Code at https://modelcitytaxcode.az.gov/ .

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