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Informational Notice included with the June 2014 State of Arizona TPT Return regarding Tax Simplification
TPT - Transaction Privilege (Sales) Tax Simplification is coming!

The Tax and License Office administers the collection of transaction privilege (sales) and use taxes and issues tax and special regulatory licenses.

 

Important When Purchasing an Existing Business

Pursuant to the Mesa Tax Code, a purchaser of an existing business can be held liable for past due taxes, interest and penalties owed by the seller of the business. In order to avoid this successor liability, the purchaser must request from the seller a copy of a Certificate of Compliance that the seller has obtained from the City’s Tax Audit & Collections Department which states that the seller does not have any amounts due the City. (Refer to Mesa Tax Code Section 5-10-595 for additional information)

Tax Information

 

Transaction Privilege Tax *
The City of Mesa imposes a 1.75% transaction privilege tax on the gross receipts from various types of business activities.  Privilege tax is often passed on to the business' customers as "Sales Tax".  However, this is a tax on the privilege of doing business and is not a true sales tax.
More information:     City Code     City Reg

 

Use Tax                                
Any business and some individuals may be required to pay use tax.  Use tax is imposed on items you acquire from a retailer which you store or use in the city.  You pay it on items on which you have not already been charged a transaction privilege tax equal to at least the 1.75% Mesa tax rate when you acquired the item.  As this tax is imposed on purchases from retailers, "casual" purchases from individuals are not taxable.
More Information:     City Code     City Reg

 

Transient Lodging Tax      
The City of Mesa imposes a 5% transient lodging tax.  This tax is imposed on the occupancy of space or use of furnishings or other services or accommodations in a hotel, motel, or any other lodging space intended for occupancy by transients for dwelling, lodging, or sleeping purposes for a period of 30 consecutive calendar days or less.
More Information:     City Code     City Reg

 

* Transactions between related companies or persons are taxable by the City of Mesa. See Mesa City Code Section 5-10-100 for the definition of a "Person", Section 5-10-210 "Determination of gross income: transactions between affiliated companies or persons", and Section 5-10-220 "Determination of gross income: artificially contrived transactions".

 

Effective October 1, 2008, all persons applying for municipal licensing  as Individuals, Sole Proprietors, or Husband & Wife businesses, 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.”  (for more information refer to Transaction Privilege (Sales) & Use Tax License application)

 

Tax Rates

The retail tax rate in Mesa is currently 8.05%.  This consists of:
     
City of Mesa 1.75% (remitted to the City of Mesa)
State of Arizona 5.6%   (remitted to the State)
Maricopa County 0.7%  (remitted to the State)
     
Other tax rates:    
Use Tax 1.75% (remitted to the City of Mesa)
Transient Lodging Tax (TLT)  5.0% (remitted to the City of Mesa)

 

Recent Tax Changes

The 1% Temporary Arizona Transaction Privilege Tax increase approved by voters in May 2010 will expire after May 31, 2013. The new State, Maricopa County & City of Mesa combined tax rate effective June 1, 2013 will be reduced to 8.05% (State 5.6%, Maricopa County .7% and City of Mesa 1.75%). NOTE: there is no change or reduction in the City tax rate, just the overall combined rate. For more information refer to the Arizona Department of Revenue’s Website at www.azdor.gov.
Arizona Tax Matrix for Hotel/Motel Lodging Industry

ORDINANCE 5059  (Medical Marijuana tax code language, Rental of Real Property updates, and Use Tax Exemptions for a School District or Charter School)

Conforming changes to the Mesa City Tax Code:  Solar Energy Devices, Real Property Rentals Between Affiliated Corporations, Use Tax Exemption for School Districts and Charter Schools  
   

Effective 01-01-2011 the City's Transient Lodging Tax (TLT) rate increased from three percent (3%) to five percent (5%).

Collection of Delinquent Amounts Owed to the City (Ordinance 5005 - effective 11-03-2010)

  1-32-100 SINGULARITY OF DEBT; SET-OFF
  1-32-200 LIMITATIONS ON OBTAINING NEW LICENSES, SERVICES OR BENEFITS UNTIL DEBT IS PAID
  1-32-300 PERSONAL LIABILITY; PRESUMPTIONS
  1-32-400 limitation on related party obtaining licenses, services, or benefits
  1-32-500  VOLUNTARY SUCCESSION; CREATION OF LIEN; TRANSFERRED LIABILITY; CONTINUED LIABILITY
1-32-600 involuntary business succession; creation of lien
  1-32-700 notice of lien; recording of lien
  1-32-800 release of lien; waiver of right to lien against successor if CERTIFICATE produced
  1-32-900 change of business entity form; continuation of prior liability.
  1-32-1000 collection charges


Out of State Purchases and the Requirements on Vehicles TPP 08-1
 
 The City of Mesa requires each business to renew their Transaction Privilege (Sales) & Use Tax License by January 1 of each year. If the business does not renew their license and is still operating the business; the business is consider operating without a license.
 
5-10-330: OPERATING WITHOUT A LICENSE: It shall be unlawful for any person who is required by this Chapter to obtain a Privilege License to engage in or continue in business within the City without a license. The Tax Collector shall assess any delinquencies in tax, interest, and penalties which may apply against such person upon any transactions subject to the taxes imposed by this Chapter.
 
5-10-2: VIOLATION, PENALTY: (2447) Any person convicted of a violation of any provision of Title 5, Chapter 10, Mesa City Code shall be guilty of a misdemeanor and shall be punished by a fine not to exceed two thousand five hundred dollars ($2,500.00) or by imprisonment for a term not to exceed six (6) months, or by both fine and imprisonment. (2447,2466)


Liquor License Fees & Charges

Effective Aug 1, 2010 the Issuance Fee for Series 1-4, 8 and 13 Liquor Licenses will increase to $2000.  Also, the Annual Renewal Fee for Series 1-4, 8 and 13 is $500.


Ordinances and Resolutions

Collection of Tax when there is Succession - Ordinance 5017
 
Transient Lodging Tax Increase - Ordinance 5018 from 3% to 5%.  Passed and Adopted on 12/13/10.  Administratively effective on January 1, 2011

Park and Swap Operations (Word / PDF)
(4982 - Passed and adopted June 21, 2010.  Effective date is August 1, 2010.)

Auctioneers, Pawnbrokers, Scrap Metal Dealers, and Secondhand Dealers (Word / PDF)
(4982 - Passed and adopted June 21, 2010.  Effective date is August 1, 2010.)

Privilege and Excise Taxes:
 -  Tax Code and Regulations Index (Excel / PDF)
 -  Tax Code (Word / PDF)
(4990 - Passed and adopted June 21, 2010.  Effective date is August 1, 2010.)

Licensing Information

 The Licensing Office issues and monitors liquor licenses, special event licenses and all specialty licenses such as:

  • New! Licensing processing timeframes
  • off track betting
  • massage establishment (See draft of proposed code changes)
  • secondhand stores
  • pawnbrokers
  • scrap metal dealers
  • auctioneers
  • peddlers
  • transient merchants
  • transient vendors
  • sexually oriented businesses and employees
  • teen-age dancehalls
  • fortune tellers
  • park and swaps

Related links:

 

Effective October 1, 2008, all persons applying for municipal licensing  as Individuals, Sole Proprietors, or Husband & Wife businesses, 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.”  (for more information refer to Transaction Privilege (Sales) & Use Tax License application)

 

 

 

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:

Licensing
Tax

More Information:

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     Transient Lodging Tax
     Use Tax
   
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     Liquor License Status
     Liquor License FAQ

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