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

Mailing address:  City of Tucson License Section, PO Box 27210, Tucson, AZ, 85726-7210

Office address:  Tucson City Hall, 255 W Alameda St, Tucson, AZ, 85701

 

Business License and Tax Updates

Click a link below for more information about that subject:

Refunds for Business Taxes and Fees

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

 

 

Refunds for Privilege Taxes and License Fees

If you have received an account statement from the City of Tucson, with a credit balance, non-filed returns, or outstanding balances, please contact the appropriate Taxpayer Assistance office at the phone number or email listed at the bottom of the front page of the statement.

For all other refund requests:  Effective July 1, 2019, the Arizona Department of Revenue (ADOR) administers all refund claims for Transaction Privilege (Sales) and Use Taxes for ALL taxing jurisdictions in the state of Arizona.  See this link (https://azdor.gov/transaction-privilege-tax/tpt-refund) for instructions for submitting a refund claim through ADOR.  All documents identified at this website, or any others requested by ADOR must be returned solely to ADOR.

 

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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