Advertising

You owe tax on advertising if:

You are in the business of selling "local advertising" within the city. This tax is paid on the advertising income of persons in such businesses as billboards, direct mail, radio, television, etc. The commissions and fees retained by an advertising agency are not part of the taxable income.

 

Tax rate on advertising

The tax rate is 1.75% of the gross income from "local advertising." (Note: The Mesa City Tax rate increased to 1.75% effective 07/01/2006)


Collection of Tax

You may choose to charge the tax separately on each sale, or include Transaction Privilege Tax in your price. If you over charge any tax to your customers, you must remit the excess tax to the city.

If your price includes Transaction Privilege Tax, you can compute how much of the total price is Transaction Privilege Tax. You may deduct the Transaction Privilege Taxes from your gross receipts.

 

What is "local advertising"?

Local advertising is the advertising of products, services, and activities with a presence within the state.  For more information go to Local Advertising vs. National Advertising.

 

When is an advertising business operating "within the city"?

Businesses are generally considered to be doing business in the City if a major portion of their dissemination facilities are located in the City. A broadcasting studio located in the City is an example.

Outdoor advertising such as billboards is taxable based on the city in which the billboard is located.

Advertising income from newspapers and periodicals is taxable as part of the tax on "publishing."


 

Office Locations:
Licensing Office
55 N. Center St.
Mesa, AZ  85201
Phone: 480-644-2316
FAX: 480-644-3999

Tax Audit & Collections
20 E. Main St, Suite 450
Mesa, AZ 85201
Phone: 480-644-3816
FAX: 480-644-2687


Office Hours:

Monday - Thursday
7:00 a.m. to 6:00 p.m.
Closed Fridays

Mailing Address:
Tax & Licensing Office
P.O. Box 1466
Mesa, Arizona 85211-1466

E-mail:

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